Business & Finance Finance

Bankruptcy and the Injured Illinois Worker

As the economy continues a frustratingly slow recovery from the "Great Recession," many businesses and individuals alike still struggle to keep themselves financially afloat. Its toll is reflected in the continued high-rate of unemployment and ongoing layoffs. A significant effect of this downturn has been a rise in bankruptcy filings. With debt outpacing income, individuals and businesses have increasingly turned to filing for bankruptcy to relieve the financial pressure. For instance, in Illinois approximately 41,000 bankruptcy filings were made in 2007. By 2010, that number had doubled to 82,000. With this upsurge comes a growing concern for the many Illinois workers who are receiving or are in the process of filing for workers' compensation benefits. Whether they personally or their employer is declaring bankruptcy, the question is the same: "How will bankruptcy affect my workers' compensation benefits?"

Personal Bankruptcy

When an individual files for bankruptcy in Illinois, their assets and income are taken into consideration. These items are used to qualify them for eligibility, to choose the type of bankruptcy to be filed, and to determine what must be sold and/or paid to creditors. If you have or are filing for workers' compensation benefits, you may be worried that this amount will disqualify you or that your award payment will be used to pay off your debts. As many injured workers facing bankruptcy are doing so as a result of their injury, this would be a state of "out of the frying pan, into the fire." Thankfully, the state of Illinois considers workers' compensation benefits to be exempt property. If you have received these benefits under Illinois law, they are protected from attachment or garnishment by the creditors in your personal bankruptcy case.

Employer Bankruptcy

A worker feels a range of emotions, from panic to confusion, when their employer declares bankruptcy. These feelings are heightened for the injured worker receiving or filing for workers' compensation. They often worry if they will lose their award payments and/or benefits if the company closes or their debt is discharged. The good news is that if your employer was required by Illinois law to provide you with workers' compensation coverage, you often are protected in the event they file bankruptcy. If your employer offers coverage through a private insurer, the insurer is still responsible for paying on those claims. If your employer was self-insured, you may be covered by the Illinois Insurance Guaranteed Fund. This fund provides claim coverage for self-insured companies and/or insurance providers which become insolvent. However, be aware that not all employers are eligible for coverage by the fund. Also, though you may still be covered, often bankruptcy proceedings cause delays in payments and the processing of claims. Be certain to contact your Illinois workers compensation attorney if your employer or insurance provider declares bankruptcy or goes out of business.
SHARE
RELATED POSTS on "Business & Finance"
Money Saving Techniques In The Household
Money Saving Techniques In The Household
Mistakes Can Be Corrected, But Not Always
Mistakes Can Be Corrected, But Not Always
Banks With Free Checking Accounts
Banks With Free Checking Accounts
For Catering Long Term Needs With No Delay
For Catering Long Term Needs With No Delay
What Are The key benefits of Trading Currency Exchange On The Web?
What Are The key benefits of Trading Currency Exchange On The Web?
Bankruptcy Car Loans Can Be The Savior You Have Been Looking For
Bankruptcy Car Loans Can Be The Savior You Have Been Looking For
Think Beyond Bankruptcy For Debt Elimination
Think Beyond Bankruptcy For Debt Elimination
Night Trading for Emini Futures, No It's Not Gary Cooper in High Noon at the OK Corral
Night Trading for Emini Futures, No It's Not Gary Cooper in High Noon at the OK Corral
Do You Know How to Make Fast Money?
Do You Know How to Make Fast Money?
Money Management For Teens And Learning Responsibility
Money Management For Teens And Learning Responsibility
Government Grants For Small Business - A Purpose Oriented Beneficial Grant
Government Grants For Small Business - A Purpose Oriented Beneficial Grant
Debit Consolidation-Debit Consolidation Loan
Debit Consolidation-Debit Consolidation Loan
Learning The Tulsa Home Loans Process
Learning The Tulsa Home Loans Process
Find The Best Buy Here Pay Here Lots
Find The Best Buy Here Pay Here Lots
Easy Pay Mortgage Rate
Easy Pay Mortgage Rate
Shaw Capital Management for Small Business Financing with Factoring
Shaw Capital Management for Small Business Financing with Factoring
Four Persons Who Shouldn't Go for A Home Loan Modification
Four Persons Who Shouldn't Go for A Home Loan Modification
Wise Tax Ideas
Wise Tax Ideas
Managing Your Time And Money
Managing Your Time And Money
Cash Advance Loans Find Competition In Pawn Shops
Cash Advance Loans Find Competition In Pawn Shops
Commercial Van Insurance Explained
Commercial Van Insurance Explained
Obama's Federal Grants for Debt Relief are Americans Pay Off Personal Debt - Qualifying Is Easy!
Obama's Federal Grants for Debt Relief are Americans Pay Off Personal Debt - Qualifying Is Easy!
The Careful Canadian Balancing Act
The Careful Canadian Balancing Act
Prestige Sunrise Park Urban Center
Prestige Sunrise Park Urban Center
Tips For Beginners: Forex Trading
Tips For Beginners: Forex Trading

Leave Your Reply

*