How do Child Support, Tax Liens and Bankruptcy Affect my Personal Injury Case?
November 16, 2023
(832) 592-1108
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.
Austin, Texas - Texas is already one of the most dangerous states for fatal 18-wheeler crashes, and major disruptions from trucking collisions are a near-daily occurrence. This morning, an 18-wheeler and six other vehicles collided near the Austin-area suburb of Georgetown . The severity of any injuries sustained in the commercial vehicle wreck has not yet been reported, but the crash and recovery efforts have led to the complete closure of southbound lanes on Highway I-35. The Texas Department of Transportation warns that traffic will be disrupted for hours. Just last month, commuters on I-35 suffered a major, multiple-fatality accident when a driver for an Amazon delivery contractor crashed his 18-wheeler into 17 other vehicles . Investigations continue into the cause of the crash. Despite the frequency and severity of 18-wheeler and commercial vehicle crashes in Texas, the State Legislature is considering new laws that would protect trucking companies from liability in these wrecks . When combined with other new legislation capping damages that result from these serious 18-wheeler accidents, Texans would be left even more vulnerable. If you have been injured in a serious truck or 18-wheeler accident in Texas, please call Wham & Rogers for a free consultation at 832-592-1108 .
Texas has led the nation in large truck crashes since 2017. Despite this, the Texas Legislature is considering bills that would sacrifice Texans' safety for commercial trucking and insurance company profits
A proposed Senate bill, pushed by insurance company lobbyists, would severely limit damages for victims involved in crashes with 18-wheelers, further tipping the scales in favor of insurance companies at the expense of Texans’ rights.
Five people were killed and eleven injured in a major, multi-vehicle collision on the evening of March 13th in Austin, Texas. According to NBC affiliate KXAN , one individual has been charged: "Police sources confirmed with KXAN the person arrested was the driver of a semi-truck hauling for Amazon. The driver involved in this incident is not an Amazon employee. … The owner of ZBN Transport LLC said Friday afternoon there’s been no contact with its semi-truck driver." (KXAN) According to Austin police, the alleged driver has been charged with multiple counts of intoxication manslaughter. Amazon, like many other large corporations, has chosen to expand its operations via an array of third-party contractors rather than relying solely upon employees. This provides the company with greater flexibility on pay and benefits, and may also seem like attractive way to reduce liability for accidents like the above. However, many large corporations have discovered that merely declaring a worker to be an “independent contractor” does not necessarily make it so. In one notable example, a court of appeals in Oregon ruled that Domino’s Pizza, Inc. was directly responsible for an accident caused by one of their franchisee’s delivery drivers, and could not disclaim liability . A decade later, the Supreme Court of Ireland found the same. Amazon has also faced legal scrutiny over its "Delivery Service Partner" program in the state of Georgia: "Jurors Thursday handed down a $16.2 million verdict at trial against Amazon Logistics and a service partner. ... Notably, jurors also concluded that Amazon exercised sufficient control over defendant Fly Fella Logistics to render the delivery giant liable ." (Courtroom View Network) To be considered truly “independent”, a contractor should exercise significant control over his own schedule, and be able to make decisions over how and when to provide services. When a company policy guarantees a specific delivery timeframe, or denies digital app or marketplace access to a contractor based on number of jobs taken per week, they may risk having the supposedly “independent” contractor being considered an employee. If you have been seriously injured by a commercial driver, or a contractor for a major corporation, the Texas 18-wheeler accident experts at Wham & Rogers, PLLC can help. Speak to an attorney today by calling (832) 592-1108 or leaving us a message on our contact page.
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.
Austin, Texas - Texas is already one of the most dangerous states for fatal 18-wheeler crashes, and major disruptions from trucking collisions are a near-daily occurrence. This morning, an 18-wheeler and six other vehicles collided near the Austin-area suburb of Georgetown . The severity of any injuries sustained in the commercial vehicle wreck has not yet been reported, but the crash and recovery efforts have led to the complete closure of southbound lanes on Highway I-35. The Texas Department of Transportation warns that traffic will be disrupted for hours. Just last month, commuters on I-35 suffered a major, multiple-fatality accident when a driver for an Amazon delivery contractor crashed his 18-wheeler into 17 other vehicles . Investigations continue into the cause of the crash. Despite the frequency and severity of 18-wheeler and commercial vehicle crashes in Texas, the State Legislature is considering new laws that would protect trucking companies from liability in these wrecks . When combined with other new legislation capping damages that result from these serious 18-wheeler accidents, Texans would be left even more vulnerable. If you have been injured in a serious truck or 18-wheeler accident in Texas, please call Wham & Rogers for a free consultation at 832-592-1108 .
Texas has led the nation in large truck crashes since 2017. Despite this, the Texas Legislature is considering bills that would sacrifice Texans' safety for commercial trucking and insurance company profits
A proposed Senate bill, pushed by insurance company lobbyists, would severely limit damages for victims involved in crashes with 18-wheelers, further tipping the scales in favor of insurance companies at the expense of Texans’ rights.
Five people were killed and eleven injured in a major, multi-vehicle collision on the evening of March 13th in Austin, Texas. According to NBC affiliate KXAN , one individual has been charged: "Police sources confirmed with KXAN the person arrested was the driver of a semi-truck hauling for Amazon. The driver involved in this incident is not an Amazon employee. … The owner of ZBN Transport LLC said Friday afternoon there’s been no contact with its semi-truck driver." (KXAN) According to Austin police, the alleged driver has been charged with multiple counts of intoxication manslaughter. Amazon, like many other large corporations, has chosen to expand its operations via an array of third-party contractors rather than relying solely upon employees. This provides the company with greater flexibility on pay and benefits, and may also seem like attractive way to reduce liability for accidents like the above. However, many large corporations have discovered that merely declaring a worker to be an “independent contractor” does not necessarily make it so. In one notable example, a court of appeals in Oregon ruled that Domino’s Pizza, Inc. was directly responsible for an accident caused by one of their franchisee’s delivery drivers, and could not disclaim liability . A decade later, the Supreme Court of Ireland found the same. Amazon has also faced legal scrutiny over its "Delivery Service Partner" program in the state of Georgia: "Jurors Thursday handed down a $16.2 million verdict at trial against Amazon Logistics and a service partner. ... Notably, jurors also concluded that Amazon exercised sufficient control over defendant Fly Fella Logistics to render the delivery giant liable ." (Courtroom View Network) To be considered truly “independent”, a contractor should exercise significant control over his own schedule, and be able to make decisions over how and when to provide services. When a company policy guarantees a specific delivery timeframe, or denies digital app or marketplace access to a contractor based on number of jobs taken per week, they may risk having the supposedly “independent” contractor being considered an employee. If you have been seriously injured by a commercial driver, or a contractor for a major corporation, the Texas 18-wheeler accident experts at Wham & Rogers, PLLC can help. Speak to an attorney today by calling (832) 592-1108 or leaving us a message on our contact page.
Up to 40% of all commercial truck accidents are caused by distracted driving. In 2018, there were 4,832 deaths caused by distracted truck drivers. That number was 4,977 in 2019 and 4,777 in 2020, according to the Federal Motor Carrier Safety Administratio n. The categories of distracted driving tracked by the FMCSA include: Talking or Listening to Cellular Phone Other Cellular Phone Related Using or Reaching For Device/Object Brought Into Vehicle Eating or Drinking Dialing/Manipulating Cellular Phone a Lost In Thought/Day Dreaming Adjusting Audio and/or Climate Controls Using Other Device/Controls Integral to Vehicle Distracted By Other Occupant(s) Careless/Inattentive Distracted By Moving Object in Vehicle Distraction/Careless Looked But Did Not See Smoking Related Cell phone use by truck drivers It’s important to note that the FMCSA prohibits texting and the use of handheld devices by truck drivers. Violations can result in fines, and even suspension of commercial driver’s licenses. Drivers who use handheld devices are 4x more likely to be in a serious crash. Text messaging increases the risk of a collision by 23 times. Cell phone use delays a driver’s reaction time as much as a blood alcohol concentration of 0.08%. How does distracted driving affect truck drivers’ performance? Distracted driving can slow the driver’s perception of traffic events, resulting in delayed reaction times. Slow reaction times may cause incorrect steering, too much brake pressure or inaccurate accelerator pressure. What can trucking companies do to reduce distracted driving by truck drivers? Require regular distracted driving training for drivers; Install distracted driving software which blocks use of social media, streaming video and texting while driving; Develop a distracted driving policy and require each employee to sign it, requiring them to agree to follow the policy. Enforce their distracted driving policy—and reprimand employees who fail to follow the policy. Educate dispatchers: Dispatchers shouldn’t expect immediate responses if drivers are on the road. Remind drivers to set their voicemail and call forwarding when on the road. Use driver facing cameras to ensure compliance with the safety rules. If you have been the victim of distracted driving by a commercial driver, Wham & Rogers can help you. We can rapidly respond to a collision in order to download the electronic control module and when necessary, download the phone of the distracted driver. Call 832-592-1108 or text (832) 413-1428 for a free consultation.
If you drive on Texas highways you have likely encountered some situations which you felt were unsafe or even dangerous. As a parent or grandparent, we especially worry about protecting our children from dangerous drivers, particularly from large commercial vehicles such as 18 -wheelers. How to protect your family while on the road with 18-wheelers: Be alert and aware of your surroundings when driving near 18-wheelers. Keep watch where the truck is and where other nearby cars are located and their movement. Being alert can give you time to move out of the way and to safety in the event of a collision. Don’t crowd 18-wheelers. When driving behind a semi- truck, leave enough space to stop in case the driver must slam on his brakes. You do not want to rear-end an 18-wheeler. Pass safely. When passing an 18-wheeler, stay closer to the shoulder than to the truck and pass as quickly as you can safely pass. If you linger next to the 18-wheeler, you may be in their blind spot. Don’t cut in front of a semi-truck. It takes large trucks a long distance to stop. Leave enough space between you and the truck so they can avoid hitting you in the event of a slowdown. Avoid the big rig’s blind spots. Large trucks have multiple blind spots, including the right side of the truck, directly in front of the truck, and directly behind the trailer. To protect yourself, stay out of these blind spots. The old adage is that if you can’t see the driver in the mirror, they can’t see you. Use your turn signal. Always use your turn signal when you are changing l anes or making a turn. Give the big rig driver sufficient warning of where you are moving to so he can avoid hitting you. If you travel in mountainous areas, you may have seen the runaway truck ramps. These ramps are there because trucks can have brake failures on steep slopes. Stay away from big trucks on both inclining and declining slopes to protect yourself in the event of a runaway truck. If you are sharing the road with a big truck and the road is steep, stay as far away as you can in the event of a brake failure. 18-wheelers take very wide turns due to their length. Give them enough space when they are turning so they don’t hit you. Here are some other safe driving tips to help keep you and your family safe while on the road: Avoid distractions, such as texting, applying make-up and eating; Watch out for and move away from drivers who are swerving or otherwise demonstrating that they are distracted by texting on their phone; Always make sure your child is in the proper car seat, even when traveling in someone else’s vehicle; Keep a proper distance between you and the vehicle ahead of you. Keep enough space to that if the traffic stops ahead of you that you have time to stop; Check your rear and side mirror often. You may be able to change lanes to avoid a collision if you are keeping a close lookout; Allow enough time to get to your destination so you don’t have to rush; Plan your route ahead of time and use voice-activated navigation systems so that you can focus on driving rather than searching for the road you need to turn on; Obey the posted speed limits; Take breaks—don’t become fatigued; Keep a first aid kit in your car and if you are traveling in desert areas, keep extra water in your car. If you are traveling in icy conditions, make sure you have the proper tires and chains, if required. Also, make sure you have blankets and other supplies to stay warm if you are stranded. The attorneys at Wham & Rogers have years of experience in 18-wheeler collision cases. Call 832-592-1108 or text (832) 413-1428 for a free consultation.
If you have sustained serious injuries due to someone else’s negligence, you should consult with a personal injury attorney right away. If you delay in retaining an attorney, you take the risk that evidence favorable to you will disappear. You also risk being misled or taken advantage of by the insurance company.
Don’t all employers in Texas have to carry worker’s compensation insurance? No. Texas is the only state that does not require private employers to carry worker’s compensation insurance. How do I find out if my employer carries worker’s compensation insurance? You can search the Texas Department of Insurance page here: https://www.tdi.texas.gov/ Many large employers such as Amazon, Walmart, HEB, McDonald's, Home Depot, Kroger, Target, Dollar General, Hobby Lobby, and Whole Foods are non-subscribers, meaning that they do not have worker’s compensation insurance. If you are employed by one of these companies and are injured on the job, you have a "non-subscriber" claim. I’ve been injured on the job and my employer is a non-subscriber. What rights do I have? You have the right to recover for all damages you suffered. Your recovery is not limited by the Texas Worker’s Compensation Act. As the employee of a non-subscriber, you must prove the negligence of your employer. Your employer has a duty to provide you with a safe workplace. If you are injured by your employer’s failure to provide proper safety equipment, failure to properly train your coworkers, or assigning you tasks outside your job description, you may be able to recover for your employer’s negligence which caused your injuries. If there is an on-the-job fatality, the family members of the worker who lost his life may be able to file a claim for wrongful death against the non-subscribing employer. When an employee is injured as a result of his or her employer’s negligence, the employee may recover more in damages than if the employer had worker’s compensation insurance. What damages can I recover in a non-subscriber case? A non-subscribing company may be sued for damages such as pain and suffering and medical expenses. The non-subscribing company may also be held liable for gross negligence or punitive damages. What defenses do non-subscriber employers have when employees are injured? Non-subscribing employers may not claim that their employees were contributorily negligent or that the employee assumed the risk of the dangerous activity they were assigned to do. Non-subscribers cannot escape liability for their employee’s injury because a coworker was at-fault. Non-subscribing employers are able to escape liability if an employee is intoxicated, reckless or deliberately caused their own injury. Can I sue my employer for an on-the-job injury if my employer has worker’s comp? No. If your employer has worker’s compensation insurance, your sole remedy is through the worker’s compensation system. At Wham & Rogers, we have years of experience handling non-subscriber cases. If you have been injured on the job and your employer is a non-subscriber, call us at 832-592-1108 or text us at (832) 413-1428 for your free consultation.
On the night of January 31st, drivers and passengers waiting at the intersection of East Sam Houston Parkway and Sabo Road were struck by an 18-wheeler . In addition to the truck, a further six vehicles were damaged in the collision, with at least two occupants, including a child, sustaining injuries. Tragically, one driver lost his life. The driver of the 18-wheeler reportedly left the scene rather than rendering aid to the victims . Fleeing the scene of a crash can severely increase legal penalties under these circumstances: hit-and-runs that result in death carry sentences up to 20 years in Texas. The suspect is still at large, but will probably be identified soon from security camera footage recorded before, during, and after the wreck. Beltway 8, of which Sam Houston Parkway is a part, has high definition cameras that record license plates at regular intervals. What should you do if you are hit by an 18-wheeler? If you have been in a collision with an 18-wheeler, it is critical to retain counsel right away to investigate the collision and to ensure evidence is preserved . In this situation, an attorney can send preservation letters to all vehicle owners who were involved in the collision to request preservation of dash cam video and electronic control modules. An attorney can also hire an investigator to canvas local businesses for video footage of the collision in order to track down the 18-wheeler driver and company.
Always order your crash report from a .gov site
