If my employer is filing for bankruptcy, can they still be liable if I was injured? 30 Answers as of July 11, 2013

I got hurt while in the workplace. I can't afford to cover the medical bills so I wanted my employer to take care of it. He told me that the company is going bankrupt and there is no money to cover this. Can he do that? What can I do?

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Alfred Law Firm
Alfred Law Firm | Janice Alfred
If you file a claim against them and they file for bankruptcy and include your claim, your action against the company will be stayed and will most likely be wiped out in bankruptcy. If you get a judgement against them prior to them filing for bankruptcy, you will be standing in line with all their other creditors to get paid, if there is anything to get paid from.
Answer Applies to: Georgia
Replied: 11/4/2011
Lacy Fields, Attorney at Law, LLC
Lacy Fields, Attorney at Law, LLC | Lacy Fields
This would be a workers' compensation claim. The company should have insurance, and the insurance should cover the accident regardless of whether or not the company went bankrupt. However, that being said, if the company does not have insurance, you will have a harder time getting paid, but your claim will be at the top of the list of creditors. You should immediately consult with an attorney about filing a claim. If the company is uninsured the matter should immediately be set for a hardship hearing so that the Second Injury Fund can step in and at least pay for treatment. Once your treatment is done you can have a full hearing for a final judgment against the company.
Answer Applies to: Missouri
Replied: 10/24/2011
R. D. Kelly Law Firm, P.L.L.C.
R. D. Kelly Law Firm, P.L.L.C. | Robert Kelly
Workplace injuries are covered by the Department of Labor & Industries.
Answer Applies to: Washington
Replied: 10/24/2011
Lombardi Law Firm
Lombardi Law Firm | Steve Lombardi
Yes. The answer will depend on whether or not the employer purchased workers' compensation insurance coverage. File the claim with your employer and see if an insurance company contacts you. If not contact the Iowa Industrial Commission and report the employer.
Answer Applies to: Iowa
Replied: 10/24/2011
Patrick M Lamar Attorney
Patrick M Lamar Attorney | Patrick M Lamar
If there is a compensation policy in effect you should be fine. File a report of injury first.
Answer Applies to: Alabama
Replied: 10/24/2011
    Kelaher Law Offices, P.A.
    Kelaher Law Offices, P.A. | James P Kelaher
    First, find out if he carried workers compensation insurance. If he did, you'll be covered regardless of whether he declares bankruptcy or not. If he did not carry comp insurance, then you're out of luck if he lists you as a creditor.
    Answer Applies to: Florida
    Replied: 10/24/2011
    David F. Stoddard
    David F. Stoddard | David F. Stoddard
    Most employers have workers comp insurance to cover this and bankruptcy would no affect the insurance coverage. If the employer has no insurance and goes bankrupt, you may be unable to collect. You should file a workers compensation claim and push it is far as you can.
    Answer Applies to: South Carolina
    Replied: 10/24/2011
    Law Office of Jared Altman
    Law Office of Jared Altman | Jared Altman
    He must carry Workers Compensation Insurance. If not, then you can sue him and I suspect that it's not dischargeable in bankruptcy. Also, you can still get Workers Comp if your employer was not insured under the "uninsured" provisions of the Workers Comp law.
    Answer Applies to: New York
    Replied: 10/21/2011
    Craig Kelley & Faultless
    Craig Kelley & Faultless | David W. Craig
    First you need to see if he had Workers Compensation insurance as required by Indiana law. If he did at the time of your injury then the insurance company will have to pay even though the employer is going bankrupt. If not then you need to get the employers bankruptcy information and file a claim.
    Answer Applies to: Indiana
    Replied: 10/21/2011
    The Law Firm of Shawn M. Murray
    The Law Firm of Shawn M. Murray | Shawn M. Murray
    Yes. Unfortunately, your employer can file for bankruptcy protection, and he will likely be able to avoid most, if not all, of the liability for your medical bills by doing so.
    Answer Applies to: Louisiana
    Replied: 10/21/2011
    Bulman Law Associates PLLC Injury Law Firm
    Bulman Law Associates PLLC Injury Law Firm | Thomas Bulman
    Call the Montana Department of Labor, Employment Relations Division, and ask them to tell you if your employer's name is in the computer and who his work comp insurer is. His bankruptcy has nothing to do with the liability of the WC insurance company.
    Answer Applies to: Montana
    Replied: 10/21/2011
    The Law Office of Harry E. Hudson, Jr.
    The Law Office of Harry E. Hudson, Jr. | Harry E. Hudson, Jr.
    Ask a worker's compensation insurance attorney.
    Answer Applies to: California
    Replied: 10/21/2011
    Tenge Law Firm, LLC
    Tenge Law Firm, LLC | J. Todd Tenge
    Yes, as long as they workers compensation insurance in force and effect at the of your injury. The insurance coverage would be "outside" of the company's bankruptcy proceedings. Thus, your claim would remain viable, and work comp benefits would still be available to you.
    Answer Applies to: Colorado
    Replied: 10/21/2011
    Cody and Gonillo, LLP
    Cody and Gonillo, LLP | Christine Gonilla
    There is a fund that will pay.
    Answer Applies to: Connecticut
    Replied: 7/8/2013
    Paul Whitfield and Associates P.A.
    Paul Whitfield and Associates P.A. | Paul L. Whitfield
    Yours is a worker comp case. It should be reported to the carrier for this type insurance. If the boss does not have insurance you can make a claim in the bankruptcy court for sure but that may not help much. When a case is in bankruptcy (actually) you cant do anything without the courts permission.
    Answer Applies to: North Carolina
    Replied: 10/21/2011
    Shaw Law Firm
    Shaw Law Firm | Steven L. Shaw
    You should be covered by the Department of Labor and Industries. Employers are required to carry workplace coverage for their employees. It's more generally known as Workers Compensation coverage. Call WA DL&I and report the injury.
    Answer Applies to: Washington
    Replied: 10/21/2011
    Law Offices of Kenneth Wincorn P.C.
    Law Offices of Kenneth Wincorn P.C. | Kenneth Wincorn
    Find out if he has workman's compensation.
    Answer Applies to: Texas
    Replied: 10/21/2011
    Wooten, Kimbrough & Normand, P.A.
    Wooten, Kimbrough & Normand, P.A. | Orman Kimbrough, Esq.
    Many times people hurt on the job can pursue claims for workers compensation benefits. There may be insurance coverage that would remain in effect even if your employer's company filed bankruptcy. Also, there may be other ways to pursue your claim, but that would depend on how you were injured. You should consult with a personal injury attorney who can address your particular situation.
    Answer Applies to: Florida
    Replied: 10/21/2011
    Buff & Chronister
    Buff & Chronister | G. Scott Buff
    If you were injured while working, then you have a claim for worker's compensation benefits. If your employer had three or more employees, then your employer should have had a policy of worker's compensation insurance that will cover your injury related medical bills and will pay you certain benefits after you have been out of work for a certain period of time. In short, you should make a claim for worker's compensation benefits.
    Answer Applies to: Georgia
    Replied: 10/21/2011
    Garruto & Calabria, LLC
    Garruto & Calabria, LLC | Andrew F. Garruto
    Your company is obligated to carry workers compensation insurance. That policy should be covering your workers compensation benefits, even if your company goes out of business.
    Answer Applies to: New Jersey
    Replied: 10/21/2011
    Dwyer, Black & Lyle, LLP
    Dwyer, Black & Lyle, LLP | Kevin Habberfield
    File a worker's compensation claim immediately. Go see an attorney as fast as you can. If there is applicable insurance coverage, your employers bankruptcy will have no effect on your claim. If there is no worker's compensation coverage, you can pursue your boss/company.
    Answer Applies to: New York
    Replied: 10/21/2011
    Andrew T. Velonis, P.C.
    Andrew T. Velonis, P.C. | Andrew Velonis
    File a Worker's Comp claim. Comp is covered by insurance which your employer is required to carry. If he didn't, you can file a claim in bankruptcy, which should be treated as a priority claim.
    Answer Applies to: New York
    Replied: 10/21/2011
    Holzer Edwards
    Holzer Edwards | Kurt Holzer
    File a claim with workers compensation.
    Answer Applies to: Idaho
    Replied: 10/21/2011
    Broad Law Firm, LLC
    Broad Law Firm, LLC | Donald K. Broad
    If you were injured in the workplace while at your job, you should be covered by work comp insurance, and your employer should have that coverage, regardless of their financial condition. Check in your break room area or some common area in the work place for a work comp poster that should have information on how to file a work comp claim. It would be a good idea as well to consult with a local personal injury attorney.
    Answer Applies to: Indiana
    Replied: 7/11/2013
    Bernard Huff, Attorney/Mediator
    Bernard Huff, Attorney/Mediator | Bernard Huff
    File a claim with your State's worker's compensation agency. You may want to retain an attorney for specific legal advice and assistance.
    Answer Applies to: Indiana
    Replied: 10/21/2011
    Painter Law Firm PLLC
    Painter Law Firm PLLC | Robert Painter
    You should find out if your employer was a workers' compensation subscriber. You can also call the Texas Department of Insurance to request assistance in your inquiry.
    Answer Applies to: Texas
    Replied: 10/21/2011
    Oliver Law Office
    Oliver Law Office | Jami Oliver
    Yes, you can still submit a worker's compensation claim even though the company has not paid the premiums. It's a complicated matter, so you may want to have an attorney look at it, but you are covered while you are in the course and scope of employment in Ohio, even if your employer did not keep up as required by law.
    Answer Applies to: Ohio
    Replied: 10/21/2011
    Law Office of Russell D. Gray, PC
    Law Office of Russell D. Gray, PC | Russell D. Gray
    There should be workers compensation coverage. If your employer didn't pay the workers comp premiums, the owners could have other serious legal problems. Contact a workers comp attorney as soon as possible.
    Answer Applies to: Utah
    Replied: 10/21/2011
    Sweeney & Sweeney
    Sweeney & Sweeney | J.Leonard Sweeney, III
    Yes they should have insurance to cover your claim.
    Answer Applies to: New Hampshire
    Replied: 10/21/2011
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