QUESTION
Is Federal Worker's Compensation income included in bankruptcy?
Asked on Aug 20th, 2012 on Bankruptcy - New Jersey
More details to this question:
We are in the process of getting all the paperwork done for bankruptcy. We also have medical bills excess of $150,000. I am on Social Security Disability and also Federal Worker's Compensation. I have read that Social Security Administration is not included in your figures as income; will my worker's compensation be added with my husband's pay? Thanks for your help.
9 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes.
Answered on May 28th, 2013 at 10:08 PM
I believe that, for purposes of the Means Test, the answer is no. This assumes that federal Worker's Comp is a form of disability.
Answered on Aug 23rd, 2012 at 12:54 PM
Barbara A. Fontaine
ALL sources of income must be declared on your bankruptcy petition. Social Security certainly is.
Answered on Aug 23rd, 2012 at 12:53 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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You can claim an exemption for worker's comp benefits.
Answered on Aug 23rd, 2012 at 12:53 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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There are limits on the means test about social security, but schedule I requires that you list all income from all sources.
Answered on Aug 23rd, 2012 at 12:52 PM
Bankruptcy Attorney serving Washington, DC
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Law Offices of Diann C. Moseley
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Yes, workers comp is included as income when calculating your income as part of the means test.
Answered on Aug 23rd, 2012 at 12:51 PM
Glen Edward Ashman
You read incorrectly. All income goes on schedule I including SS and WC.
Answered on Aug 23rd, 2012 at 12:50 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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If the federal workers' compensation is also paid by the social security administration, it would not be included in the calculation of your income to determine if you qualify for a Chapter 7 case. However, if you are asking this question, the level of your income warrants that you get a proper experienced bankruptcy attorney to handle your case. The fact that bankruptcy attorneys get paid at higher levels than most litigation attorneys, for example, should illustrate that filing for bankruptcy protection is not as easy as some people think. However, like an Olympian who wins a gold medal because he practiced, practiced, and practiced, a qualified and experienced bankruptcy attorney (who also practices, practices, and practices) may make your case seem easy, but that doesn't mean it would be easy or even possible to others.
Answered on Aug 23rd, 2012 at 12:50 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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That is correct. The w/c is excluded from the means test.
Answered on Aug 21st, 2012 at 11:23 AM