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Loren, Attorney
Category: Business Law
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Experience:  30 years experience representing clients .
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Can IRS or creditors attach workmans compensation payment

Resolved Question:

Can IRS or creditor`s attach workmans compensation payments
Submitted: 7 years ago.
Category: Business Law
Expert:  Loren replied 7 years ago.
Creditor judgements may not attach to workers comp benefits as provided:

AS 23.30.160. Assignment and Exemption of Claims.

(a) An assignment, release, or commutation of compensation or benefits due or payable under this chapter, except as provided by this chapter, is not valid.
(b) Benefits payable under this chapter are exempt from levy to enforce the collection of a debt as provided in AS 09.38 (exemptions). This exemption may not be waived.

As for the IRS. although IRC Section 6334 appears to exempt worker’s compensation benefits, Section 6331(h) allows for a levy of up to 15% on them. Internal Revenue Manual states that the IRS will not levy unemployment benefits, workman’s compensation and public assistance payments.

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