20 Nov Car Wrecks and Child Support Liens
A personal injury settlement can be affected by a child support lien when the injured party, who owes child support, has outstanding child support payments or arrears. Here’s how it typically works.
Notification to the Child Support Agency
When an injured party is involved in a personal injury case, the state child support agency is often notified.
Child Support Creating a Lien
If an individual who owes child support receives a personal injury settlement, the state child support enforcement agency may place a lien on the settlement proceeds. This means that a portion of the settlement amount will be allocated to satisfy the past-due child support.
Distribution of Funds
In some cases, the child support agency may work directly with the injured party’s attorney or the insurance company to ensure that the child support lien is satisfied before the remaining settlement proceeds are disbursed to the injured party.
Priority of Liens
It’s important to note that child support liens often have a high priority compared to other types of liens. This means that, in the distribution of settlement funds, satisfying child support arrears takes precedence over many other debts and obligations.
State Laws Vary
Child support laws and regulations can vary by state, so the specific procedures for handling child support liens may differ depending on the jurisdiction.
It’s crucial for individuals involved in personal injury cases who owe child support to be aware of the potential impact on their settlement. Communication with both the personal injury attorney and the child support enforcement agency is key to understanding the specific obligations and ensuring compliance.
If there is a child support lien on a personal injury settlement, it’s advisable for the client to work closely with their attorney and, if necessary, the child support enforcement agency to address the lien and ensure that the proper legal procedures are followed in the disbursement of settlement funds.
Do you need a car wreck attorney?
The Hair Law Firm focuses on car wreck cases, representing clients daily, and filing lawsuits when necessary. If you or a loved one has been injured in a car wreck, contact the Hair Law Firm at (803) 881-3711.
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