23bk07879, 23ap00285
On a complaint by the Illinois Department of Employment Security seeking a determination of nondischargeability under 11 U.S.C. § 523(a) on a debt arising out of allegedly improperly paid employment benefits, held:  Prior to commencing her bankruptcy case, the Debtor was eligible for state unemployment benefits from the State of Illinois.  Those benefits were provided by the state in an amount reduced by her income earned during the periods in question.  For that period—more than a year—the Debtor underreported her income to the Illinois Department of Employment Security.  The result of that underreporting was the Debtor receiving unemployment benefits at a level more than her actual, legal entitlement.  The Debtor now owes that overpayment to the State, which results in a debt and makes the Illinois Department of Employment Security a creditor of the Debtor in her case.  The Illinois Department of Employment Security has asked that this court determine that the debt is nondischargeable.  After a trial on the merits of the matter, the court agrees with the Illinois Department of Employment Security.  The debt in question is for money obtained by a series of false representations and the debt is nondischargeable under 11 U.S.C. § 523(a)(2)(A).  Judgment will be entered in favor of the Illinois Department of Employment Security.