Unemployment Benefits Fraudulently Obtained Determined Non-Dischargeable in Bankruptcy Case

Connecticut – According to the Law, Bankruptcy allows “honest but unfortunate debtors” an opportunity to reset their financial affairs and get a fresh start, but some pre-existing debts that were not obtained honestly, such as debts obtained by false pretenses or by false representation, are not eligible for discharge. This was the case in a recent bankruptcy proceeding where the court determined that an overpayment of unemployment benefits, plus interest, was nondischargeable because the claimant had fraudulently represented her employment status and, as a result, received unemployment benefits she otherwise would not have been entitled to receive.

View the case here: http://www.leagle.com/decision/In%20BCO%2020170406700/IN%20RE%20KING