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How do Child Support, Tax Liens and Bankruptcy Affect my Personal Injury Case?

Nov 16, 2023
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Understanding Finances and Personal Injury Cases

Child support, tax liens, and bankruptcy are complex financial matters that can significantly impact a personal injury case. When pursuing compensation for injuries sustained due to someone else's negligence, various factors come into play, and these financial obligations can influence the outcome of your case. 

Understanding how child support, tax liens, and bankruptcy may intersect with your personal injury claim is crucial to navigate the legal complexities involved. To help you understand and navigate these financial elements, the Spring personal injury attorneys at Wham & Rogers offer a helpful guide below. 

Understanding Finances and Personal Injury Cases


In the intricate landscape of personal injury cases, the interplay between finances and legal compensation stands as a pivotal factor that can significantly impact the outcome of a claim. The pursuit of justice and restitution for injuries sustained due to the negligence of others is often entangled with various financial considerations, from outstanding debts to tax obligations and familial support responsibilities.


From the intricate web of child support payments, which may encroach upon settlements, to the looming impact of tax liens that can diminish rightful compensation, and the intricate maze of bankruptcy proceedings affecting the allocation of settlements - each financial facet holds the potential to significantly alter the trajectory of a personal injury case. Below, we explore each of these financial elements.


How Does Child Support Affect a Personal Injury Case?


Child support is a legal obligation that parents have to support their children financially. When involved in a personal injury case, outstanding child support payments can affect any settlement or award received. In many states, unpaid child support can result in wage garnishment, property liens, or even incarceration. Courts prioritize child support payments, and if you owe back payments, your settlement might be subject to deductions to cover these arrears.


Upon winning a personal injury case, the opposing party might place a lien on your settlement to satisfy unpaid child support. This means that a portion or the entirety of your settlement could be allocated to cover these outstanding obligations before you receive any compensation. It's crucial to address any child support arrears before reaching a settlement to mitigate potential reductions in your compensation.


How Do Tax Liens Affect a Personal Injury Case?


Tax liens are legal claims imposed by the government when individuals fail to pay their taxes. These liens create a security interest in your property, including any settlement or award received from a personal injury case. The Internal Revenue Service (IRS) or state tax agencies can place a lien on your settlement to recover unpaid taxes. This can significantly diminish the amount of compensation you receive, as the government will prioritize satisfying tax debts over your personal injury claim.


In cases involving tax liens, negotiating with the IRS or state tax authorities before finalizing a settlement can be beneficial. Working with tax professionals or attorneys experienced in tax law can help in negotiating the reduction or removal of tax liens, potentially preserving a more substantial portion of your settlement for your personal injury compensation.


How Does Bankruptcy Affect a Personal Injury Case?


Bankruptcy is a legal proceeding that allows individuals or businesses to seek relief from overwhelming debt. If you've filed for bankruptcy or are in the process of doing so when pursuing a personal injury claim, it can affect the outcome of your case. Depending on the type of bankruptcy filed, the treatment of your personal injury settlement can vary.


  • Chapter 7: Chapter 7 Bankruptcy, often referred to as liquidation bankruptcy, involves selling non-exempt assets to repay creditors. Certain assets might be exempt, and upon completion, most unsecured debts are discharged, offering a fresh financial start.
  • Chapter 13: Chapter 13 Bankruptcy permits individuals with a regular income to devise a repayment plan over three to five years to pay off all or part of their debts. Debtors can retain their assets while adhering to the court-approved plan.
  • Chapter 11: Chapter 11 Bankruptcy is primarily used by businesses, allowing for reorganization to restructure debts and operations while continuing business operations under court supervision.
  • Chapter 12: Chapter 12 Bankruptcy is tailored for family farmers or fishermen, offering debt adjustment and a reorganization plan akin to Chapter 13, allowing these family-owned businesses to manage debts while continuing their operations.


Navigating personal injury cases while dealing with bankruptcy requires legal expertise to ensure the protection of your rights and assets. Consulting with both a personal injury attorney and a bankruptcy attorney is advisable to understand how bankruptcy proceedings might affect your compensation and financial obligations.


How a Personal Injury Attorney can Help Protect your Finances


There are certainly financial considerations that may impact your personal injury case. However, a personal injury attorney can be instrumental in safeguarding your finances in several ways when you are dealing with an injury claim. Here are some ways that a skilled Spring personal injury attorney can help you protect your finances:


  • Maximizing Compensation: A skilled personal injury attorney will assess the full extent of your injuries and losses, ensuring that all relevant damages, including medical expenses, lost wages, pain and suffering, and future costs, are factored into the compensation claim. This helps maximize the financial recovery you're entitled to.
  • Negotiating with Insurance Companies: Insurance companies often aim to settle claims for the lowest possible amount. A seasoned attorney understands these tactics and will negotiate aggressively on your behalf, aiming for a fair settlement that adequately covers your present and future financial needs resulting from the injury.
  • Understanding Legal Procedures: Personal injury cases involve complex legal procedures and deadlines. An attorney can guide you through the legal process, ensuring that all necessary paperwork is filed correctly and within the stipulated timeframes. Missing deadlines or making legal errors could jeopardize your case and financial recovery.
  • Handling Communication: Dealing with insurance adjusters or other parties involved in the case can be overwhelming and potentially detrimental if you inadvertently say something that harms your case. A personal injury attorney will handle all communication on your behalf, protecting your interests and preventing any statements that might be used against you.
  • Litigation Support: In case negotiations fail and your case proceeds to trial, having a skilled attorney by your side becomes even more critical. They will represent you in court, presenting your case persuasively and advocating for your best interests to secure the compensation you deserve.
  • Dealing with Liens and Debts: If you have outstanding medical bills or liens against your settlement, an attorney can negotiate with medical providers or lienholders to potentially reduce these obligations, ensuring that you receive a more substantial portion of your settlement.


The right personal injury attorney will act as your advocate, using their legal expertise to protect your financial interests, ensure you receive fair compensation, and navigate the complexities of the legal system, ultimately aiming to secure the best possible outcome for your case.


Get Help with Your Personal Injury Case


If you have questions about a potential or ongoing personal injury case, contact Wham & Rogers today. Our skilled Spring personal injury attorneys can help you focus on your recovery without the stress of navigating legal or financial complexities on your own. We have more than 60 years of combined experience helping injury victims obtain the compensation they deserve.


Not only are we skilled attorneys, but we are also fierce advocates for your wellbeing – now and in the future. Knowing that we are handling your case can provide peace of mind during this challenging time. Let us help you with your personal injury case by calling us for a free consultation at (832) 592-1108, or by reaching out to us online. 

What Should I Do After an 18 Wheeler Collision? - Woodlands Truck Accident Attorney

By Mark Wham • 22 Apr, 2024
Each year, 600 Texans are killed and 10,000 more are injured in trucking collisions. After a trucking crash, quick action is required. The trucking companies have legal teams ready to act after a crash occurs. They immediately send experts to the crash site, photographing and measuring the roadway and interviewing the witnesses. So if you or a loved one is injured or killed in a trucking collision, letters requiring preservation of evidence should be sent immediately to the trucking company and to its insurers. Your lawyer should retain experts to perform computerized mapping of the crash site and to download the electronic control module of the 18-wheeler. And then after that, a qualified trucking liability expert should be retained to address the federal safety regulations that are critical to handling a truck crash claim. If you've been hit by a truck or commercial vehicle in The Woodlands, Spring or Conroe, you need an experienced attorney on your side. Please give us a call at (832) 592-1108 for a free consultation, or submit the contact form here.

18 Wheeler Crashes - Truck Accidents in Texas

By Rene Rogers • 17 Apr, 2024
What are the Most Dangerous Vehicles on Our Roads? 18 -wheelers are the deadliest vehicles on our highways. Each year, 600 Texans are killed, and 10,000 more are injured in trucking collisions. It’s obvious why 18-wheelers are so dangerous. They weigh twenty to thirty times more than passenger cars, have a much higher ground clearance, and require twenty to forty percent further to stop. Do Truck Drivers Have to Comply with Higher Safety Standards? Because of these dangers, the Motor Carrier Safety Regulations require higher standards for commercial drivers; driving a Commercial Motor Vehicle requires a higher level of knowledge, skill, and physical abilities than is required of other drivers. Truck drivers must know the safety rules and follow them. Trucking companies must have safety policies and implement safety training programs. Truckers must conduct pre-trip and post-trip inspections of their trucks. Why is Quick Action Essential After a Trucking Collision? If you or a loved one is injured or killed in a trucking collision, quick action is required. The trucking companies have legal teams ready to act when a crash occurs. They send experts to the crash site, to photograph and measure the roadway, and to interview witnesses in order to try to minimize their liability. You need someone acting on your behalf to gather evidence and to ensure evidence is not destroyed. What Must be Done to Preserve Evidence Following a Collision With a Big Rig? Preservation of evidence letters should be sent to the trucking company and its insurers. Experts should be retained to perform computerized mapping of the crash site, and to download the 18 wheeler's electronic control module. A qualified trucking liability expert should be retained to address the federal safety regulation violations that are critical to handling truck crash claims. When we investigate trucking collisions, we often find that trucking companies fail to implement and follow adequate safety procedures, including failing to conduct the proper pre- and post-trip inspections. These failures to follow safety procedures often lead to otherwise avoidable collisions. Which Law Firm Should I Hire After an 18-Wheeler Collision? The attorneys at Wham & Rogers have the expertise and resources to handle trucking cases. We can get experts to the scene and have them gather data and download the electronic control module of the 18-wheeler before vital evidence is lost or destroyed. If you or a loved one has been in a collision with an 18-wheeler, the lawyers at Wham & Rogers can help you. Call 832-592-1108 or text 832-413-1428 for a free consultation.

Auto Pedestrian Collisions in The Woodlands - Attorney Video

By Rene Rogers • 13 Apr, 2024
Wham & Rogers, Texas Attorneys

How to Choose a Personal Injury Attorney

By Mark Wham • 09 Apr, 2024
1. Do I really need a personal injury lawyer? Yes, if you have a significant injury, choosing the right lawyer to handle your injury claim matters. Now more than ever, having the right lawyer can make a tremendous difference for the success of your claim. Insurance companies use sophisticated negotiation tactics to help them minimize your claim, or even avoid paying altogether. And make no mistake—the claims adjuster is not on your side. The adjuster, in a very real sense, is your opponent, and is specifically trained to make sure you don’t receive the maximum recovery you’re entitled to. 2. Does it really make a difference which lawyer I hire? Absolutely. The stronger your lawyer, the stronger your claim. Insurance companies keep track of which lawye rs have the experience, the resources, and the willingness to fight for their clients. They know which law firms are high-volume firms looking for a quick, easy settlement, and which lawyers are willing to do the hard work of fighting to get full justice. We have had clients contact us because a high-volume firm dropped their case after the insurance company “denied liability” and refused to pay quickly. 3. How do I find the best personal injury attorney? First, look at the lawyer’s qualifications and credentials. For example, the State Bar of Texas has a Board of Legal Specialization that certifies lawyers who are experts at handling personal injury claims. Fewer than 3% of Texas lawyers are Board Certified in Personal Injury Trial Law. You should also check the lawyer’s ethics. One of the best sources is Martindale-Hubbel’s attorney ratings. The highest rating is AV-Preeminent—which means the lawyer is considered ethical by his peers and has demonstrated the highest level of competence. Next, consider the size of the firm. If you are represented by a large law firm, chances are you will not be represented by the best, most experienced lawyer at that firm, and your case will instead be “handed down” to an associate for handling. Hiring a “boutique” litigation firm, with fewer lawyers handling fewer cases, will mean that the firm’s top lawyers are directly involved in the handling of your claim. Beware of firms that advertise “billions of dollars in past recoveries.” Quite often, those recoveries include class action case results, involving thousands of clients, with each client receiving a relatively small recovery. Look instead for a lawyer who has a record of achieving substantial recoveries for individual clients. Find a lawyer who has “been there, done that.” Specific experience is important, so look for a lawyer who has widespread experience handling serious injury claims, including wrongful death claims, truck crash cases, and complex cases involving complicated injuries such as paralysis and traumatic brain injury. Wham & Rogers attorneys have over 70 years combined experience in personal injury law. Mark Wham is Board Certified in Personal Injury Law. Rene Rogers has been AV Rated by Martindale-Hubbel for 30 years. Ryan Wham attended one of the best law schools in the country, the University of Texas School of law and was a member of UT’s prestigious Law Review. Prior to going to work for his parents at Wham & Rogers, Ryan worked at one of the largest law firms in the world. If you are looking for a highly qualified, experienced personal injury firm, contact Wham & Rogers for a free consultation. Call 832-592-1108 or text 832-413-1428 .
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The information on this website is for general information purposes only. None of the information on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. 

What Should I Do After an 18 Wheeler Collision? - Woodlands Truck Accident Attorney

By Mark Wham • 22 Apr, 2024
Each year, 600 Texans are killed and 10,000 more are injured in trucking collisions. After a trucking crash, quick action is required. The trucking companies have legal teams ready to act after a crash occurs. They immediately send experts to the crash site, photographing and measuring the roadway and interviewing the witnesses. So if you or a loved one is injured or killed in a trucking collision, letters requiring preservation of evidence should be sent immediately to the trucking company and to its insurers. Your lawyer should retain experts to perform computerized mapping of the crash site and to download the electronic control module of the 18-wheeler. And then after that, a qualified trucking liability expert should be retained to address the federal safety regulations that are critical to handling a truck crash claim. If you've been hit by a truck or commercial vehicle in The Woodlands, Spring or Conroe, you need an experienced attorney on your side. Please give us a call at (832) 592-1108 for a free consultation, or submit the contact form here.

18 Wheeler Crashes - Truck Accidents in Texas

By Rene Rogers • 17 Apr, 2024
What are the Most Dangerous Vehicles on Our Roads? 18 -wheelers are the deadliest vehicles on our highways. Each year, 600 Texans are killed, and 10,000 more are injured in trucking collisions. It’s obvious why 18-wheelers are so dangerous. They weigh twenty to thirty times more than passenger cars, have a much higher ground clearance, and require twenty to forty percent further to stop. Do Truck Drivers Have to Comply with Higher Safety Standards? Because of these dangers, the Motor Carrier Safety Regulations require higher standards for commercial drivers; driving a Commercial Motor Vehicle requires a higher level of knowledge, skill, and physical abilities than is required of other drivers. Truck drivers must know the safety rules and follow them. Trucking companies must have safety policies and implement safety training programs. Truckers must conduct pre-trip and post-trip inspections of their trucks. Why is Quick Action Essential After a Trucking Collision? If you or a loved one is injured or killed in a trucking collision, quick action is required. The trucking companies have legal teams ready to act when a crash occurs. They send experts to the crash site, to photograph and measure the roadway, and to interview witnesses in order to try to minimize their liability. You need someone acting on your behalf to gather evidence and to ensure evidence is not destroyed. What Must be Done to Preserve Evidence Following a Collision With a Big Rig? Preservation of evidence letters should be sent to the trucking company and its insurers. Experts should be retained to perform computerized mapping of the crash site, and to download the 18 wheeler's electronic control module. A qualified trucking liability expert should be retained to address the federal safety regulation violations that are critical to handling truck crash claims. When we investigate trucking collisions, we often find that trucking companies fail to implement and follow adequate safety procedures, including failing to conduct the proper pre- and post-trip inspections. These failures to follow safety procedures often lead to otherwise avoidable collisions. Which Law Firm Should I Hire After an 18-Wheeler Collision? The attorneys at Wham & Rogers have the expertise and resources to handle trucking cases. We can get experts to the scene and have them gather data and download the electronic control module of the 18-wheeler before vital evidence is lost or destroyed. If you or a loved one has been in a collision with an 18-wheeler, the lawyers at Wham & Rogers can help you. Call 832-592-1108 or text 832-413-1428 for a free consultation.

Auto Pedestrian Collisions in The Woodlands - Attorney Video

By Rene Rogers • 13 Apr, 2024
Wham & Rogers, Texas Attorneys

How to Choose a Personal Injury Attorney

By Mark Wham • 09 Apr, 2024
1. Do I really need a personal injury lawyer? Yes, if you have a significant injury, choosing the right lawyer to handle your injury claim matters. Now more than ever, having the right lawyer can make a tremendous difference for the success of your claim. Insurance companies use sophisticated negotiation tactics to help them minimize your claim, or even avoid paying altogether. And make no mistake—the claims adjuster is not on your side. The adjuster, in a very real sense, is your opponent, and is specifically trained to make sure you don’t receive the maximum recovery you’re entitled to. 2. Does it really make a difference which lawyer I hire? Absolutely. The stronger your lawyer, the stronger your claim. Insurance companies keep track of which lawye rs have the experience, the resources, and the willingness to fight for their clients. They know which law firms are high-volume firms looking for a quick, easy settlement, and which lawyers are willing to do the hard work of fighting to get full justice. We have had clients contact us because a high-volume firm dropped their case after the insurance company “denied liability” and refused to pay quickly. 3. How do I find the best personal injury attorney? First, look at the lawyer’s qualifications and credentials. For example, the State Bar of Texas has a Board of Legal Specialization that certifies lawyers who are experts at handling personal injury claims. Fewer than 3% of Texas lawyers are Board Certified in Personal Injury Trial Law. You should also check the lawyer’s ethics. One of the best sources is Martindale-Hubbel’s attorney ratings. The highest rating is AV-Preeminent—which means the lawyer is considered ethical by his peers and has demonstrated the highest level of competence. Next, consider the size of the firm. If you are represented by a large law firm, chances are you will not be represented by the best, most experienced lawyer at that firm, and your case will instead be “handed down” to an associate for handling. Hiring a “boutique” litigation firm, with fewer lawyers handling fewer cases, will mean that the firm’s top lawyers are directly involved in the handling of your claim. Beware of firms that advertise “billions of dollars in past recoveries.” Quite often, those recoveries include class action case results, involving thousands of clients, with each client receiving a relatively small recovery. Look instead for a lawyer who has a record of achieving substantial recoveries for individual clients. Find a lawyer who has “been there, done that.” Specific experience is important, so look for a lawyer who has widespread experience handling serious injury claims, including wrongful death claims, truck crash cases, and complex cases involving complicated injuries such as paralysis and traumatic brain injury. Wham & Rogers attorneys have over 70 years combined experience in personal injury law. Mark Wham is Board Certified in Personal Injury Law. Rene Rogers has been AV Rated by Martindale-Hubbel for 30 years. Ryan Wham attended one of the best law schools in the country, the University of Texas School of law and was a member of UT’s prestigious Law Review. Prior to going to work for his parents at Wham & Rogers, Ryan worked at one of the largest law firms in the world. If you are looking for a highly qualified, experienced personal injury firm, contact Wham & Rogers for a free consultation. Call 832-592-1108 or text 832-413-1428 .

Auto or Pedestrian: Who has the Right of Way?

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We are often asked whether pedestrians or cars have the right of way on pathways and at intersections. Many trails or pathways which cross intersections have stop signs. Pedestrians and bicyclists must obey these signs when they come to an intersection. When approaching an intersection, pedestrians should always stop and look both ways before crossing the intersection. If there is a traffic control device, pedestrians should always wait for the “walk” light to be illuminated before proceeding. Pedestrians, cyclists, and runners should slow down to allow enough time when nearing an intersection that is not controlled by a traffic signal.

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