Q: If I file bankruptcy in NY, and settle a workmen's compensation case 2 months later, would I have to use the settlement towards bankruptcy?
A: Generally, your right to receive a worker's compensation claim is exempt in bankruptcy. If you've received money prior to filing, however, that money could be claimed to pay your creditors, depending on the amount and other factors. Only the right to "receive" the benefit is exempt. This is a complicated matter requiring assistance from an attorney. Receipt of the funds and timing of your case are critical factors.
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