Can't afford to pay workers compensation bill for an old company i no longer run. No money saved and 0 assets unfortunately

Asked about 2 years ago - Hatfield, PA

Hi - I'm getting collection calls from a PA collections law firm for 2 unpaid balances related to a State Workers Comp Audit completed in 2008 and 2010 for a balance of ~$35k and ~$8k, respectively. I do not have the financial means to pay for these bills. I wish I could hire a lawyer but I can't afford one. I haven't paid my mortgage for 8+ months and had 2 cars repo'd and i have ~$100k in student loan debt. I know the student loan debt will never be foregiven. I'm turning 60 this week with massive debt problems and little work. My student loans are in forebearance (have 3 yrs left to push it back). What happens if I am unable pay the SWIF bill because of my current financial situation? They're asking for just $36k to settle and want full payment which is impossible . Any advice helpful!

Attorney answers (4)

  1. Brian W Carter

    Contributor Level 7

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    Answered . If the unpaid balances are for workers' compensation insurance premiums, you first need to determine who is responsible for payment. If the policies were in the name of the business, then your personal assets should be safe so long as you formed the business as an LLC or the like and there is no personal guaranty of payment. If the business has ceased operations you will want to make sure that the business is properly closed with the Dept. of State, otherwise it may be possible to pursue personal assets to satisfy the debt.

    If you are personally liable for payment, then bankruptcy is your most likely avenue of relief. Although extremely rare, it may be possible to have the student loan debt discharged through Chapter 7. You should consult with a bankruptcy attorney. Many are willing to initially meet for free.

  2. Joyce J. Sweinberg

    Pro

    Contributor Level 16

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    Answered . I also think that you should speak to a bankruptcy attorney about this problem. It is a shame to see you in such a position, and I hope things work out for you.

    I will evaluate your case for free. I can also refer you to an attorney to help you if I cannot help you. Joyce... more
  3. George Ellis Corson IV

    Contributor Level 20

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    Answered . That is a tough pickle. BK will probably clear a lot of it, but under most circumstances, an Uninsured WC claim will follow you as long as a tax debt or student loan. A past insurance premium deficiency is probably dischargeable, but an uninsured claim will clearly not be.

    Attorneys are very competitive. Choose the Best Answer so we know who helped you the most.
  4. John M Connell

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    Answered . You should seriously consider talking to a bankruptcy lawyer about what is dischargeable and what is not. The workers comp audit shows money owed for the insurance, not for a claim. The insurance company will have paid any claims by now in most situations. A good Bk lawyer will know what to do next.

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