Michigan Unemployment Overpayment Collections Are Back: What You Need to Know (and How We Can Help!)

If you received unemployment benefits during the pandemic, you’re not alone — and neither is the worry many people are feeling as Michigan unemployment collection efforts start looming.

The Michigan Unemployment Insurance Agency (UIA) has announced that it’s resuming collections on overpayments dating back to March 2020. According to the agency, roughly $2.7 billion was overpaid to about 350,000 residents, and now they plan to collect that money back.

For many, this feels unfair. Most people applied in good faith, following rapidly changing rules while the state urged quick filing. Even if the mistake wasn’t yours, Michigan law still allows the UIA to recover the funds — unless you qualify for a waiver or get protection through bankruptcy.

Let’s break down what’s happening, what your options are, and how Acclaim Legal Services can support you.

Michigan UIA Overpayment Collections: Key Dates & Deadlines

• Pause lifted: The UIA stopped collections for claims filed after March 1, 2020 — that pause ended September 12, 2025.
• Collections begin: Wage garnishments, tax intercepts, or repayment plans could start as early as September 29, 2025.
• Check your balance: Beginning September 12, log in to your MiWAM account to see if you owe an overpayment.

If you received a mass email from the UIA, your case may be included — even if a balance hasn’t appeared yet.

Feeling Blindsided by Michigan Unemployment Overpayment Collections?

We talk with clients every day who say, “I didn’t do anything wrong — why should I have to pay this back?”

That reaction makes sense. During COVID-19, unemployment programs expanded quickly to keep households afloat. Many overpayments happened because of agency errors or confusing guidance. But unless you meet the waiver requirements, the state can still collect.

That’s why it’s important to understand the waiver process, your rights in bankruptcy, and how to get solid guidance before collection efforts begin.

Michigan UIA Waiver Process: Can Overpayments Be Forgiven?

The UIA allows some debts to be waived if:

• The overpayment wasn’t your fault, and
• Repayment would create a financial hardship.

You must apply for a waiver; approval isn’t automatic. And waivers aren’t available if the UIA has determined fraud.

How Bankruptcy Can Help with Michigan Unemployment Overpayments

Bankruptcy may offer protection and relief from unemployment overpayment collections:

• Non-fraud overpayments can often be discharged in Chapter 7 or Chapter 13 bankruptcy if you list the UIA as a creditor.
• Fraud-related debts usually can’t be erased, but Chapter 13 lets you repay them through a court-approved plan.
• Filing bankruptcy stops wage garnishments, bank levies, and lawsuits through the automatic stay.

It’s essential to list both the UIA and the Michigan Attorney General in your paperwork. Doing so starts the deadline for the agency to object or claim fraud. If you don’t list them, they can challenge the discharge later — even after your case is closed.

Bankruptcy Offers More Than Just Help With Michigan UIA Debts

Bankruptcy isn’t only for addressing unemployment overpayments — it can give you room to breathe in many areas of your financial life. It may help you:

• Stop garnishments and collection calls from credit cards, medical bills, or personal loans.
• Protect what matters most, like your home, car, and wages, through exemptions or repayment plans.
• Simplify your finances by rolling unsecured debts into one affordable monthly payment under a Chapter 13 plan.
• Lay the groundwork for a stronger future with a clear timeline to rebuild your credit after discharge.

For many people, bankruptcy is the first real step toward financial stability — not just a way to deal with UIA collections.

FAQs About Michigan Unemployment Overpayments

#1  How do I know if I owe the UIA money?

Check MiWAM after September 12, 2025. If you got a mass email, your balance may show up soon.

#2  Do I have to repay if it was the state’s mistake?

Maybe. Unless you qualify for a waiver, Michigan law lets the UIA collect overpaid benefits even when the error was theirs.

#3  What happens if I ignore the notice?

You could face wage garnishments, tax refund intercepts, bank levies, interest, and penalties.

#4  Can bankruptcy erase unemployment overpayments?

Yes — if there’s no fraud finding and you list the debt. Fraud debts aren’t dischargeable, but Chapter 13 can create a manageable plan.

#5  Should I list the UIA even if I’m unsure I owe?

Absolutely. Listing them protects you by triggering deadlines for objections and ensuring you’re covered by the automatic stay.

#6  What if the agency keeps collecting after I file bankruptcy?

If the UIA was properly listed, continued collections may violate the automatic stay or discharge order — another reason to have experienced counsel on your side.

Still unsure what to do about a UIA overpayment notice? That’s where expert guidance can make all the difference.

Why Choose Acclaim Legal Services for Michigan UIA Collection Help

Facing government collections — especially for benefits you received in good faith — can feel overwhelming. At Acclaim Legal Services, we’ve helped thousands of Michiganders work toward financial stability and a fresh start.

Here’s what sets us apart:

• In-Depth Michigan Knowledge: We understand Michigan unemployment and bankruptcy laws, so you don’t have to navigate them alone.
• Compassionate Support: We know financial hardship isn’t a choice. You’ll be treated with respect and empathy from start to finish.
• Clear, Practical Solutions: From waiver requests to Chapter 7 or 13 bankruptcy, we’ll help you find the best fit for your goals.
• Thorough, Lasting Protection: We make sure every creditor — including the UIA and Attorney General — is properly listed, so nothing falls through the cracks.

Your peace of mind is our priority. We’ll take the time to explain your options clearly, walk you through each stage, and support you from start to finish.

Next Steps: Protect Yourself from Michigan Unemployment Collections

1. Log into MiWAM after September 12 to review your account.
2. Save every notice or letter from the UIA.
3. Contact us as soon as possible to explore waivers or bankruptcy protections.

Don’t wait for garnishments to hit your paycheck or bank account. Our experienced Michigan bankruptcy attorneys can explain your options, stop collections, and help you move forward with confidence. Call us today at 866-261-8282.  Schedule a free, confidential consultation below— your future is worth protecting.

Take the first step toward peace of mind.

We’ll connect you with a debt relief attorney for a free, no-pressure consultation.

This article is for general informational purposes only and doesn’t constitute legal advice. For advice about your situation, please contact an attorney.