Personal Injury Settlement & Workers Comp Settlement?

[metoo]

I'm close to filing a 7 in Ohio. I just got hurt on the job and will likely end up with a settlement from workers comp and settlement for a personal injury suit. Both of these will take quite a while to hash out. Even if I wait 3-4 months to file I would guess actual settlements could easily be a year or more away. I don't anticipate settlement numbers to be large enough to pay off all of my debt.

Will the fact that settlements are likely coming in the future block the BK until they are worked out?

Would there be a way to put the $ in a trust used to pay medical bills in the future? Maybe I could use the $ for all family medical expenses down the road.

Would there be a way to take the settlements as structured settlements where they would count the $ as income but not take it all. Or maybe figure out a cash value of the structured settlement and only have to pay that amount to the trustee and keep the rest as it comes in?

[HHM]

It won't block your discahrge, but if those settlements, or any portion of them are non-exempt, the trustee could keep your case open.
Workers Comp is usually 100% exempt, Personal Injury suits it will depend, some states have some funky wording that only exempts the amount of the judgment that covers actual medical expenses, the rest being non exempt.

[jribe]

wait, i don't understand. Were you literally just hurt on the job today? Or are you now down with your treatment after being off of work?

also, just as an FYI- unless there was disfigurement or 100% disability (not partial) there typically are not cash settlements in worker's comp cases. Best case is usually on going payment for medical expenses.

Just wondering where you are in this process, and if someone got you thinking you should get some payment...


But to answer your question- the case typically wouldn't be held open; and in most states a "personal injury" settlement is exempt. You'll want to check your states exemptions and also see if WC is included in that.

Also- it is typically only going to be inheritances or winnings of some sort that would be taken by a trustee within 6 months of your discharge.

Obviously if someone is injured- and is awarded a settlement; the trustee can't just take the funds. There's a reason the money is awarded- as i said earlier- typically because of disfigurement or a disability that usually requires ongoing treatment.

good luck

I'm close to filing a 7 in Ohio. I just got hurt on the job and will likely end up with a settlement from workers comp and settlement for a personal injury suit. Both of these will take quite a while to hash out. Even if I wait 3-4 months to file I would guess actual settlements could easily be a year or more away. I don't anticipate settlement numbers to be large enough to pay off all of my debt.

Will the fact that settlements are likely coming in the future block the BK until they are worked out?

Would there be a way to put the $ in a trust used to pay medical bills in the future? Maybe I could use the $ for all family medical expenses down the road.

Would there be a way to take the settlements as structured settlements where they would count the $ as income but not take it all. Or maybe figure out a cash value of the structured settlement and only have to pay that amount to the trustee and keep the rest as it comes in?

[HHM]

Also- it is typically only going to be inheritances or winnings of some sort that would be taken by a trustee within 6 months of your discharge.

Just to clarify here for a second, the 6 month is not an issue, if the "event" that gave rise to the workers comp and personal injury claims occurred before the person filed bankruptcy, it doesn't matter when the claims are actually resolved (paid), the claims are part of the bankruptcy.

[metoo]

Hurt a few months ago, on temporary total right now. Not disfigured but will likely have some pain the rest of my life. Attorney made it sound like after going to doctors visits/physical therapy/a round or 2 of surgery/more physical therapy, they will likely offer to cut a check to have you stop getting treatment and go away.

If that is the case and it is not sheltered in a BK I was thinking that they might let me set up something like a health savings account and only use the $ for future medical expenses.