I am involved in a Workers compensation lawsuit in California. How does declaring bankruptcy affect my case, should I wait?

Asked over 1 year ago - Escondido, CA

I have no assets left, everything is gone; the only thing left is a mountain of bills. Can I declare bankruptcy now or do I wait until settlement and if I do can my creditors take my settlement?

Attorney answers (6)

  1. Charles Robert Cleveland Jr.

    Pro

    Contributor Level 10

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    Answered . You can file for bankruptcy now. Make sure that your bankruptcy attorney or whoever is preparing your paperwork specifically uses the exemption for workers compensation disability benefits When completing your schedules for the bankruptcy petition. Unfortunately I have had a great many clients go bankrupt while in the Worker's Compensation system.

  2. David E Snapp

    Contributor Level 6

    3

    Lawyers agree

    Answered . You can absolutely file for bankruptcy now. Most Workers' Compensation Attorneys have specific bankruptcy attorneys they work with. I would contact a W.C. attorney for a consultation and ask for a Bankruptcy referral from them. Unfortunately, there are several under trained Bankruptcy attorneys and you want to make sure you get to someone with experience handling W.C. cases.

  3. Bonnie Jean Binder-Wilson

    Pro

    Contributor Level 5

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    Lawyer agrees

    Answered . All of the attorney's answering your question are correct. Make sure that the bankruptcy attorney and the workers' compensation attorney are agreeable to work with each other.

  4. Brett A. Borah

    Contributor Level 20

    Answered . I agree. I also think you should have a workers comp lawyer working on this for you. Call Olga Mandel in La Mesa.

  5. John M Connell

    Pro

    Contributor Level 19

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    Lawyer agrees

    Answered . I agree with the other answer here. A good bankruptcy attorney will know what to do

  6. James Christian Carpenter

    Pro

    Contributor Level 9

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    Lawyer agrees

    Answered . If the bills are related to your work comp claim, you may not need to file bankruptcy at all if you pursue the work comp case. Many states protect workers compensation benefits when you file bankruptcy. Be sure you let your BKY lawyer know you have a workers compensation case, as he/she can advise on whether it is protected or not in your state.

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