Can creditorslevy a workmans comp settlement?
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Can creditorslevy a workmans comp settlement?
Asked on April 23, 2011 under Bankruptcy Law, Wisconsin
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Creditors can levy anything, or garnish your wages or freeze your assets and even place liens on your property (from homes to cars). A workers compensation settlement is a settlement, just like a regular civil lawsuit, so those monies when deposited into your bank account can certainly be taken. Further, depending on how early in the process the creditors finds out about your settlement, it may be able to intercept it and latch onto it before you have an opportunity to take the money and dissipate the funds. If you have creditors you owe and the statute of limitations has not run out for those creditors to sue you, you should consider trying out payment plans with those creditors or seeking the advice of counsel to determine what your next steps could be. Keep in mind, if you hire counsel to negotiate down these debts, make sure your lawyer is licensed in the state in which you are located by your state's department of financial institutions if that agency licenses debt negotiators/debt adjusters and that state doesn't recognize exceptions for lawyers or very limited exceptions.
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