Thinking of Filing for Bankruptcy.HELP!!

[Anonymous]

Hello all. I am so stressed and dont know what to do. I'm at a loss and would appreciate any adivce you all can lend. So I received a notice in the mail that EDD is going to start garnishing my wages. 25% of every check which basically leaves me with abosolutely nothing.  They say I owe them close to $10,00.00 from overpayments that were made back in 2011 when I was unemployed. I never received any paper work or anything. I asked them what address they had been sending mail to and it was an address I lived at many years ago. They could care less. Anyways I am seriousely way in over my head here and am thinking about filing for bankruptcy. I dont have anything in collections. Always make on time payments. Only thing bad on my credit is a paid charge off due to fall off in 2019 and a few student loan lates from 2013 and 2014. I dont want to burny any of my creditors. Ive just worked to dam hard to always make on time payments. So If I was to file for bankruptcy this would be the only thing that would be included on it. Please lend me some advice on what I should do. Is this a good idea. Im beyond stressed right now. 

[luxeprw9]

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@Anonymous wrote:

Hello all. I am so stressed and dont know what to do. I'm at a loss and would appreciate any adivce you all can lend. So I received a notice in the mail that EDD is going to start garnishing my wages. 25% of every check which basically leaves me with abosolutely nothing.  They say I owe them close to $10,00.00 from overpayments that were made back in 2011 when I was unemployed. I never received any paper work or anything. I asked them what address they had been sending mail to and it was an address I lived at many years ago. They could care less. Anyways I am seriousely way in over my head here and am thinking about filing for bankruptcy. I dont have anything in collections. Always make on time payments. Only thing bad on my credit is a paid charge off due to fall off in 2019 and a few student loan lates from 2013 and 2014. I dont want to burny any of my creditors. Ive just worked to dam hard to always make on time payments. So If I was to file for bankruptcy this would be the only thing that would be included on it. Please lend me some advice on what I should do. Is this a good idea. Im beyond stressed right now. 

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I'm sorry but I don't know what EDD is.  But are you able to settle with them?  

[Anonymous]

EDD is the unempoyment department for California. And no they will not settle. Already tried that. 

[medicgrrl]

If you have any open accounts, then they would also be included in the bankruptcy. I don't think you can choose who to include. Also, you need to check with an attorney to make sure that debt is dischargeable. Have you considered taking out a personal loan?

[Anonymous]

^^What medicgrrl said. If you have no baddies on your CR, you should be able to take out a personal loan to cover the debt which would cost you a lot less than 25% of your income.

Good luck to you!

[StartingOver10]

Agree with the others - first check that the debt is dischargeable. I would find it hard to believe that it is.....make sure the source of your info is correct.

[Anonymous]

hello all. Thank you all for your responses. I checked into it and it is dischargable. Where can I get a loan for $9000 if I were to go that route?

[medicgrrl]

You can try your bank first. There are also other types of lenders available that you can research on the Personal Finance forum.

[Anonymous]

State owed unemployment income is dischargable? I thought federal and state debts were exempt fron bankruptcy. Did a lawyer tell you this?

[Anonymous]

I was in EXACTLY this situation! I am in California also. However, they did garnish my checks which led me to having to file for Chapter 7. If it's not too late, can you start making payment arrangements with them? Unfortunately, once they have the garnishment order, I believe they are less likely to work with you since they know they have guaranteed money coming via the garnishment. Obviously, bankruptcy is the LAST thing you want to do, so if there's any way to get them to stop the garnishment try it! I know you only have like one or two pay periods before the garnishment starts.