If you’ve been injured in an accident and are considering filing a personal injury lawsuit, you may be wondering if your settlement could be garnished. The answer is maybe. Whether or not your settlement can be garnished depends on a number of factors, and a Thonotosassa, FL personal injury lawyer can help sort it all out.
What Is a Garnishment?
A garnishment is a legal process where a creditor can seize money that you owe them from your bank account or paycheck. In the context of a personal injury lawsuit, your creditors may attempt to garnish your settlement if you have outstanding debts.
Can My Settlement Be Garnished?
Whether or not your settlement can be garnished depends on the state that you live in and the type of debt that you have. For example, in Thonotosassa, FL, child support and alimony payments take priority over all other types of debt, which means that if you owe child support or alimony, your creditors will not be able to garnish your settlement.
Other debts, such as student loans, credit card debt, and medical debt, are generally not considered priority debts. This means that if you have any outstanding debt in these categories, your creditors may attempt to garnish your settlement.
How Can I Protect My Settlement?
If you’re concerned about your creditors attempting to garnish your settlement, there are steps that you can take to protect yourself. First, you should consult with an experienced Thonotosassa personal injury lawyer who can help you understand the laws in Florida and advise you on the best course of action.
Second, you should consider setting up a trust fund. A trust fund is a legal entity that can hold money for the benefit of another person. Trust funds are often used to protect assets from creditors. By setting up a trust fund and transferring your settlement into the trust, you can shield your money from creditors.
If you’ve been injured in an accident and are considering filing a personal injury lawsuit, it’s important to understand how garnishments work and how they could affect your case. Whether or not your settlement can be garnished depends on the state that you live in and the type of debt that you have. An experienced personal injury lawyer can help you understand the laws in Thonotosassa, FL, and advise you on the best course of action for protecting your settlement from creditors.