You can protect your personal injury settlement through careful planning and prudent decision-making. If you survived an accident and came out on the other side with a healthy settlement, the last thing you want to do is lose it to creditors, wage garnishment, divorce, or even your own poor decisions.
There are several steps you can take to protect your personal injury settlement. A personal injury lawyer with experience handling cases like yours can help you preserve your settlement.
How to Protect Your Personal Injury Settlement
Even a large settlement can quickly disappear if you mismanage it or fail to protect it from outsiders. A personal injury lawyer can advise you as to the best way to protect your money.
Protect Your Settlement from Creditors
If you have outstanding debts, you may be concerned that creditors will seize your personal injury settlement to repay them. In many cases, creditors cannot seize your settlement, but they might try. To protect yourself, keep your settlement in an account that is separate from your standard account.
Protect Your Settlement from Wage Garnishment
Just as you can protect your settlement from creditors, you can protect your settlement from wage garnishment. OCGA §18-4-5 limits how much money can be garnished from your weekly wages. Keep your settlement in a separate account to distinguish it from your wages.
Protect Your Settlement from Bankruptcy
OCGA § 44-13-100 protects a personal injury settlement of people who file for bankruptcy. This law protects up to $10,000 of your settlement for personal bodily injury from seizure during bankruptcy proceedings.
Protect Your Settlement from Divorce
Georgia is an equitable division of property state, which means that divorce proceedings should divide marital property between spouses in a way that is fair but not necessarily equal. In Campbell vs. Campbell, the Supreme Court of Georgia ruled that personal injury settlements can be considered both marital property and personal property, meaning you may have to share part of your settlement with your ex-spouse.
Because the division of assets, including a personal injury settlement, is so complex, you may wish to consult an attorney for assistance.
For a free legal consultation, call 404-214-2001
Structured Settlements vs. Lump Sum Settlements
During settlement negotiations, you may be able to choose between a structured settlement or a lump sum settlement. Each has advantages and disadvantages, so you may wish to talk to a personal injury lawyer about which type makes the most sense for you.
Lump Sum Settlements
A lump sum settlement provides you with the agreed-upon amount all at once. For example, if your settlement is for $100,000, you will receive a one-time payment of $100,000.
A lump sum settlement is more common in wrongful death cases or personal injury cases that do not require long-term treatments. In this situation, you can use the one-time payment to pay off your medical bills, replace your car, and pay off other expenses.
Structured Settlements
A structured settlement provides you with the agreed-upon amount spread out over time. Structured settlements may be paid out yearly, monthly, or quarterly over a specified number of years. For example, you may receive $100,000 paid out monthly over ten years. The terms of a structured settlement vary between agreements.
A structured settlement is more common in personal injury cases resulting in long-term injuries or disabilities that require multiple treatments or ongoing care. In these situations, you can rely upon regular payments to pay for upcoming surgeries, assistance with activities of daily living, and other anticipated medical expenses.
What Types of Accidents Result in Personal Injury Settlements?
Accidents happen every day, but only accidents caused by another party’s negligence result in personal injury settlements. Here are some common accidents that result in personal injury settlements:
- Car accidents
- Motorcycle accidents
- Dog bites
- Slip and fall accidents
- Golf cart accidents
- ATV accidents
- Boating accidents
In any of these situations, you must demonstrate that another party acted recklessly and irresponsibly and that their behavior caused your losses. More specifically, you must demonstrate that your case includes these elements:
- Duty of care: The other party had an obligation to act in a way that did not put others at risk of harm. For example, drivers must drive carefully to avoid putting other drivers and pedestrians at risk, and property owners must look out for and fix hazards such as ice or broken sidewalks.
- Breach of duty: The other party violated the duty of care and put others at risk. For example, a driver who speeds or fails to yield to oncoming traffic puts others at risk. Property owners who know about faulty sidewalks but neglect to repair them or warn visitors are negligent.
- Causation: Violating the duty of care directly caused the incident that injured you.
- Damages: The injuries caused damages, such as medical bills or property repairs.
Personal injury cases can be complex and challenging. Our personal injury lawyers can help you understand how much compensation you deserve and assist you in seeking and protecting a fair settlement. Contact Kaine Law today to learn more about our services.
Call or text 404-214-2001 or complete a Free Case Evaluation form
