Injury Settlement Funds in Bankruptcy are yours to keep if you file a chapter 7. Sometimes a work injury and a bankruptcy go hand in hand. Perhaps the claim was initially denied or the disability payments that you were receiving didn’t match what you were making before the injury. If this is you you’re in luck as injury settlement funds in bankruptcy are exempt under bankruptcy law.
Bankruptcy Exemptions and Personal Injury
When you file a bankruptcy case you are involved in a with federal law. Under federal bankruptcy law certain property may or may not be subject to seizure by the bankruptcy court. Depending on what chapter of bankruptcy you file and how the assets have been handled determines how the Court treats the asset.
In an Oklahoma chapter 7 Bankruptcy, assets that you own will be considered either exempt assets v. non-exempt assets. If the asset is non-exempt the bankruptcy trustee can sell it and use the proceeds from its sale. On the other hand, an exempt asset can not be sold to satisfy creditor claims and that asset remains with you when you file your bankruptcy case. Fortunately injury settlement funds in bankruptcy are exempt.
How Much Money is Exempt
In Oklahoma, your settlement from an Oklahoma work comp Injury case is exempt up-to $50,000. Also, In an Oklahoma personal injury settlement the same cap of $50,000. applies. The real trap in this exemption is what you do with the settlement proceeds once received and answering this question will be left for another Tulsa Injury Lawyers blog post.
Injured at Work we Can Help
If you’ve been injured at work dont go it alone. A work injury can cost you your health and maybe lead to the type of financial problems that force you into a bankruptcy. We can help you make sure that if you have a workers compensation award and you have to file a chapter 7 that the injury settlement funds in bankruptcy are safe.