Unemployment is garnishing my wages!

When I received my paycheck today, I discovered that unemployment garnished my wages for almost $200. This is for an overpayment in benefits from back in 2005. I owe just over $4,000, and can not afford to pay them almost $400 a month. Is there anything I can do besides file for bankruptcy? I was not served any papers, and did not receive any letters.

Thanks ahead of time.

Usually you are informed by some means prior to the garnishement, but I think the govenment may have a different set of rules. This happenned to me with the IRS, but they were kind enough to send me a letter first.

Sorry, as this probably doesnt help much, so try to remain calm and I am sure someone much smarter than me will be along shortly. This is a great forum and they give great advice.

I didn't realize they could do this, I thought they took it off your tax returns... I will be sure to pass on that information to someone I know...

Dont think it is eligible for bankruptcy either....public debt.

You may have been able to drum up a payment plan prior to all this, but at this point I don't believe there's anything that can be done. I would call unemployment anyways and see if there's anything that can be done

I have the same problem with owing unemployment--but you cannot write it off in a bankruptcy--this has to be paid. I have talked to my lawyer about it already.Call them and see if you can maybe set up a plan where you may not have to pay as much--it never hurts to ask.

Usually governmental bodies have different sets of rules than creditors in general. For example, the IRS doesn't need to get a court order to garnish your wages, they just go in and do it.

Unemployment probably falls under that sort of privilege. All they may be required to do is send you a notice by mail, and if you didn't pay by a certain date then they can automatically start a garnishment.

Unfortunately most government debts also fall outside of bankruptcy. So I don't think filing BK will eliminate it.

The most you can probably do is call the unemployment office and see if they'll setup payment arrangements instead of the garnishment.

lhaefs,are you sure this isn't the restitution part of it? I know the resitution part they will take once you start claiming again, even if you paid them what you owed them for overpayment, through paying with your states tax refund etc.

This part of the repayment has to be made through your unemployment checks if I remember correctly.

As you discovered, you will not get a letter regarding the resitiution portion, they will automatically start taking once you file and are approved again. Though to be sure, I'd still contact them.

can an overpayment of unemployment be taken out of your federal income taxes

Each state is different on how they handle overpayment. I know for my state, since we have state income tax, my overpayment came out of that, and that was only after not contacting them to make payment arrangements. So contact your unemployment office and see how they handle it. Or you may be able to find the information on their online website.

wanted to add that it should've also said in your unemployment handbook that you got from your state as to how they handle over payments.

I live in PA. My state, as well, handles 'overpayments', of any kind, through your Tax Refunds. I din't think they could take ANYTHING out of Unemployment, since this is a 'temporary' wage.

I thought I would reply quick as a guest because I am at work. lol

Just to clear this up... I am currently NOT on unemployment, I am working, and my wages are being garnished from previously being overpaid on unemployment.

I ended up emailing Wisconsin unemployment asking for a smaller portion of my check to be garnished. I explained that I couldn't not afford the $360 a month, and asked if I could pay $200 a month instead. (or $100 a check) They emailed me back about a day later approving it, mailed me a letter, and also my payroll department a letter. I am still amazed at how fast they responded... I guess this shows that it definitely DOES NOT hurt to ask!

Thanks for all of your responses and help everyone!!

The profanity deleted. just want their money, they could care less if you ended up homeless!
SameBox Response from "paulmergel":

Well I know that in the state of Illinois, if you owe unemployment, they will take their money either from you state taxes or from you unemployment benefits. You won't be able to collect until they are paid. Also, they will assign you penalty weeks. So if you were collecting benefits and were not suppose to, once you pay unemployment back, they can and will give you penalty weeks. Meaning you won't be able to collect your money until those weeks has been served.

tell them to go to hell your not paying!

Wow...if it was only that easy