Most likely NO, but filing for bankruptcy will still improve your ability to resolve the overpayment.
If you received benefit payments that you were not eligible to receive, regardless of the cause, you must repay the full amount of the overpayment to the Minnesota Unemployment Insurance Program. The amount you are responsible for repaying includes any amounts withheld for child support, state tax withholding and federal tax withholding. Despite any financial difficulties you may be having, Minnesota law does not allow for waiver of overpayments on unemployment insurance. This includes a discharge through bankruptcy.
Then why file bankruptcy if you are still going to be on the hook for the amount of your overpayment? Because your bankruptcy will not only wipe away a variety of your other debts, filing will temporary halt any current wage garnishments and bank levies, and provide an opportunity to negotiate a payment plan with the Minnesota Department of Employment and Economic Development. After filing, you and your attorney can discuss the ability to work with the Department in coming up with a payment plan that you are more financially able to execute. The payment plan will allow for payments overtime, potentially decrease the amount of penalties and interest you are required to pay, and undoubtedly leave you with more financial freedom to focus on rebuilding your credit.
Under very limited circumstances an unemployment overpayment may be discharged in bankruptcy if there was no actual fraud, there was a mistake on the part of the state or the overpayment amount is very minimal and the state chooses not to file an adversary.