Q: My only income is worker's compensation. In VA, is my comp income and everything obtained with it exempt in bankruptcy?
Is exemption granted by VA Code Ann. 65.2-531? I have been receiving workers comp for many years and everything I have has been purchased with this income.
Yes, your earnings obtained through Workers' Compensation are exempt from execution by creditors based on the statute you reference. Since the Commonwealth of Virginia does not allow its citizens to use the federal exemptions, the benefit is clear that Virginia's protection of Workers' Compensation from creditors will also apply to a bankruptcy case. Further, if you are garnished at your bank or the party who pays the Workers' Compensation, you may argue this exemption in a garnishment proceeding. It is probably best to simply contact an attorney and file for a bankruptcy case as the bankruptcy will fully and finally deal with any outstanding debt obligations.
Good luck in your future endeavors.
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