Loans and Liens Against Worker Compensation Awards and Settlements

Did you know worker compensation awards and settlements are protected under South Carolina workers compensation law? In otherwards, unlike with other claims, creditors cannot attach judgments or otherwise attempt to satisfy debts through worker compensation settlements. The only exception to this is Federal tax and child support arrears, which are not protected under South Carolina workers compensation laws because because Federal law always supersedes state law.

SC Code section 42-9-360 states, in part:

(A) No claim for compensation under this title shall be assignable and all compensation and claims therefore shall be exempt from creditors and from taxes.

(Note: The word “taxes” refers only to state taxes.)

(B) It shall be unlawful for an authorized healthcare provider to actively pursue collection procedures against a worker compensation claimant prior to the final adjudication of the claimant’s claim.

(Note: Beware of subrogation reimbursements demanded by employer provided health care insurance carriers for billings associated with treatment of job injuries. Federal law can trump this in many circumstances. Be sure your worker compensation claim is filed correctly to avoid a number of other problems complicating the resolution. This area of law is often very complex, but it is important to consider).

Qualified attorneys specializing in workers compensation law can help you navigate through the often confusing workers compensations claims process. Hiring a lawyer will not only save you from additional headaches, but your attorney will also advocate on your behalf to ensure you receive the maximum worker compensation award possible for your situation.