Crest Hill Bankruptcy Lawyer Illustrates Workers Compensation Exempt...
Workers compensation money is 100% protected if it is strictly a work injury. There is one exception here and that is for a third-party claim. A third party claim is when you can sue a manufacturer of equipment or somebody else. Let’s say for example you get hurt at work and you are operating the forklift and it turns out the forklift was defective. While the workers compensation portion, whatever you are going to get from your employer for getting hurt, that’s protected. But, if you have a separate cause of action against that forklift company, now that is the same as a personal injury case and we can only protect $15,000. So the secondary lawsuit is called a third party claim. So a lot of times we will have clients who have a workers’ compensation case and we list right in the schedules, workers compensation, no third party claims. We are letting the trustee know right away to not even investigate about this claim. There is nobody else we can sue. There is no third-party claim.
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