Can Law Suit Winnings Be Taken by Collector?
Date: Thu, 10/30/2008 - 22:27
If I am sued by a collector, what part of the above money could they garnish?
Or if I am given a canceled debt form to file with my taxes, will the lawsuit winnings money increase my taxable amount?
What part of the above money is reported as income on my next tax return?
What state are you in? If your settlement was the result of a c
What state are you in? If your settlement was the result of a court order, it might be protected. You really should talk to an attorney.
I guess it ultimately depends on state law. Generally any asset
I guess it ultimately depends on state law. Generally any assets you own can be attached to the judgment, unless it is exempt per state law. Your personal injury award might be considered an asset, even if it's not yet tangible.
If you were paid already, and it's sitting in your bank account, then they probably can levy your bank account.
If you weren't paid yet, then they may be able to direct whoever owes you money, to pay them instead, until the judgment is satisfied. I don't know about other states, but these third party citations can be done here in IL -- kind of like a garnishment, just not for wages. And because it's not considered wages, there's no 25% cap.
You're probably best to consult an attorney to protect those funds.
I beleive only the wage portion could be garnished. The medical
I beleive only the wage portion could be garnished. The medical and the pain and suffering would not be.
Invest the money into a retirement IRA and the collectors can't touch it.
