Injury Settlement Money and Bankruptcy

Bankruptcy and Injury SettlementsCan I Keep the Money I was Awarded in an Injury Settlement:

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 Workers Comp case or some other type personal injury case.

In an Oklahoma chapter 7 Bankruptcy,  assets that you own will be considered either exempt assets v. 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.

In Oklahoma, your settlement from an Oklahoma work comp Injury case is exempt up-to $50,000.  Also,  In an Oklahoma personal injury settlement the same cap of $50,000. applies.  The real trap in this exemption is what you do with the settlement proceeds once received and answering this question will be left for another bankruptcy blog post.

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