Does Bankruptcy Affect Workers' Compensation Benefits?

In short, workers' compensation benefits are not considered an asset of the debtor and are protected.  The workers' compensation benefits would be listed in the bankruptcy petition but would be a fully protected exempt asset based on California law.

California Code of Civil Procedure section 703.140 (b)(10) gives the exemptions for the debtor's right to receive any of the following: social security benefits, unemployment compensations, local public assistance benefits, veteran's benefits, or disability, illness or unemployment benefits.

California Code of Civil Procedure section 704.160 also gives a similar exemption, stating that Workers' Compensation benefits/settlements are exempt, subject to exceptions made for domestic support obligations (child support).

If you have any questions about bankruptcy please call 1st California Law at (949) 735-8499 for a free attorney consultation.

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