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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I live in Southern California in Ventura County. I am considering

Resolved Question:

I live in Southern California in Ventura County. I am considering BK and I am expecting a workman's compensation settlement very soon.

My question is two part: 1. Is my Workman's Compensation settlement exempt and excluded from BK? 2. If so, does it matter whether I choose a buyout or elect to receive periodic payments with future medical?

I am in debt 90K - all on credit cards. I am partially disabled and unable to do my previous job. I want to get a fresh start and be able to have money in the bank to support myself while I seek a new career. My settlement will be somewhere between 45K and 75K or so.

It's very important for me to get a 100% correct answer. I interviewed a BK attorney and it didn't know... He said "You should be okay." 'Should' doesn't make me feel comfortable to use him...

Thank you so much for your help!!

Sean
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.
Hello,

Thank you for your question. I am happy to assist you.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by JustAnswer.com and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open and nonconfidential forum.

That statement "You should be okay" would frighten me as well.

Workers compensation settlement is exempt and is excluded from a bankruptcy in California. Here is the statute:
http://
codes.lp.findlaw.com/cacode/CCP/3/2/9/d2/4/3/s704.160

Here are a list of the exemptions for California:
http://www.bankruptcyinformation.com/CA_exemp.htm




Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.

Customer: replied 6 years ago.

Thanks for the quick response. I have seen these links before but I need a little more detail. Sorry, it's a little confusing to me and this is a major event for me in my life so I want to get it 100% right.

 

The settlement would be considered permanent disability benefits - the code 704.160 mentions temporary benefits "before payment" but not permanent.

 

Does it matter whether I choose to receive periodic payments with future medical or if I choose a lump sum buyout? I'm most likely going to choose the buyout.

 

If lump sum is okay, do I need to deposit it into a specially vested account? How do you file for exemptions? Is it a special form you use or something? Can the creditor dispute an exemption and is it subject to any interpretation?

 

Does the timing of my settlement in relation to my BK filing have any impact?

 

Thanks so much in advance!

Expert:  Ellen replied 6 years ago.

The settlement would be considered permanent disability benefits - the code 704.160 mentions temporary benefits "before payment" but not permanent.

it is included as exempt

 

Does it matter whether I choose to receive periodic payments with future medical or if I choose a lump sum buyout? I'm most likely going to choose the buyout.

no

 

If lump sum is okay, do I need to deposit it into a specially vested account?

yes you need to keep the money segregated

 

How do you file for exemptions? Is it a special form you use or something?

it is part of your bankruptcy petition

 

Can the creditor dispute an exemption and is it subject to any interpretation?

everything can be disputed

 

Does the timing of my settlement in relation to my BK filing have any impact?

no

 

I suggest that you meet with a local experienced bankruptcy attorney. You will want to be certain that your lawyer specializes in bankruptcy.

 

It has been my pleasure to work with you

Thank you in advance for remembering to click accept. If you experience difficulty using the accept button, please let me know as JustAnswer pays me for my time only if the "accept" registers..

Please let me know if I can assist you in the future by requesting me directly.

Ellen and 4 other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.
Thank you so much! Very helpful!