You can put overpayments of EDD or Unemployment in to a chapter 7 bankruptcy and discharge the debt. EDD overpayments happen when people are collecting unemployment when possibly working or other issues that allow the EDD to come after you. They can garnish wages to recoup the overpayment. These overpayments by the EDD are absolutely dischargeable in Chapter 7 bankruptcy. If you make too much money to file chapter 7 bankruptcy 50k for an individual, 63k if you are married, then you can discharge them in a chapter 13 bankruptcy as well.