Can a Personal Injury Settlement be Garnished in Texas?
If you have been injured in an accident, you are already dealing with a lot. On top of that, you may have outstanding debts that you’re worried about paying, especially if you have to miss work to recover from your injuries. Considering that over 77% of Americans are carrying debt, you are not alone in wondering if your personal injury settlement check can be taken by creditors to pay outstanding debts.
What is “Garnishment”?
A garnishment is a court order saying that money, typically your wages paid by your employer, will be taken from your paycheck and applied toward a debt.
In the personal injury world, it’s more common to see liens.
A lien is a legal claim against property or assets that can be used as collateral to repay a debt. For instance, if you have Medicare, they may place a lien on your personal injury settlement to ensure they get paid back for your medical treatment related to the car accident for which you are making a claim.
Protecting your injury claim settlement can be complicated if you have outstanding debts, and you should contact a knowledgeable and skilled personal injury law firm like Carrollton Injury Law to help you safeguard your money. Simply put, we have the experience to know the best ways to both get you the most compensation for your claim and to protect your settlement from creditors.
Can My Personal Injury Settlement be Taken by Creditors
In Texas, a lien can be placed on your personal injury settlement in specific circumstances, for instance if you owe back taxes or child support. If you have outstanding debts, you should consult with an experienced personal injury lawyer like the team at Carrollton Injury Law. If your lawyer knows in advance that you have debts, they can take steps to ensure your settlement is as protected as possible. After all, this is money you are paid due to an injury to make your body whole again, not a windfall.
Certain creditors can place a lien on your settlement. Lienholders like Medicare, Medicaid, Tricare, and some health insurance companies can place a lien, or reimbursement claim, on your personal injury settlement to ensure they are paid for their services. If you have a personal injury lawyer, your lawyer can negotiate on your behalf to lower the amount that is eventually paid for the health insurance reimbursement claim.
Navigating these complex legal and financial landscapes requires expertise not just in personal injury law but also in understanding how these matters intersect with other areas of law. For instance, in the context of managing personal and financial recovery post-divorce, the concept of an agreed divorce in Texas may become relevant. An agreed divorce, characterized by mutual consent and cooperation between spouses regarding the division of assets, including potential personal injury settlements, can significantly influence the financial aspects of a personal injury case. Therefore, integrating the expertise of attorneys familiar with both personal injury and family law can provide a comprehensive strategy that safeguards your financial interests across different legal domains.
Read: Should I Use My Health Insurance to Go to the Doctor After an Accident
Carrollton Injury Law Can Help Protect Your Settlement
At Carrollton Injury Law, personal injury is all we do. We have over 25 years of experience in settling injury claims, and we know the best ways to get you the most compensation possible, especially if you have a complicated claim or outstanding debts.
Don’t let your debt keep you from getting the best compensation possible for your injury claim. Call or text us at 972-360-9898 for a FREE, no obligation injury claim evaluation, and we will discuss how we can help you. If we decide to work together, there is no cost up front. We work on contingency, which means our fee comes out of the eventual settlement check.
