If you’ve received a workers’ compensation or personal injury settlement with help from a personal injury lawyer in Phoenix, AZ, you’ll need to work to protect the money. While these funds are exempt—which means that creditors can’t take it via garnishment—you’ll still have to take certain steps. Here, you’ll get some easy tips on protecting personal injury settlement proceeds.
Keep Funds Separate
Upon receipt of a settlement check, deposit it into a separate account, and don’t mix it with your personal or business funds. Mixing the two is called ‘commingling’, and it removes the protections an exemption provides. If you can prove that the money in an account is from a settlement, you’ll be able to keep it safe from garnishment or bankruptcy.
Get a Prepaid Card
If a creditor wins a judgment against you, deposit the settlement money into a prepaid account instead of a regular bank account. While most of these cards come with monthly fees, it’s less likely that a creditor or a collection agency will be able to garnish the funds in such an account.
Local Attorneys Are Here to Help
Winning a personal injury case is a momentous event, but the work isn’t done once the decision is handed down. Victims must still take steps to protect their settlements from creditors and garnishments. If you have questions on how to win a personal injury case and protect your settlement funds, the firm’s attorneys are here to help. Request additional information online or call today to schedule a consultation with a personal injury lawyer in Phoenix, AZ.
