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  1. #1
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    Jun 2006
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    8

    Default Bankruptcy, With a Workers Compensation Settlement for Future Medical

    My question involves bankruptcy in the state of: Ca.

    My mother received a settlement of $75,000.00 to pay for her lifetime medical from a worker compensation case that was settled. She now need to file bankruptcy due to the fact she is no longer able to work, and had unpaid unsecured credit card bills, that she can no longer pay off. Is the money from the worker compensation case ( future medical- $75,000.00) consider an asset by the court, will she lose her money so the court will pay off the unsecured debt or is the settlement money exempt.

    Also her home is homesteaded, she is 61 years of age, & disabled, can a credit card judgment lien be used to force her out of her home.

  2. #2
    Join Date
    Sep 2005
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    Default Re: Bankruptcy, With a Workers Compensation Settlement for Future Medical

    Are you talking about a MSA (Medicare Set-Aside), or $75,000 sitting in her savings account?

  3. #3
    Join Date
    Jun 2006
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    8

    Default Re: Bankruptcy, With a Workers Compensation Settlement for Future Medical

    Quote Quoting Mr. Knowitall
    View Post
    Are you talking about a MSA (Medicare Set-Aside), or $75,000 sitting in her savings account?


    The workers compensation lawyer told her she could put the check in her own personal separate checking account with no other money,and nobody would be able to touch it if they sued her and got a judgment.

  4. #4
    Join Date
    Mar 2005
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    Michigan
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    28,906

    Default Re: Bankruptcy, With a Workers Compensation Settlement for Future Medical

    Here's the state law exemption. (See also Sec. 703.140(b)(10).)
    Quote Quoting California Code of Civil Procedure, Sec. 704.160.
    (a) Except as provided by Chapter 1 (commencing with Section 4900) of Part 3 of Division 4 of the Labor Code, before payment, a claim for workers' compensation or workers' compensation awarded or adjudged is exempt without making a claim. Except as specified in subdivision (b), after payment, the award is exempt.

    (b) Notwithstanding any other provision of law, during the payment of workers' compensation temporary disability benefits described in subdivision (a) to a support judgment debtor, the support judgment creditor may, through the appropriate local child support agency, seek to apply the workers' compensation temporary disability benefit payment to satisfy the support judgment as provided by Section 17404 of the Family Code.

    (c) Notwithstanding any other provision of law, during the payment of workers' compensation temporary disability benefits described in subdivision (a) to a support judgment debtor under a support judgment, including a judgment for reimbursement of public assistance, the judgment creditor may, directly or through the appropriate local child support agency, seek to apply the temporary disability benefit payments to satisfy the support judgment by an earnings assignment order for support, as defined in Section 5208 of the Family Code, or any other applicable enforcement procedure. The amount to be withheld pursuant to the earnings assignment order for support or other enforcement procedure shall be 25 percent of the amount of each periodic payment or any lower amount specified in writing by the judgment creditor or court order, rounded down to the nearest dollar. Otherwise, the amount to be withheld shall be the amount the court determines under subdivision (c) of Section 703.070. The paying entity may deduct from each payment made pursuant to an order assigning earnings under this subdivision an amount reflecting the actual cost of administration of this assignment, up to two dollars ($2) for each payment.

    (d) Unless the provision or context otherwise requires, the following definitions govern the construction of this section.
    [indent](1) "Judgment debtor" or "support judgment debtor" means a person who is owing a duty of support.

    (2) "Judgment creditor" or "support judgment creditor" means the person to whom support has been ordered to be paid.

    (3) "Support" refers to an obligation owing on behalf of a child, spouse, or family; or an amount owing pursuant to Section 17402 of the Family Code. It also includes past due support or arrearage when it exists.
    The potential issue raised by putting the money into an ordinary checking account, into which other revenue is deposited and out of which bills are paid, is establishing what portion of the money is exempt.

  5. #5
    Join Date
    Apr 2011
    Posts
    1

    Default Re: Bankruptcy, With a Workers Compensation Settlement for Future Medical

    According to the law, your place of work is responsible for providing a safe working environment. This means that if you are disabled and have suffered an injury at work, by law you are entitled to seek compensation. This should include help with medical bills and a re-imbursement of earnings lost due to the injury and time off work. forex derivatives

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