Is workers comp exempt in GA ch 13

[dood]

I filed in 2008 and listed an open WC claim. I was told I would need to report to the trustee if I ever settled. What if back benefits are paid and then weekly benefits resumed. My attorney says BK trustee will take all monies needed to pay bankruptcy out in full which would take most if not all of it. I checked Ga statutes and there is one that states that workers comp is exempt totally. I also found a court case about a ch 13 where the lady asked to keep all her WC settlement money. The court decide in her favor sighting the statute I mentioned and said since WC is exempt from creditors, they would not have gotten it had she not filed so they are not entitled to any now. Anyone have any input. Thanks

[Brazzy]

So in other words you want to have your cake and eat it too?

[dood]

It may seem that way to you. Since we filed my spouse has been diagnosed with a disease where he will never work again and has been awarded SSDI. LIkewise I am now on SSDI. We now don't have the income as we did when we filed and it takes all my spouses SSDI just to pay the trustee. We have done without for so long and our home is in need of major repairs. We have paid in 18 mos on a 3yr plan and will continue if we can. There is no guarantee I will ever see any of the WC owed to me, it could take years if at all. I was just wondering if I did make settlement if it was exempt. That is a clear cut question.

[Brazzy]

Odds are that in this situation the trustee will look to get a hold of the funds. It may sound like a bad thing but keep in mind that if they do get these funds it may be able to complete the plan early. If that happens then you will be discharged early and can post one of these in your sig like everyone else.

[dood]

So even if the GA bankruptcy law states that WC is totally exempt the trustee can still take it? Then why call it exempt? States that WC is not transferrable so therefore cannot be accessed by creditors, either before or after a bankruptcy. Is that an accurate statement? I am confused!

[Brazzy]

Think of it this way. Just because they cant doesnt mean they cant try. The trustee usually makes 10% of funds dispersed. So if they can get their hands on funds and disburse it to close out a case... well they are gonna try.

In bankruptcy... and in life I guess people will take chances knowing that those who try to fight them will have to spend money to do so. Its kind lof like that movie fight club where the motor company basically says its cheaper to take choice A than choice B. Despite choice B being the morally sound choice I will choose choice A.

[DeadManCrawling]

Mixing morality and legality is usually a poor choice.

The law generally has little to do with morals. Corporations with executive boards recognize this and use it to their benefit.

You would be wise to do the same. Morals should not be confused with law.

[helpmeout]

So in other words you want to have your cake and eat it too?

Get over yourself already. She's doing nothing wrong in wanting to keep an exempt asset.

[helpmeout]

I filed in 2008 and listed an open WC claim. I was told I would need to report to the trustee if I ever settled. What if back benefits are paid and then weekly benefits resumed. My attorney says BK trustee will take all monies needed to pay bankruptcy out in full which would take most if not all of it. I checked Ga statutes and there is one that states that workers comp is exempt totally. I also found a court case about a ch 13 where the lady asked to keep all her WC settlement money. The court decide in her favor sighting the statute I mentioned and said since WC is exempt from creditors, they would not have gotten it had she not filed so they are not entitled to any now. Anyone have any input. Thanks

Your attorney needs to fight the Trustee taking this money for you. It is an exempt asset and cannot be taken. You also have case history on your side.

Oh, and ignore the troll. It has issues.

[dood]

Thanks for the replys. I do feel that if WC is indeed exempt then I should get to keep it (if I ever get anything). I guess time will tell.

[newbie2]

Thanks for the replys. I do feel that if WC is indeed exempt then I should get to keep it (if I ever get anything). I guess time will tell.

I agree with you. Do what is best for you and your family and ignore the one rude person here.

[HHM]

The reason for the confusion is that there is a difference between WC as an "asset" and WC as "income."

Keep in mind that exemptions are not just for BK, they judicial collection. WC is exempt as an asset in so far as creditors cannot directly garnish or take those funds to satisfy a debt. HOWEVER, in the BK context, WC is a source of regular income. As such, it gets counted in determining if you have any disposable income with which to fund a chapter 13 payment plan.

But generally, a lump sum WC payout should be exempt if that is how the exemption works.