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Below is a list of the most common customer questions. If you can’t find an answer to your question, please don’t hesitate to reach out to us.
Keep Your Funds Separate. Deposit your injury settlement check in a segregated account & don't deposit any other money in the account. Use a Prepaid Debit Card. Our Experienced Bankruptcy Attorney Is Here To Help.
Money awarded in personal injury settlements in California is technically "exempt" under the law. That means that creditors cannot legally garnish that money (take it from your bank accounts). In cases like this, your settlement money essentially gets taken by mistake.
Protecting a Workers' Compensation Settlement In most cases, workers' comp settlements are exempt from garnishment as are other settlement types. Debt collectors cannot garnish them, with the exception of certain government agencies.
Money awarded in personal injury settlements in California is technically "exempt" under the law. That means that creditors cannot legally garnish that money (take it from your bank accounts). When creditors file suit against you, a court may order you to pay.
If you receive money from a lawsuit judgment or settlement, you may have to pay taxes on that money. After you collect a settlement, the IRS typically regards that money as income, and taxes it accordingly. However, every rule has exceptions. The IRS does not tax award settlements for personal injury cases.
Usually, a settlement check is sent to the attorney of record. The attorney may hold the check in a trust or escrow account until it clears. Your attorney will also deduct his or her own share from the settlement funds for the legal services that he or she provided and for the advancement of any legal costs.
Understand the Tax Implications. Getting a handle on how much your windfall may be taxed is a crucial first step in managing your money. Get a Good Financial Advisor. Pay Off Debt and Save. Invest in Education. Invest in Your Home. Donate to Charity. Invest in Business, Friends, or Family. Enjoy Yourself!
Know The Tax Consequences. Create a plan. Hire a professional. Get a life insurance. Invest in education. Invest in income-generating vehicles. Invest in your house. Give Back And Share Your Blessings.
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