Navigating the Protection of Your Personal Injury Settlement

In Virginia, personal injury settlements are typically safeguarded from garnishment, providing the recipients a sense of security and peace of mind. However, as with many legal matters, there are exceptions to this rule. In this article, one of our Virginia personal injury lawyers delves into the scenarios in which personal injury settlements might be subject to garnishment.

Understanding Garnishment

Garnishment, in essence, involves a third party laying claim to the property or assets owned by someone else. Typically, it pertains to situations where an individual’s wages are garnished to cover a debt they owe, such as child support payments. When discussing personal injury settlements, the rights of third parties to a settlement are generally referred to as “liens.” While the process shares similarities with wage garnishment, in this context, it pertains to taking a portion of a personal injury settlement.

Instances Where Funds Can Be Deducted from a Personal Injury Settlement

In most cases, creditors do not have the authority to place liens on personal injury settlements. However, exceptions exist. According to the Code of Virginia, Section 8.01-66.2, specific medical providers can impose liens on a personal injury settlement awarded to an individual injured by another party. The maximum amounts for these liens are as follows:

• Up to $2,500 for nursing home or hospital care.

• Up to $750 for each physician, nurse, pharmacy, or physical therapist.

• Up to $200 for any emergency medical services agency or provider.

These liens come into effect when you require medical treatment before receiving your personal injury settlement. It’s important to note that healthcare providers can only place a lien on the settlement if this is explicitly outlined in the plan documents.

Settlement Liens and Child Support

Another common reason for liens on personal injury settlements is overdue child support payments. Similar to wage garnishment, a recipient parent can petition the court to enforce a child support order through the garnishment of a personal injury settlement. In such cases, the owed child support payments are collected, and the accident victim receives the remaining amount once other liens against the settlement have been accounted for.

Seek Legal Support from Our Virginia Personal Injury Lawyers

Shielding your personal injury settlement from creditors, healthcare providers, and other third parties can be a complex task. At The Jackson Law Group, PLLC, our Virginia personal injury lawyers specialize in safeguarding your settlement and negotiating with third parties to reduce the total liens and garnishments. We are dedicated to helping our clients secure the full and equitable compensation they deserve. Contact us at (276) 200-5417 or initiate an online chat to request a free consultation and explore the specifics of your case. Your personal injury settlement should serve its intended purpose without undue interruptions or deductions.