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Posted On: January 21, 2010 by Donald W. Fohrman

Illinois court orders chidl-support arrearage to be apid from comp settlement

The Illinois Appellate Court, 4th District held that the trial court did not err when it ordered the the respondent's child-support arrearage plus interest be paid from his workers' compensation settlement. Although WCA Section 21 bars a lien against worker's compensation beneifts, the income Withholding for Support Act provides an exception to the WCA's income exemtion.

Case name: Illinois, Sate of Dept. of Healthcare and Family Services b. Bartholomew, 17 ILWCLB211 (Ill.App.Ct., 4th 2009).

Bartholomew received a workers' compensation settlement of $175,000. The trial courted ordered that the mother of Bartholomew's child recieve $20,473.51 from the settlement as current child support and that $9,216.77 be applied toward child support arrearages and interest due to the Illinois Department of Health and Family Services under an administrative support order

Bartholomew did not object othe use of his workers' compensation settlement to pay current child support. He argued, however, that workers' compensation benefits are exempt from judicial process for child support arrearages pursuant to WCA Section 21. Specifically, Bartholomew, contended that a request for payment of an arrearage pursuant to a child support lien for payment of a past due suuport obligation is a debt that is barred from collection from his compensation settlement. The Illinos Appellate Court disagreed and affirmed the trial court, reasoning that the court's order was proper based on the statutory exception to income exemptions for the collection of child support.

Section 15(d) of the Income withholding for Support Act specifically includes workers' compensation payments in the definition of income. The section also states that any other state or local law purporting to exempt statutorily defined income does not apply to proceedings involving the collection of child support. The court concluded that although Section 21 of the WCA exempts workers' compensation awards from liability for debts, Section 15(d) of the Withholding Act creates an exception to that exemption for the collection of child support, including arrearages.

Furthermore, the court explained that applyng Bartholomew's workers' compensation settlement funds to his past due child support also serves the intent of the WCA to surnish a measure of financial protection to the worker and his dependents for injuries received by him which arose out of and in the course of his employment. Sections 7 and 8 of the WCA recognize a workers' dependents are intended beneficiaries.