Is Worker’s Compensation Exempt from Creditors?
The answer is yes. Workers’ compensation is fully exempt from judgment creditors under Florida Statute section 440.22.
This is a different exemption that Florida Statute 222.11, which protects wages and other compensation earned by a head of household from garnishment and further exempts wages deposited in the debtor’s bank accounts.
Section 440.22 provides that payments due to the beneficiary of workers’ compensation cannot be assigned and threat the benefits due or payable are exempt from claims of creditors.
The statute does not specifically exempt workers’ compensation after it is paid and deposited into a bank account. However, the workers compensation will remain protected even after it is deposited. The Florida Supreme Court has interpreted the statute and the legislature’s intent to protect workers’ compensation proceeds after they are paid and deposited so long as the debtor can identify the money deposited in the bank to workers’ compensation.
About the Author
Jon Alper is a nationally recognized attorney specializing in asset protection planning. He graduated with honors from the University of Florida Law School and has practiced law for almost 50 years.
Jon and the Alper Law firm have advised thousands of clients about how to protect their assets from creditors.
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