How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask WALLSTREETESQ Your Own Question
WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17222
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
16356563
Type Your Bankruptcy Law Question Here...
WALLSTREETESQ is online now
A new question is answered every 9 seconds

Can a small business owner file bankruptcy on an award to an

This answer was rated:

Can a small business owner file bankruptcy on an award to an employee issued by the Worker's Compensation Appeals board? He has no Worker's Compensation Insurance.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

If the corporation that is liable for the award file a bankruptcy the workers comp award would be discharged as well.

WALLSTREETESQ :

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

Customer:

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?

WALLSTREETESQ :

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.




WALLSTREETESQ :

You would not have to pay the employee

WALLSTREETESQ :

It would be charged off.

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask

WALLSTREETESQ :

If satisfied please press the accept button so we can receive credit.

WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you