Many people who file bankruptcy have a workman’s comp claim. Their other debts driving to bankruptcy for debt solutions, but client often are concerned that the bankruptcy will cause the client to lose the money coming to them from their workman’s compensation claim.
Good news! Florida provides an exemption for workman’s compensation claims. Florida statute 769.05 prevents courts from garnishing or executing against the funds received. This statute provides an exemption in bankruptcy that protects the asset from seizure by a chapter 7 trustee and consideration for an increase in plan payment by the chapter 13 trustee.
This exemption has been strengthened by the Florida Supreme Court in Broward v. Jacksonville Medical Center held that the protection prevented judgment creditors and trustees tried to access the workman’s comp funds once the claimant received the claim funds and deposited them in a bank account. Broward v. Jacksonville Medical Center, 690 So.2d 589 (Fla. 1997). The important thing to note was that the funds were not commingled. This means the money was not deposited into a bank account with other money, so it is important to deposit the funds in its own account!
So if you are exploring bankruptcy, don’t worry because your workman’s comp claim is protected! To find out more about bankruptcy and what it can do to help you regain control of your financial situation, call to schedule your free consultation (305) 278-0811.