Legal Question in Workers Comp in California

Question:

I am receiving a 5 figure workers comp settlement. I plan on opening a segregated bank account with only the WC settlement as a deposit.

Can a Judgment creditor levy the account? I am under the impression that the WC settlement is Exempt from debt collection in California.

Another concern is the word is the Judge in our local court (LA County) has not been considering WC comp money in accounts Exempt even if segregated. Does this sound right?

Thanks


Asked on 3/22/12, 2:06 pm

1 Answer from Attorneys

Nancy Wallace Nancy Wallace Atty at Law

This money is NOT Exempt. We have Child Support attach our client's money daily, before it is paid to them.

So yes, a creditor can attach the account with the proper judgement.

LA County is like the other counties... it will attach your money if you are proven to owe this money.

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Answered on 4/03/12, 12:50 pm


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