Legal Question in Bankruptcy in California

Bankrupcy Question

My fiance has a California Compensation legal issue. A subcontractor got his eye insured in my fianc�s car shop. We are in our third year with this problem and it seems it may go longer. My fianc�s attorney says my fiance is most likely to pay his medical bills. The medical bills my be a six digit number so he is advised to BK. My question is could we get married this year without the BK process affecting my credit? Will owing the state, we will owe federal too? Will the IRS go after me too if I get married with him? Is it a good idea to get married. We have a son and really want to get married.


Asked on 6/18/09, 3:48 pm

2 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Bankrupcy Question

If you were illegally uninsured for workers' compensation, filing for bankruptcy is unlikely to discharge a judgment against you for workers' compensation. The worker would file a claim with the California Uninsured Employers Fund which would pay the claim, and then pursue a judgment against you with the Workers' Compensation Appeals Board. The Department of Industrial Relations, which administers the Uninsured Employers Fund, takes the position that reimbursement claims against illegally uninsured employers are in the nature of fines and are therefore non-dischargeable. I have litigated cases of this nature both before the WCAB and the bankruptcy court.

Whether or not BK is a good idea for you for other reasons, given your financial situation, is a question for a BK attorney. Be sure the attorney defending you before the WCAB has specific experience defending UEF claims as it is often possible to challenge these claims on jurisdictional or other technical grounds.

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Answered on 6/18/09, 3:58 pm
David Gibbs The Gibbs Law Firm, APC

Re: Bankrupcy Question

I have to agree with Attorney Stone. You need someone like Mr. Stone with experience representing you in the WC case. As to bankruptcy, you have a lot going on, and the question of marriage throws a whole new wrinkle into it. You need to sit down with a bankruptcy attorney, review all of the facts of your case, and then make a decision. From the information you post here, I can tell you that your situation is far too complex to resolve with a free consult over the internet.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

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Answered on 6/18/09, 4:07 pm


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