Can bankruptcy court take a WC settlement? 6 Answers as of February 17, 2012

Worker's compensation proceeds are exempt in bankruptcy.

It depends on the exemptions available in your state. If you are in California and if you use the "704" exemptions then a workers compensation claim is fully exempt.

Workers' compensation benefits are fully exempted so it does not matter when you file but if you do receive a settlement you must keep the money separate and not mix it with other money before filing.

Probably not, and you're probably better off filing before the settlement. If you haven't done so, go speak to a knowledge bankruptcy attorney. There are two different sets of "exemptions" you can use to protect your property when you file. A good attorney will know which to use. For example, 704 exemptions give you an unlimited exemption for an expected WC settlement, where 703 gives you a personal injury exemption and a $23,000+ wildcard. Depending on your other assets and the expected amount of WC award, which set to use may be critical.

It is possible that you cannot protect a worker's compensation settlement. There is a cap of what you can protect in a bankruptcy. Also, worker's compensation can include settlement of past or future wages. You should really consult and attorney prior to filing if you have a workers compensation claim.

You have exemption is the WCAB settlement. I don't know what the rest of your exemptions are or the amount of money you expect. You need to see a lawyer - the biggest mistakes in pro pers commit - is with their exemptions.