Workers Comp and Bankruptcy in Oklahoma sometimes go hand in hand. The reason this is that in some cases the work injury causes you severe financial distress. Although you get paid temporary disability while you heal its just not always enough. The reason is that the amount of money you take in under workers comp may be less than what you normally make. As the bills fall further and further behind you may find that bankruptcy is your only option.
Temporary Disability in Bankruptcy
If you’re considering bankruptcy and you’re on workers compensation the disability payments are exempt in bankruptcy. This means that you will not loose the disability payments that you’re getting from your employer. The TTD payments are treated a lot like regular earnings and you can use the payments for your day to day expenses.
Disability and Means Testing in Bankruptcy
Which bankruptcy you file depends on how much income you earn. If you normally make above the income limit for filing a chapter 7 that will change if you get injured at work. This is because the amount of disability you get under workers compensation is capped at a certain limit. This limit is below the income required to qualify for a chapter 7. Because the bankruptcy means test focuses on your latest six months of income this may be just what you need to help you qualify for chapter 7.
Permanent Partial Disability Award
At the conclusion of your Oklahoma work injury case you get a settlement check. This is called a permanent partial disability payment. This is intended to compensate you for partial disability. Because its a disability settlement its exempt up to a certain amount. This is fifty thousand. The important thing is that you treat the settlement funds separately. If you fail to do this and the funds are commingled with non exempt money you could loos it
Oklahoma Bankruptcy Lawyer Near You
Workers Comp and Bankruptcy in Oklahoma sometimes go hand in hand. Even better sometimes a work injury can help you qualify for chapter 7 bankruptcy. IF your facing financial problems we can help you. Call today and get a free and confidential consultation with our bankruptcy attorneys in Tulsa.