Legal Question in Bankruptcy in Indiana

workers compensation final payoff

i would like to know if a person files bankruptcy in the state of Indiana can the state put a lien on a workers compensation payoff: for example:

bankruptcy filed in court on August 9, 2003

bankruptcy to be clear and final on October 9, 2003

received PPI final compensation paperwork for work related injury on August 10, 2003 (have not signed paperwork)

If an individual chooses to postpone signing final payoff after October 9, 2003-is the individual legally bound to report payoff, and or, can the state bankruptcy court put a lien on payoff.


Asked on 12/19/03, 11:04 am

1 Answer from Attorneys
Eric Southward Southward & Haggard

Re: workers compensation final payoff

I will lightly answer your question, but I would defer you to your attorney who filed your case and if you filed by yourself, you may want to consult with a bankruptcy attorney. In the state of Indiana, generally, the right to receive workers comp benefits is exempt from attachment by a bankruptcy trustee. Even more so since your benefits are coming after you filed bankruptcy. HOWEVER, Indiana law is not interpreted generally to allow 100% exemptions. Therefore, depending upon how much you are to recieve and how much you owe your creditors, a trustee could object and argue that receiving that money is unfair to your creditors due to the amt. owed and received and/or that claiming 100% of the award exempt is in violation of the Indiana Constitution and that some of it should be returned to your creditors. Again, speak to an attorney as what you need to do.

Read more
Answered on 12/19/03, 12:11 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Indiana