Chicago, IL asked in Foreclosure, Real Estate Law and Workers' Compensation for Illinois

Q: In Il, can a wc settlement be leined for a foreclosure when seperated from spouse & not on the mortgage?

Been seperated 3 years and haven't lived in house that long. Ex spouse stopped paying on mortgage and I was never on the mortgage. I am permanently disabled on SSDI.

2 Lawyer Answers
James G. Ahlberg
James G. Ahlberg
Answered
  • Workers' Compensation Lawyer
  • Rochelle, IL
  • Licensed in Illinois

A: No. Illinois law forbids liens on workers' compensation awards other than claims of the Illinois Department of Healthcare and Family Services for reimbursement of its expense in paying medical bills related to the injury and attorney fees for the attorney who handled the injured party's case. If a group health provider paid some bills, they may have a contractual right to recover what they paid. And that's it.

Robert D. Kreisman
Robert D. Kreisman
PREMIUM
Answered
  • Workers' Compensation Lawyer
  • Chicago, IL
  • Licensed in Illinois

A: No. A workers' compensation settlement could be listed as an asset in a bankruptcy filing, but is not attachable by a creditor without a judgment especially one arising out of workers' compensation claim. Only a judgment, not a recovery could be recorded as a lien on the property. Even more to the point, since you're not one who signed the note and mortgage encumbering this property, the lender would have no recourse against you or your workers' compensation recovery unless perhaps you personally guaranteed the loan. But workers' compensation recovery is not attachable in any event unless for reimbursement of medical bills unpaid which is unlikely.

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