Should I tell my Bankruptcy Attorney About My Workers Compensation Case?

by NJLawyer | Jul 3, 2020 | Accident Cases, Work Injury

When someone suffers a work accident, their income may be significantly reduced.  New Jersey Workers Compensation insurance provides three fundamental benefits, medical treatment, temporary disability benefits, and a permanency award.  The medical treatment is limited to authorized (designated) medical professionals except for emergency care and if the employer (or insurance carrier) fails to designate a treating doctor or denies the occurrence of the accident.  Temporary benefits are 70% of an injured worker’s Gross Salary but are capped at maximum rates depending on the year of the accident.  Permanency benefits are normally only awarded after treatment is completed and a 26 week waiting period and permanency examinations are conducted and a settlement agreement reached or a trial conducted and a judicial decision rendered.  So, if the injured worker was making significantly more than the maximum temporary disability rate, there may be a need to file for Bankruptcy protection.

Bankruptcy exists to provide individuals with a fresh start by eliminating debt.  The Bankruptcy proceeding is a serious undertaking conducted in Federal Court and under the watchful eye of a Bankruptcy Trustee whose job is to ensure that creditor rights are protected by discovering all assets of the Bankruptcy applicant that could be used to pay creditors.  A consultation with an attorney who handles Bankruptcy matters is essential to a smooth bankruptcy proceeding.