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Workers’ Compensation and Bankruptcy

A person injured at their place of work may be allowed to file for workers’ compensation, which provides important financial protection from the expenses of an injury. However, bankruptcy can have a substantial impact on these compensation packages. There are some exemptions available in the state of Alabama that can help protect most of these benefits.

If you need legal assistance managing workers’ compensation exemptions during bankruptcy, we may be able to help. For more information regarding your rights, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, at (205) 324-4000 today.

Exemptions for Workers’ Compensation

Workers’ compensation often consists of multiple components built into a single package. This compensation consists of coverage for issues such as long- or short-term disability, time away from work, and even coverage for separate expenses such as travel. According to Alabama’s bankruptcy exemptions, the following have legal protections during bankruptcy:

  • Workers’ compensation claims
  • Disability proceeds up to $250
  • 75% of earned but unpaid wages

While this compensation is generally protected, other expenses may not be protected by the law. Depending on how these payments are linked to compensation claims, they may or may not apply under the compensation claim exemption. Unfortunately, if a person has been permanently injured, they may not be able to collect their full disability proceeds.

Contact Us

If you have been injured at work and have received compensation, this money may be impacted by bankruptcy garnishments and collection. To learn more about your exemption options and how a bankruptcy attorney can help protect your money, contact the Birmingham bankruptcy attorneys of Greenway Bankruptcy Law, LLC, today by calling (205) 324-4000.

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Greenway Bankruptcy Law, LLC
505 20th St N #1220
Birmingham, AL, 35203
Phone: (205) 324-4000
Tuscaloosa: (205) 737-3350
Gadsden: (256) 467-6650

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Greenway Bankruptcy Law, LLC All rights reserved. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Greenway Bankruptcy Law, LLC 505 20th St N #1220, Birmingham, AL, 35203 | Phone Number: (205) 324-4000