Will payments from worker’s comp disability have a negative affect when I file for bankruptcy?

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Will payments from worker’s comp disability have a negative affect when I file for bankruptcy?

My sources of income come from a regular W2 job plus 1 real estate property. Reason for considering filing is due to +$100,000 credit card debt, plus 2 foreclosures. Does is matter if I get monthly payments from my disability vs a lump sum payment?

Asked on April 11, 2011 under Bankruptcy Law, California

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

It should not have any effect because all income has to be listed on the bankruptcy forms.  The income and expense schedule (bankruptcy form) asks for monthly income and expenses.  If you received a lump sum annual payment as opposed to monthly, the result would be the same because in order to calculate monthly income, the annual payment would be divided by 12.


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