Legal Question in Bankruptcy in California
Bankruptcy & Worker's Compensation
I am currently disabled (rec'vng W.C. temporary benefits) and considering bankruptcy. If I file, can creditors "attach" or garnish any future settlement I might receive? Or is work injury settlement exempt from the "assets" listing filed in bankruptcy cases? If I do NOT file, can creditors then file a claim against any future settlement I might receive?
1 Answer from Attorneys
Bankruptcy & Workers' Comp--REPLY
Workers' Compensation awards are exempt from collection in bankruptcy. The only exception I am aware of is for alimony or child support, where if you owed that kind of obligation, they could take a specified portion of your award.
I believe the same exemptions apply outside of bankruptcy as well.
If you need further assistance and would like a more comprehensive consultation, please visit my website and give me a call. Best Wishes, Mark
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