QUESTION
Will workers compensation count as income? How?
Asked on May 20th, 2015 on Bankruptcy - New Jersey
More details to this question:
In filing for bankruptcy, should I include workers compensation as income?
8 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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That would be a yes.
Answered on Aug 31st, 2015 at 8:01 PM
That would be a yes.
Answered on Aug 31st, 2015 at 8:01 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Yes and no. The part of workers compensation that is paid to replace wages is income. The part of workers compensation that is paid for personal injury isn't income. At the end of the year you'll get a Form 1099 which will break down the taxable and nontaxable amounts.
Answered on May 25th, 2015 at 4:30 AM
Yes, it will be included as income. No worries!
Answered on May 20th, 2015 at 3:47 PM
Workers compensation benefits are income if they are paid out to you on a monthly basis. If you received a lump sum distribution, you might not include that as income but you would still need to disclose it on your Means Test.
Answered on May 20th, 2015 at 3:22 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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First things first: retain an experienced bankruptcy lawyer. It's almost always worth it. That said, your lawyer's advice on how and where to disclose the WC is very important. Some of it may be subject to exemption, for example, and therefore be beyond the reach of creditors and the Trustee. It may count on the Means Test, determining whether you can file under Ch. 7, or must file under Ch. 13. Good Luck. Get a lawyer.
Answered on May 20th, 2015 at 3:02 PM
Deborah F. Bowinski
Yes, workers compensation counts as income for both Schedule I and for the Means Test.
Answered on May 20th, 2015 at 2:02 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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You have to include it but you maybe able to claim it as NON-CMI. Speak to a lawyer in your jurisdiction.
Answered on May 20th, 2015 at 1:01 PM