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When the collector is the state?

Phoenix, AZ |

I'm headed for bankruptcy. :( I've never done it in my life and do not wish to start now. Is there anything I can do to get a "debt" waived or significantly reduced? I support a family of 4 in San Diego on less than $1800/ no. State of az claims I owe them nearly $10,000 after interest to repay undeserved unemployment insurance funds. No fraud was involved. Their employee/ deputy lied to me though and that is why I now "owe". Thanks

I mean: Is there anything I can do as an alternative to bankruptcy? I know there is a statute of limitations on regular debt, but is there one on state debt? I mean can they garnish after 7 years or whatever? Does it matter that I live in Cali but owe AZ? Thanks.

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Attorney answers 1


Unemployment owed to the State of AZ can be discharged (wiped out) in a bankruptcy case.

The information contained in my answer is provided for informational purposes only, and should not be construed as legal advice.



No kidding. I'm looking for alternatives though.

Andrew M Ellis

Andrew M Ellis


Write AZ DES a letter stating why you don't think you owe as much as they say you do, and ask the State to waive or reduce the amount of the debt.



Just to clarify: Original Answer not helpful but your follow up comment definitely was helpful. Thank you.

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