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What happen to my case if workers compensation carrier fail for bankruptcy ?

Brooklyn, NY |

On my first Workers compensation hearing 06 /14/2013 my attorney informed me that insurance carrier for my employer fail for bankruptcy and this is the reason I cannot collect any compensation.
I was outside of courtroom and my attorney speak to the judge about my case .later he come to me and told me the judge will give me another insurance for my workers compensation claim.the next hearing will be on August with a new insurance carrier. I am not sure that I understand everything wright. Does anybody has a similar situation with insurance bankruptcy issue in the past ? What happen to my workers compensation claim ?

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Attorney answers 4


Even if the carrier is in bankruptcy or what is called liquidation, you rights are protected by the law. The Board has a fund, sometimes called the Liquidation Bureau, to handle such claims. I suspect that at your next hearing, a person will be present representing the entity that will be responsible for handling your claim.

You should work with your attorney to understand that who will be the responsible party so as to insure that you can alert your medical provider and you will know where to send your mileage and other reimbursement request.

Please remember the answer to this question is in general and without knowledge to the specific facts of your case. You should not rely on this answer when making important life decisions and seek a legal opinion based on your particular facts and circumstances.


This is an excellent conversation to have with your Attorney, since he actually knows your case. I am at a loss to understand why you feel that we are smarter than your Attorney, when he has all your facts and we do not.

We offer general concepts, but you should give ALL your facts to a licensed Attorney in your state before you RELY upon any legal advice.


The New York State Liquidation Bureau steps in. It could slow things down.

I am a former federal and State prosecutor and have been doing criminal defense work for over 16 years. I was named to the Super Lawyers list as one of the top attorneys in New York for 2012 and 2013. No more than 5 percent of the lawyers in the state are selected by Super Lawyers. Martindale-Hubbell has given me its highest rating - AV Preeminent - in the areas of Criminal Law, Personal Injury, and Litigation. According to Martindale-Hubbell”AV Preeminent is a significant rating accomplishment - a testament to the fact that a lawyer's peers rank him or her at the highest level of professional excellence." Fewer than 8% of attorneys achieve an AV Preeminent rating. I also have the highest ranking – “superb” – on Avvo. The above answer, and any follow up comments or emails is for informational purposes only and not meant as legal advice.


Discuss the details with your lawyer who is familiar with your case.

If this answer is helpful, then please mark the helpful button. If this is the best answer, then please indicate it. Thanks. For further information you should see an attorney and discuss the matter completely. If you are in the New York City area, then you can reach me during normal business hours at 718 329 9500 or

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