Legal Question in Bankruptcy in California

Re: keeping workers comp reward during bankruptcy

Take a look at Cal. Code of Civil Procedure section 703.140. The award likely would qualify under both subds. (10)(C) and (11)(D), and maybe (11)(E).

"(10) The debtor's right to receive any of the following: . . . (C)A disability, illness, or unemployment benefit."

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"(11) The debtor's right to receive, or property that is traceable to, any of the following: . . . (D) A payment, not to exceed seventeen thousand four hundred twenty-five dollars ($17,425), on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent."

To the extent that it is for future wages, (11)(E) would apply:

"A payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor."