Bankruptcy-Worker’s Compensation Settlement

By: WISCONSIN LAW JOURNAL STAFF//December 27, 2022//

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7^th Circuit Court of Appeals

Case Name: Rodney Ryan v. Branko Prpa MD LLC

Case No.: 22-1536

Officials: Wood, St. Eve, and Kirsch, Circuit Judges.

Focus: Bankruptcy-Worker’s Compensation Settlement

Ryan signed a worker’s compensation settlement with his employer that set aside $400,000 for disbursement to the doctors who treated him for his workplace injury. He then filed for bankruptcy and tried to keep those funds for himself while having his debts to his doctors eliminated. His medical creditors cited Section 102.26(3)(b)(2), “[a]t the request of the claimant[,] medical expense[s], witness fees[,] and other charges associated with the claim may be ordered paid out of the amount awarded.” The bankruptcy court recognized Ryan’s attempts for what they were and rejected them. Ryan appealed to the district court, which affirmed. This court affirmed the bankruptcy court holding that Ryan could not exempt the $400,000.

Affirmed.

Decided 12/19/22

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