Can a Personal Injury Settlement be Garnished in Texas?

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.

Contact us for a FREE injury claim evaluation

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Jami Smith
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Carrollton Law Firm rocks! They took the time and care to make sure that I received the medical attention needed for the vehicle accident I was in. Everyone team member I interacted with was sincere and courteous and really cared about making sure that I received everything I needed to recover fully. Carrollton Law Firm went to bat for me and hit it out of the park! I will not hesitate to call them if I ever need a personal injury law firm again. The entire team went above and beyond and EXCEEDED my expectations. Thank you!
carrie lachance
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Wonderful experience from the moment of walking in, they make you feel so welcomed. The little details of even putting your name on the whiteboard welcoming you. All along the way they keep you informed on the progress, asking detailed questions to get the full picture of your individual needs. The team you're assigned, all work together to make a stressful and scary situation easy to deal with. Kelsey, Aaron and Abraham ate the best!! Thank you again 💓.
Gabby Jaramillo
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Amazing staff. They were able to help my dad with his case and were patient with him. I appreciate how easy it was to communicate by text when I was at work, and always kept me updated with his case. I definitely recommend Hudson Law Firm!!
Mike Youssef
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Extremely happy with my results, the Hudson Law firm did their thing, Ethan made sure he kept me up to date with my case did everything in his power to make sure you get what you deserve and specially making sure you get the help you need with doctors appointment and pain management. 10/10 if you been injured don’t Hesitate to use them extremely happy keep up the good work.
Jana Starks
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I had an awesome experience with Hudson law firm. Everyone at the office is so nice and treated me with respect and concern from day 1. They make you feel welcomed when you go into the office. In the end they were able to get me a check even though I still have a journey ahead they were able to help compensate me for some of my pain and suffering.
Peggy Lawrence
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Very great and understanding people . My whole experience was wonderful .
Jacob Alexander
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They made a bad situation great. I would definitely recommend them to anyone that was involved in a car accident.
Alan Gonzales
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This firm I have absolutely nothing negative to say. They did a great job getting what needed to get done and some! I highly recommend with no hesitation
porscha smith
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The whole team was very helpful. They took very good care of me and got me the money I deserve..thank you again for everything
Elijah Mumphery
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They answer whenever i call and they will fight to get you as much as possible their is a call center for after hours, plus they answered all of my questions the hold time is always short I would highly recommend Carrollton Injury Law to anybody.
Lisa Umbarger
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No one wants to deal with the aftermath of an accident, but if you do find yourself in that situation, these folks make the experience so much easier. I felt comfortable with them from my very first meeting. They even had a welcome message for me in their lobby. They are great people to work with and I am happy with the outcome.
Mohammed Merchant
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A law firm like such is hard to find, one that cares for their clients with such passion. I worked with them for almost 2 years. He has always been friendly, professional, helpful, and over all amazing. He was patient with my silly questions. He is beyond paralegal. I will certainly recommend this firm to others,