If you have received a personal injury settlement, or are considering filing a personal injury claim, then you want to know that you will have access to the money you are owed. If you are in a position that your wages are being garnished, then you likely wonder if a personal injury award could also be garnished.
The short answer is that in the state of California your personal injury award cannot be garnished – provided all your ducks are in a row. Read on to learn how you can protect your money. If you have not yet filed your case, contact a personal injury attorney for a free legal consultation by contacting Law Offices of Fernando D. Vargas at 909-982-0707.
Your award should be exempt but there are ways it can be garnished
If you are awarded money in a personal injury lawsuit, it should be exempt under the law. This should meant that creditors are not able to garnish it, but if the money is mismanaged in certain specific ways, then it could be in danger.
First, consider that creditors in California are legally allowed to garnish whatever is lower of 25% of your disposable income or 40 times the state’s hourly minimum wage. If a creditor sues you, then you could be ordered to pay by the court. If you have money that you have stashed away from a previous settlement, that money could be garnished if it is not held separate from other funds.
For example, consider that you have a single checking account into which your wages and your personal injury settlement have gone. If the creditor finds out about the balance, they may work to get the court to agree they can garnish the account because it is impossible to differentiate between your wages and the money you received in a personal injury lawsuit.
We can help ensure your funds are kept separate
For this and other reasons, it is wise to keep your settlement money entirely separate from any other income you have. In fact, it should be separate from all weather, including wages, savings, inheritances, etc. Keep close records of the money in your settlement account, where it came from, and where it goes. Keep bills, invoices, receipts, etc.
If you are very concerned that your money will be taken anyway, then you could consider using prepaid debit cards. Once you put funds on them, those funds can generally not be garnished. However, there are usually fees associated with using them.
We will help you get the settlement you are owed and keep it
The best way to avoid losing the money you are owed in a personal injury award is to ensure you have a qualified attorney helping you. When you reach out to Law Offices of Fernando D. Vargas at 909-982-0707, we can help with all types of personal injury cases. We can also help you set up your award to protect it from garnishments and other issues. Call us now to get the process started.
