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Corp bankruptcy and WC

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  • Corp bankruptcy and WC

    Are Workers Comp claims dischargable in a Chapter 11 corporate bankruptcy? WC is now paying for monthly medication and the concern is that the company could end the payments.
    The bankruptcy is filed in Florida. The WC claim is in Kentucky.

  • #2
    Workers Compensation and Kentucky

    The state will continue workers compensation benefits under its own program should the employer become unable to continue insurance, such as if the company no longer exists.
    Lillian Connell

    Forum Moderator


    • #3
      What if the company still exists, but it is reorganizing under Ch. 11 bankruptcy?

      Couple that with the fact that the company closed all operations in KY, where the WC claim is--what then? I've been searching myself and haven't had any luck yet.



      • #4
        This post is more than 2 years old. Likely by now the situation has resolved
        I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.


        • #5
          I'm sure it has, but I was trying to be a good forumite and not start a new thread where a relevant one was already in existence.

          Shall I start a new one?


          • #6
            As laws can change in two years, yes, please start new threads rather than tacking questions onto old ones.

            We've seen that happen here before; an old thread was used and in the interim the applicable law had been amended. We were flooded with corrections which were not applicable since the information had been correct at the time, and the "correctors" failed to notice the date. It was kind of messy getting that straightened out.

            The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.


            • #7
              Will do. Thanks.


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