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overpayment

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chadkan

Junior Member
I got two severence checks from a company a year and a half ago. Times were tough and i was about to lose my house so I rolled the dice and they just caught it. Is there a time limited that they have to find the mistake and legaly sue me for it? I know I was in the wrong but I also didnt want to loose my house and be out on the street. If they take me to court and they win (they will) what can they do to get their money back if I dont have it? Is there a certain amount of money that can make it a more serious offense? Can they garnish my pay from future jobs and current unemployment? Can they get money from my current house. This all happened in michigan if that matters.

Chad
 


Zigner

Senior Member, Non-Attorney
I got two severence checks from a company a year and a half ago. Times were tough and i was about to lose my house so I rolled the dice and they just caught it. Is there a time limited that they have to find the mistake and legaly sue me for it? I know I was in the wrong but I also didnt want to loose my house and be out on the street. If they take me to court and they win (they will) what can they do to get their money back if I dont have it? Is there a certain amount of money that can make it a more serious offense? Can they garnish my pay from future jobs and current unemployment? Can they get money from my current house. This all happened in michigan if that matters.

Chad
Yes, there is a time limit...but it is greater than 18 months.
They can sue you if you don't repay it.

<commentary>
So, you felt it was FINE to knowingly take money from somebody else just because you needed it? That's pretty much what a common thief does too...
</commentary>
 

chadkan

Junior Member
severence overpayment

I do agree to pay but what if I cant pay it all at once? Can they refuse a payment plan that I can offer? I will pay them as fast as I can but can I get jail time even though I make every effort to pay it back? Also do I have to pay only what I got not the gross check? They tell me I have to pay the whole thing back and I have to deal with the taxes but I never got paid that money. Thanks

Yes, there is a time limit...but it is greater than 18 months.
They can sue you if you don't repay it.
 

swalsh411

Senior Member
In this country you don't go to jail for owing money. I don't know where you might have gotten that idea.

They do not have to accept any sort of payment plan from you. They would be smart to if they want their money back and don't want to have to go to court, but they don't have to. If they do go to court and get a judgement they can can garnish your current pay.

Since the payment was from a prior year, you owe back the gross. That doesn't make sense to a lot of people but it's true.
 

chadkan

Junior Member
overpay of severence

I know they can garnish my wages but I am on unemployment so can they garnish that? If they cant, can they go after my property. I do plan on paying them back when I get working and I hope they can accept that.
 

Ohiogal

Queen Bee
I do agree to pay but what if I cant pay it all at once? Can they refuse a payment plan that I can offer? I will pay them as fast as I can but can I get jail time even though I make every effort to pay it back? Also do I have to pay only what I got not the gross check? They tell me I have to pay the whole thing back and I have to deal with the taxes but I never got paid that money. Thanks

Yes, there is a time limit...but it is greater than 18 months.
They can sue you if you don't repay it.
You can get jail time if you are convicted of theft. Which is what you committed. YOU stole money. They can demand it back immediately and do not have to accept a payment plan.

As for the tax money, You got the benefit of the tax money. It was considered in your income tax filings. Did you get a refund or was it applied towards an outstanding tax balance? You got the benefit of the taxes paid on that money.
 

Ohiogal

Queen Bee
I know they can garnish my wages but I am on unemployment so can they garnish that? If they cant, can they go after my property. I do plan on paying them back when I get working and I hope they can accept that.
Can you accept being arrested, charged with theft (depending on the amount possibly grand theft), going to jail and having a criminal record?
 

latigo

Senior Member
Can you accept being arrested, charged with theft (depending on the amount possibly grand theft), going to jail and having a criminal record?
Well, I must respectfully disagree with that panic invoking theory. The sky ain’t about to fall on the OP! Why?

Because it is patently clear that the former employer is not treating the cashing of the second check as a criminal conversion, but as money due and owing for which demands for payment are being made.

If anyone believes that after 18 months the employer can now go to the local district attorney and demand that criminal charges be filed and thus use the DA’s office as a bill collector, they’ve had scarce practical experience in the practice of criminal law – prosecuting or defending would-be criminals.

Moreover, even had the employer approached the DA in a timely fashion before having made demands for payment and thus treating the incident as a debt, there is a serious question that the prosecution could prove the necessary element of scienter.

Sure the OP admits to us that he reasoned that the check was issued in error and knowingly cashed it.

But his defense attorney wouldn’t permit him to do make such an admission of criminal intent and for two basic reasons:

(1) He cannot be required to do so, and

(2) The OP was not privy to possible severance policy changes and thus has no actual knowledge that the check was in fact issued in error.

And the DA knows this as well as the defense attorney.
 

antrc170

Member
I agree with Latigo. OP, you're not going to jail. You do need to repay the money, the gross amount. When the company finds the error, they have three choices.
1) They find it, but calculate it would be more costly to recover than it is worth, in which case you get away with it.

2) They find out, and ask you for the funds in a manner that you can set up a payment plan.

3) They find out and sue. The courts awards them the judgement and you are stuck with figuring out a way to pay them back. Most likely they would accept a payment plan. If not then the company will have to go back to court to file for garnishment, or place a lien on your property. If the courts garnish your wages, they can only garnish a certain percentage.
 

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