An injury settlement would usually be protected as funds you’d need to help with recovery. However, an award could be garnished to pay child support, leftover health insurance obligations, and even tax penalties. Any loans you took out for the accident might also be claimed out of your settlement.
A skilled car accident attorney could help you navigate the complex balance of recovery and meeting your financial obligations. A lawyer also helps by maximizing the settlement check you get so you can pay off your debt and still have enough to rebuild your life after a serious accident.
Contact Maison Law Accident & Injury Lawyers of Bakersfield for an absolutely free case consultation if you’ve suffered a serious injury. Once you find out what your case may be worth and how to hold car insurance companies liable, you are under no obligation to hire us.
What Can My Accident Settlement Check Be Garnished For?
California laws generally protect accident settlement money to help collision victims get back on their feet. Accident awards generally aren’t taxed either.
However, some existing obligations can be taken from a car accident settlement through garnishment. Garnishment is the legal process ordered by a court to take any money owed by the debtor from wages or financial awards. This money is usually deducted from the debtor’s paycheck or settlement before the debtor receives their share of what’s left.
These are a few examples of the type of debt that can be subtracted from the car accident victim’s compensation:
- Child Support – Parents who have overdue child support bills might see the money taken from their settlement.
- Back Taxes – Any previous tax debt may be garnished from a check from a car insurance company.
- Medical Debt – Any hospital bills paid by Medicaid, Medicare, or your health insurance provider may have to be reimbursed if you receive support for those same healthcare expenses. The government would garnish your settlement.
- Loan Repayment – If you secured a loan specifically for the expenses caused by your accident and injury, repayment may be handled automatically through a garnishment.
Collection on medical liens might also be deducted from your settlement before you receive anything. This isn’t the same as garnishment, but it is a similar form of debt collection. One type of lien is when you ask your doctors to delay charging you for medical care until you receive an anticipated accident settlement. As soon as your settlement is worked out, doctors will want to be paid.
Your attorney can help find doctors who will work with you to protect you from bankruptcy after an accident. Overwhelming hospital bills are a common problem for accident victims, while they also lose income because their injuries hold them out of work.
When Should I Have a Lawyer for a Bakersfield Car Accident Case?
If your accident only involves car damage, you probably won’t need a lawyer to get fair treatment and reimbursement for repairs.
However, it’s a good idea to speak with a real Bakersfield car accident lawyer after any serious accident that you didn’t cause. A lawyer protects you if an insurer tries to blame you for what happened or tries to cast doubt on your injuries.
Your attorney can also help you manage growing medical debt and make sure every creditor gets paid. Your lawyer makes sure your settlement includes enough to cover any garnishments that may be on the horizon and pay for your recovery.
Contact a Bakersfield Car Accident Lawyer for a free, no-obligation case consultation to go over your debt and discuss how to emerge from an accident in great physical and financial health.
If you do need a lawyer to help you earn more in a settlement, you don’t have to go into further debt to hire us. Maison Law Accident & Injury Lawyers of Bakersfield doesn’t charge anything unless we win your case for you. Then our fee comes out of the settlement check that an insurer must write for you.