You may believe that when you receive a personal injury settlement from the insurance company or defendant that your case is over, but there are certain precautions that need to be taken to safeguard your due compensation. You still need to ensure that your settlement is protected from any potential creditors or liens.
To make sure that your compensation is completely secured, you may need the help of a Houston personal injury lawyer at West Loop Law and the Law Office of Nhan Nguyen, MD, JD. Our legal team works tirelessly to protect our client’s legal interests.
Understand Your Legal Rights
To begin, you should learn a few basic facts regarding your rights as the recipient of a personal injury settlement in Texas. Under state law, money awarded in personal injury and workers’ compensation settlements is protected from seizure by creditors, meaning that they cannot lawfully confiscate settlement money from your bank account to pay off existing debt, even if you owe money to a creditor or debt collector or declare bankruptcy. You must be vigilant in protecting your settlement to ensure this level of security
Keep Your Settlement Separate
Separate your personal injury settlements from other sources of income, such as your wages or Social Security Disability benefits. Keep the settlement money in a separate account rather than placing the settlement check into your regular bank account. This will protect it from creditors who may attempt to garnish your earnings by removing the amount you owe directly from your bank account.
When you combine your personal injury settlement money with your normal income, you run the risk of a creditor deducting a portion of your settlement to pay off debt instead of taking it from your disposable income. Although it is prohibited under the law, the creditor may not be able to tell the difference between funds from your personal injury settlement and funds from your normal salary. To avoid this problem, keep these two sources of money separate.
Keep Detailed Records
As the receiver of a personal injury settlement in Texas, it is vital to keep meticulous financial records. Documenting your settlement money properly will help you generate a paper trail that you can use to prove how you spent the money afterwards.
Keep track of where the money for the settlement came from, when you got your check, and how you used it. Keep all bills, receipts, and invoices related to payments you made with your settlement payout in an organized folder.
Consult With a Personal Injury Attorney
If you’re in a financial bind, your wages may be garnished by creditors. Your personal injury compensation is protected from creditors under the law. However, it is critical to take precautions to secure the safety of your settlement funds, just in case.
In a personal injury lawsuit, an attorney can assist you in protecting the money you received from the defendant or their insurer. After your claim is resolved, a personal injury lawyer in Houston, Texas can take actions to protect your payment from creditors and avoid settlement garnishment. For additional information, speak with an attorney about your specific case immediately.
Personal Injury Lawyers in Houston
If you or a loved one has been injured as a result of negligent actions of another party, contact the Houston personal injury lawyers at West Loop Law and the Law Office of Nhan Nguyen, MD, JD today. Our legal team possesses the essential information, abilities, and legal competence to successfully handle every aspect of your claim. We can speak with the insurers to defend your right to a favorable settlement or verdict, and if required, file a lawsuit on your behalf in court to vindicate your rights. We represent the interests of ordinary people, not the demands of big businesses. Nhan Nguyen, MD, JD and Nader Rabie, JD can help you hold a negligent individual or business accountable for their conduct following a catastrophic accident.
Call West Loop Law and the Law Office of Nhan Nguyen, MD, JD now at (713) 840-7200 to book a consultation and discuss your case if you or a loved one has been unfairly injured in a serious accident.
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