New Jersey Court Bars Discharge of $7,595 Unemployment Debt for Fraud
Updated
Updated · Bloomberg Law · Jul 6
New Jersey Court Bars Discharge of $7,595 Unemployment Debt for Fraud
1 articles · Updated · Bloomberg Law · Jul 6
Summary
$7,595.74 in unemployment-benefit debt cannot be wiped out in bankruptcy after a New Jersey federal court ruled for the state labor department.
The court found the applicant falsely certified week after week that he was not working, even while employed full-time by J.W. Ferrell Concrete Co. and Scaranos Industrial Masonry.
Those repeated false certifications and his failure to report earnings showed fraudulent intent, bringing the debt within the Bankruptcy Code exception for money obtained by fraud.