Legal Question in Bankruptcy in California

Spouse's Assets in Individual Ch. 7--REPLY

A lien cannot be put on your spouse's wages if the creditor was scheduled in your bankruptcy and you received a discharge. If for some reason your wife were jointly liable on that debt (and you say she is not), then the creditor could go after any separate property assets your wife may have. As to the workers comp. question, that is complicated. There are two sets of exemption statutes in California and the answer varies depending on which one you utilize (and this would be determined after a professional analysis of all your assets and liabilities). Under one set, workers' comp awards are totally exempt. Under the other (the one you obviously have been advised on), the award is exempt, but personal injury portions may be limited to $15,000.00 under certain circumstances such as if you purchased something with the award. This is an unclear area of law, and I would have to research it further to give you a definite answer. I do have a case out of Michigan (there are very few cases on this issue) that may help explain how it works. The statute involved there is very similar to the California one I referred to (identical, in fact). If interested, let me know and I will try to attach it in an e-mail to you in the format of your choice. If you need further assistance and live in the L.A. area, please visit my web page and feel free to give me a call. Mark