Workers Comp and Bankruptcy

by Meagan Kania on March 18, 2011

Will I Lose my Settlement Funds in Bankruptcy:

This deals with a question I have been asked by many of my Bankruptcy clients who are going to or have already been awarded a settlement in a Oklahoma Workers Compensation case or some other type personal injury case.

In an Oklahoma chapter 7 Bankruptcy,  assets that you own will be considered either exempt assets or non-exempt assets.  If the asset is non-exempt the bankruptcy trustee can sell it and use the proceeds from its sale.  On the other hand, an exempt asset can not be sold to satisfy creditor claims and that asset remains with you when you file your bankruptcy case.

Your settlement from an Oklahoma workers compensation claim is exempt up-to $50,000.  Moreover,  In an Oklahoma personal injury settlement the same cap of $50,000. applies.  An important thing to do is to make sure that you list the injury claim in the bankruptcy petition. If you list it I can claim it as an exempt asset protecting it from creditor claims down the road. Another concern is if you have already received the settlement and what you did with it after you got the money.

If you would like to speak to a bankruptcy attorney in Oklahoma about your case call or click today.

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