In re: Hernandez

Ct. of Appeals certified question to Illinois Supreme Court as to whether debtor in Chapter 7 bankruptcy proceeding can assert as exemption under section 21 of Illinois Workers’ Compensation Act proceeds to her workers’ compensation claim that was pending at time she had filed her bankruptcy petition, but was settled two days after she had filed said petition. Bankruptcy Ct. and Dist. Ct. denied said exemption, after concluding that use of any workers’ compensation exemption to thwart instant class of medical creditors who provided treatment for debtor’s work-related injuries would frustrate purpose of Illinois Workers’ Compensation Act. Ct. of Appeals, though, noted that section 21 of Illinois Workers’ Compensation Act has been interpreted by bankruptcy courts to create exemption for workers’ compensation claims, and that question remained to be answered by Illinois Supreme Court as to whether Illinois Workers’ Compensation Act as altered by 2005 amendments allowed instant care-provider creditors to reach proceeds of debtor’s workers compensation claim.