Can Creditors Take Away Your Personal Injury Settlement?
After an accident, the settlement amount you obtain can help you pay for hospital bills and other related expenses. Clients, who owe debts, often wonder if their compensation can be subject to garnishment actions at the hands of creditors. Fortunately, under New York State law, personal injury settlements are partially exempt from the reach of most creditors. In other words, creditors are typically prohibited from seizing settlements to satisfy existing debts.
Protecting Your Compensation
If you declare a Chapter 7 bankruptcy, all non-exempt assets are eligible to be distributed for the payment of creditors in return for discharging unpaid debts. Individuals filing for bankruptcy can choose to apply for either New York State or federal bankruptcy exemptions. Typically, federal exemptions provide more generous guidelines than those within the state. Some important exemptions include:
Buffalo Personal Injury Lawyer News



As the number of claims filed continues to multiply, the Judicial Panel on Multidistrict Litigation has ordered all paraquat lawsuits to be consolidated. The paraquat multidistrict litigation, MDL No. 3004, will be administered by the Honorable Nancy J. Rosenstengel at the United States District Court for the Southern District of Illinois. The Judicial Panel on Multidistrict Litigation’s decision indicates that paraquat lawsuits are rapidly building momentum and could soon develop into a mass tort.
After being halted due to the COVID-19 pandemic, civil jury trials resumed throughout the state on March 22, 2021. For over fifteen months, courts were forced to drastically minimize their operations and transform legal proceedings into video-linked virtual conferences. All 16,000 members of New York State’s Judiciary have returned to their respective courthouses and other judicial facilities. However, courtrooms were forced to adopt a much different look than before COVID.




