If you’ve recently received or are expecting a personal injury settlement, you may be wondering whether your creditors can take a portion—or all—of that money. It’s a fair question, especially if you’re also dealing with medical bills, credit card debt, or other financial pressure. At Fox Injury Law, our Tucker personal injury lawyers have helped many injured clients navigate the legal and financial implications of their settlement, and we’re here to give you a clear answer: it depends on the type of debt and the status of your case.
Let’s explore when and how creditors might come after your settlement—and what you can do about it.
What is a personal injury settlement?
A personal injury settlement is financial compensation you receive after being injured due to someone else’s negligence. It may cover:
- Medical bills
- Lost wages
- Pain and suffering
- Future care or rehabilitation
- Property damage
Under Georgia law, these settlements are meant to “make you whole” by covering your losses—not to create extra income. But just because the purpose is restorative doesn’t mean it’s always protected from creditors.
Can creditors take my personal injury settlement in Georgia?
In Georgia, the answer depends on the type of creditor and whether the money has already been disbursed to you.
1. Unpaid medical providers (medical liens)
If you received medical treatment for accident-related injuries and haven’t paid the bill, the provider may file a lien against your settlement under O.C.G.A. § 44-14-470. This is one of the most common ways creditors access your personal injury funds.
Medical liens are legal claims that give healthcare providers the right to recover their costs directly from your settlement before you receive it. If your attorney is aware of the lien, they are legally obligated to satisfy it before giving you your portion of the funds.
2. Government agencies
If you owe child support or federal debts (like taxes or student loans), government entities may be able to garnish part of your settlement. These debts are often subject to garnishment orders, which your lawyer must honor when disbursing your funds.
Georgia’s garnishment laws, outlined in O.C.G.A. § 18-4-60, allow certain creditors to obtain a court order to claim money from legal settlements.
3. Private creditors (credit card companies, personal loans, etc.)
Most private creditors cannot take your personal injury settlement unless they sue you and obtain a judgment against you. Even then, the funds are often protected if they remain in your attorney’s trust account and haven’t yet been deposited into your personal bank account.
However, once you receive and co-mingle those funds—by depositing them into a regular account with other money—they may lose protection and become vulnerable to garnishment.
What happens if I file for bankruptcy?
If you’re considering bankruptcy, your personal injury settlement may be treated as part of your bankruptcy estate. However, some or all of the money may be exempt from seizure, depending on:
- When the injury occurred
- How much you received
- How the funds are classified (medical bills, pain and suffering, etc.)
In Georgia, certain personal injury awards may be protected under wildcard and personal property exemptions. If this applies to you, we recommend consulting a bankruptcy attorney alongside your injury lawyer.
How Fox Injury Law helps protect your settlement
When you work with Fox Injury Law in Tucker, GA, you’re not just getting a team that fights for your compensation—we also fight to protect it. We can:
- Identify and negotiate liens to reduce the amount you owe
- Structure your settlement in a way that minimizes creditor access
- Advise you on how to manage your funds so you don’t risk losing them unnecessarily
If you’re worried about protecting your settlement from creditors, contact Fox Injury Law today for a free consultation. We’ll help you understand your rights and safeguard your recovery every step of the way.
