Help For Michigan COVID Unemployment Payback
One of the Best COVID Unemployment Payback Attorneys in Michigan
Help For Michigan COVID Unemployment Payback
The COVID-19 pandemic created a complex and often confusing landscape for unemployment claims. Consequently, the majority of people in Michigan submitted their claims for unemployment benefits to the Unemployment Insurance Agency (UIA) in good faith, despite changing regulations, as the state encouraged prompt filings.
If you’re a Michigan resident who received these benefits and have now been asked to repay them, our Michigan bankruptcy attorneys at Frego & Associates can assist you. We offer guidance on various legal options available to you, including applying for a waiver or considering bankruptcy protection.
Call 1-800-646-0075 today to schedule a free consultation with our Michigan bankruptcy lawyers.
What is a UIA Unemployment Overpayment?
The COVID-19 pandemic led to a significant increase in unemployment benefits due to federal initiatives like the CARES Act, aimed at offering emergency support and healthcare solutions to individuals, families, and businesses impacted by the COVID-19 crisis of 2020. S.3548 – CARES Act.
The Michigan Unemployment Insurance Agency worked to distribute these funds quickly to a record number of claimants. Around 350,000 Michigan residents received unemployment insurance benefits from the UIA. [1]
However, the speed and scale of this effort, combined with evolving eligibility rules, resulted in a significant number of overpayments. It means that some claimants received benefits for which they were not technically eligible. This could be due to a simple reporting error, a misunderstanding of the rules, or an administrative mistake by the UIA itself.
Now, the UIA is legally obligated under the Michigan Employment Security Act to recover these funds to replenish the state’s Unemployment Insurance Trust Fund. This fund is critical for ensuring that future unemployment benefits are available for workers who need them.
UIA is seeking to recover $2.7 billion from approximately 350,000 people. [1] Receiving a determination notice in the mail or via your MiWAM account can be alarming, but it is the first step in a process you can manage. Do not ignore it; taking proactive steps is necessary.
Michigan UIA Repayment: Key Dates and Details
Understanding the timeline for managing your repayment request from the Michigan Unemployment Insurance Agency (UIA) can help you resolve the issue.
Here are some important dates to be aware of:
- Collections Resumed: The UIA had halted collections on claims filed post-March 1, 2020—this pause ended on September 12, 2025. [2]
- Reminder Issued: You were scheduled to receive a notification by September 9 within your online unemployment insurance accounts on the Michigan Web Account Manager (MiWAM) system. [2]
- Collections Initiated: Wage garnishments, tax refunds, or installment repayment plans may have commenced starting September 29, 2025. [2]
- Follow-Up Collection Notices Issued: Starting September 12, the agency sent out a subsequent collection notice, known as Form 1088. It details the total repayment amount and offers instructions on how to apply for a financial hardship waiver. [1]
What Can You Do if the UIA Claims That You Owe Money?
If you have received a notification from the UIA stating that you owe money due to overpayments, it’s necessary to act promptly and know your options.
Here are the options to consider:
Once you have the overpayment determination, you face a critical decision. You generally have two primary pathways to resolve the issue: appealing the determination or requesting a waiver of repayment.
- Appealing the Determination: An appeal (or protest) is a formal disagreement with the UIA’s finding. You are essentially stating that the agency’s determination is factually or legally incorrect and that you were, in fact, eligible for the benefits you received. If you win your appeal, the overpayment debt is erased.
- Requesting a Waiver: A waiver does not dispute the existence of the overpayment. Instead, it is a request for forgiveness of the debt. You are acknowledging the overpayment occurred but are asking the UIA to waive the repayment requirement, typically on the grounds of financial hardship.
Choosing the right path depends entirely on your circumstances. If you have clear evidence that you were eligible for the benefits and that the UIA’s determination is wrong, an appeal may be your best course of action.
However, if the overpayment was indeed an error (even if it wasn’t your fault), and repaying the amount would cause significant financial distress, a waiver is the more appropriate route. Carefully review your records and the UIA’s reasoning before making a choice.
If you believe the UIA’s determination that you were overpaid is incorrect, you have the right to appeal. An appeal, referred to as a “protest” in Michigan, must be filed within 30 days of the date the determination was issued.
How to File a Protest: The most efficient way to file a protest is through your Michigan Web Account Manager (MiWAM) portal. Log in to your account, find the specific determination under the “Determinations” tab, and select the option to file a protest. You can also file by mail or fax, but using MiWAM provides an immediate record of your submission.
Building Your Case: A successful appeal requires evidence. Your goal is to prove that you met the eligibility requirements for the weeks in question. Gather all relevant documentation, which may include:
- Pay stubs or records of wages earned.
- Emails or other communications with employers.
- Records of your job search activities, if applicable.
- Any correspondence you received from the UIA during the period of your claim.
In your protest, clearly and concisely state why you believe the determination is wrong. Refer to specific facts and evidence. If you need legal support, we can assist you in filing an appeal on your behalf.
If you do not dispute the overpayment but cannot afford to pay it back, requesting a waiver is your primary option. For non-fraudulent overpayments of federal pandemic benefits, you can request a waiver if repayment would be “contrary to equity and good conscience.” For traditional state benefits, you must prove that repayment would impose an extraordinary hardship. In practice, both standards focus on your financial situation.
The UIA has a history of granting these requests. Since July 2021, the agency has waived over $4.35 billion in overpayment debt on more than 407,300 claims, proving that well-documented hardship waivers are frequently approved. [3]
To apply for a waiver, log in to your MiWAM account. The application requires comprehensive details about your household’s monthly income and expenses. Ensure you have all the necessary documents to substantiate your financial hardship claim.
Bankruptcy may be a viable option if you find yourself unable to repay an unemployment overpayment in Michigan, especially if other financial struggles are complicating your situation. Bankruptcy offers a legal avenue to manage overwhelming debt, and may include unemployment overpayments in certain cases.
For individuals, the two most common forms of bankruptcy are Chapter 7 and Chapter 13. Here’s how each can address unemployment overpayments:
- Chapter 7 Bankruptcy: It involves liquidating non-exempt assets to discharge outstanding debts. If you qualify for Chapter 7, your unemployment overpayment debt might be erased, relieving you of the repayment obligation. However, eligibility is determined by a means test, which evaluates your income and expenses.
- Chapter 13 Bankruptcy: It allows you to restructure debts into a manageable repayment schedule, generally lasting three to five years. If you opt for Chapter 13, you can potentially include unemployment overpayments in your repayment plan. It offers the benefit of spreading out your debts over time, making them more manageable month-to-month.
How Our Michigan Bankruptcy Attorney Can Assist You with Unemployment Payback
Frego & Associates prides itself on a team of seasoned professionals who have extensive experience handling cases related to unemployment overpayments and bankruptcy. Our Michigan bankruptcy attorneys are well-versed in the intricacies of Michigan’s unemployment laws and can provide legal assistance, ensuring you understand each step of the process.
Choosing Frego & Associates means partnering with a firm that has been serving Michigan for over 25 years and is committed to supporting your financial recovery.
At Frego & Associates, we offer:
- Experience in Debt Relief: Our local bankruptcy attorneys have a proven track record in helping clients manage and overcome debt.
- Understanding Legal Rights: We educate you on your legal rights and obligations throughout the bankruptcy process, helping you make informed decisions.
- Filing Assistance: We help you through the legal and administrative process of filing for bankruptcy, ensuring all required documentation is accurate and complete.
- Post-Bankruptcy Advice: After the process, our attorneys can provide advice regarding rebuilding credit and improving your financial health.
- Compassionate Support: We approach each case with understanding and empathy, recognizing the personal toll financial difficulties can take.
If you’re facing the challenge of an unemployment payback, don’t hesitate to get a free consultation from our Michigan bankruptcy lawyers at Frego & Associates. We are open now and ready to help you explore your options for a brighter financial future.
To determine if you have a debt with the Unemployment Insurance Agency (UIA), check your correspondence from the UIA account, which may include letters or online account notifications detailing any overpayments or debts. You can also contact the UIA directly for confirmation and details regarding any outstanding amounts.
Yes, it is possible to challenge or contest the UIA’s demand for reimbursement of overpayments. You can request a protest or appeal if you believe the overpayment notice was issued in error. It is vital to submit any appeals or protests within the specified timelines outlined in the notification from the UIA.
In some cases, you may have to repay funds even if the state made the error. Michigan law allows the UIA to recover overpaid benefits regardless of fault. However, you can apply for a waiver, which may exempt you from repayment if you qualify. Review your case and contact the UIA to see if you’re eligible for this waiver.
[1] Roberts, A. (2025, September 30). Do you need to repay pandemic jobless benefits in Michigan? How to check. Detroit Free Press. https://www.freep.com/story/money/business/michigan/2025/09/11/how-to-see-if-you-have-to-repay-unemployment-benefits/86074340007/
[2] Assendelft, N. (2025, September 8). UIA notifies claimants collections will resume this month on overpaid benefits. Michigan Gov. https://www.michigan.gov/leo/news/2025/09/08/uia-notifies-claimants-collections-will-resume-on-overpayments
[3] Haddad, K. (2022, July 25). Michigan issues 7,300 waivers, $2.4M in refunds for unemployment overpayment. WDIV. https://www.clickondetroit.com/consumer/help-me-hank/2022/07/25/michigan-issues-7300-waivers-24m-in-refunds-for-unemployment-overpayment/
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American Bankruptcy Institute
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