Workers’ compensation is not actually a public benefit. In broad strokes, worker’s compensation is an insurance program paid for by employers, and administered by the state. It is designed primarily to ease the difficulties associated with being injured and getting those individuals back to work.
Unemployment is a welfare program offering monetary assistance based on inability to find work. It is paid for by employers and administered by the individual states, and is available generally to those who are unemployed through no fault of their own, for example those who are laid off or lose work because their employer goes out of business. Generally, unemployment can be claimed for 26 weeks. It is worth noting that Minnesotans receive some of the most generous unemployment benefits in the nation. Upon filing bankruptcy, you will not lose your unemployment benefits, though it will also not extend your access to those benefits. Also worth noting, that debts to the state for unemployment overpayments can be discharged in a bankruptcy, with some exceptions.
That should wrap up our discussion of public benefits, at least for now. If you are interested in the history and philosophy of the economy, bankruptcy, and debt, stay tuned for my blog posts. And, if you are thinking about filing bankruptcy in Minneapolis, MN , reach out to us at www.lifebacklaw.com.