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Illinois Supreme: Medical Providers May Not Attach Injured Workers’ Awards in Bankruptcy Court
A three-judge panel of the high court, answering a certified question by the 7th Circuit Court of Appeals, found that the Illinois Workers’ Compensation Act creates an exemption that protects injured worker’s monetary awards from attachment by creditors during bankruptcy proceedings.
Three medical providers, who collectively say they’re owed $137,772 by workers’ compensation claimant Elena Hernandez, argued that 2005 workers’ compensation reform legislation created an exemption to a statute that otherwise protects workers’ comp awards from garnishment.
“If the existing statutory scheme is susceptible to abuse at the expense of medical providers, as the health care providers here charge, that is a matter they must take up with the General Assembly,” the court said.
POLITICO
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