Under Minnesota law, there is no waiver of overpayments on unemployment insurance. The commissioner must issue a determination of overpayment penalty assessing a penalty equal to 40 percent of the amount overpaid.The court may order that all or part of an overpayment is exempt from recovery. The county must follow the court order. Unemployment overpayments are not dischargeable in bankruptcy, and unlike most debts, they are not forgiven if you file a bankruptcy.