Proceeds from personal injury and workers' compensation cases are not exempt from bankruptcy, as they are generally considered assets of the bankrupt estate.
There are distinctions between Chapter 13 and 7, but your lawyer can explain those to you. For the most part, the case would have had to have been listed on the petition and considered by the trustee.
You will likely have to pay something of the proceeds to the trustee if you want the bankruptcy to go forward, but talk to your lawyer handling the bankruptcy.
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This is more a bankruptcy question,but my college has correctly answered your question.
No attorney client relationship has been formed until you sign a representation agreement.
What does 820 ILCS 305/21 mean , "No payment, claim, award or decision under this Act shall be assignable or subject to any lien, attachment or garnishment, or be held liable in any way for any lien, debt, penalty or damages,"
There may be an issue with a claim creating excess disposable income in a Chapter 13 plan, but the plain reading of the statute exempts the claim itself.
Perhaps try asking this question again under the Bankruptcy law heading and you will get more bankruptcy lawyers answering your question.
I do believe my colleagues have answered appropriately, but as WC attorneys, we do not know all of the ins and outs of the bankruptcy laws.