Is a personal injury settlement considered personal earnings?
I received a notice of wage garnishment. I’m no longer employed because I am on disability. Can the creditor garnish the money out of my Settlement from a work related injury case?
NO, it is considered unearned income. As to the garnishment that would depend upon what your state statutes are. Some do allow for garnishment and some do not.
The wage garnishment could be waived as you are considered “judgment proof” if you are unemployed. The creditor would then have to refile to seize the funds from your bank accounts and that is only if permitted in your state.
If you are receiving SSDI then they can not touch those funds at all except for back taxes, child support or criminal fines owed.
You might want to call the court that issued the judgment and speak to them to find out for sure.
Hope this helps answer your question.
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