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TAMPA, FL, August 03, 2014 /24-7PressRelease/ -- The Tampa bankruptcy attorneys at Clark & Washington wish to inform the public of the implications on worker's compensation when filing for bankruptcy. There are many exemptions to utilize when filing for bankruptcy allotted under Florida law, and workers' compensation benefits are included.
Workers' Compensation & Bankruptcy
When you file for bankruptcy, most of your property will be utilized to settle your debts, unless a piece of property falls under one of the Florida exemptions. Workers compensation benefits and settlement money are exempt from all creditors, levies, attachments and recovery by creditors when you file for bankruptcy.
This exemption has been applied, tried and upheld by the Florida Supreme Court. It is the opinion of the Florida Supreme Court that when a worker is injured and files for bankruptcy, any proceeds flowing from a worker's compensation settlement arrangement are to remain exempt from creditors.
There are exceptions to the status quo however. Whenever you receive settlement funds from a workers' compensation claim, it would be prudent to keep those funds in a separate account and never use the funds as security for any kind of debt. In the event you file for bankruptcy and you utilized funds from a worker's compensation settlement to pledge as security for any kind of debt, the funds are likely to lose their exempt status.
If you are ever considering filing for bankruptcy, and you are planning on filing a workers' compensation claim or have filed one in the past and are currently receiving settlement funds from that claim, you need to contact an experienced Tampa bankruptcy lawyer to facilitate the process.
For more information on worker's compensation and bankruptcy, visit http://www.cw13fl.com.
About Clark & Washington:
Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.
For more information, visit http://www.cw13fl.com.
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