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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2901
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Is a workers comp lump settlement of $12,000 exempt in a chapter

Customer Question

Is a workers comp lump settlement of $12,000 exempt in a chapter 7 bankruptcy in florida? Tha WC case was pending when the bankruptcy was filed. The case was settled shortly after filing the bankruptcy.
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 4 years ago.

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

Did you disclose the lawsuit in your bankruptcy petition, schedule B?

Terry L. :

and exempt it on Schedule C?

Terry L. :

are you there?

Terry L. :

IT seems as if you are away. If you listed the case on schedule B, and exempted them on Sched C using § 440.22 - (Workers’ compensation benefits are exempt.) then it would be protected. There is some case law that states failure to list and exempt the asset means that the trustee can liquidate it.

Terry L. :

Hope that helps. let me know if you have any other questions. Thanks

Terry L. :

Terry

JACUSTOMER-qcr2jks3- :

Hello,

JACUSTOMER-qcr2jks3- :

I disclosed the case on the Statement of Financial Affairs. I did not include the settlement on the schedules, because had not received it yet. I will ammend to reflect the settlement. Would it fall under #21 (contingentclaims) on schedule B?

Terry L. :

You should amend to list it on schedule B, & C, that is where you list assets (even if unknown) and exemptions. Yes, list it under # 21. on B. thanks

Terry L. :

any other questions?

JACUSTOMER-qcr2jks3- :

And the entire amount of $12,000 will be protected right? Even though it was just received last month after filing?

Terry L. :

If the trustee does not object to your amended B&C , then yes

Terry L. :

any other questions?

JACUSTOMER-qcr2jks3- :

No that's all. Thank you.

Terry L. :

Ok, best of luck to you.

Terry L. :

thank you. Terry

Terry L. :

Let me know if you have any other questions. This question is still open, so please click "accept" and rate a 3 or higher for me to get credit! Thanks