Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
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If the corporation that is liable for the award file a bankruptcy the workers comp award would be discharged as well.
There are various forms of security used to prevent injury to employees of self-insured employers from being uncompensated, so in many cases the worker could still be compensated, but not by the employer
I don't understand your answer. The small business is an individual dba. Are you saying we have nothing to worry about if the employee is awarded money? Could this be charged off in bankruptcy?
Under a Chapter 7 bankruptcy, workers comp claims are treated the same as wages owed to former employees. The workers comp claims are considered as unsecured creditors against the employer and are not given any priority over creditors.
You would not have to pay the employee
It would be charged off.
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