If one wins a personal injury lawsuit resulting in his or her receiving an award of money damages, is this monetary award taxable or attachable by creditors?
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If one wins a personal injury lawsuit resulting in his or her receiving an award of money damages, is this monetary award taxable or attachable by creditors?
Quote:
Originally Posted by oespanhol1
Yes, any money you receive from any source (insurance settlement, inheritance) can be attached by creditors. It is money that belongs to you and can be used to pay a debt that you owe.
As far as taxes - it depends on just what the settlement amount is for. Pain and suffering? No. Reimbursement of medical expenses (if you have itemized a tax return and listed those expenses), yes.
I'm an accident investigator - your Attorney should be able to write the settlement in such a way (or the Release) that the tax situation is diminished as much as possible.
[QUOTE=hjpan]Quote:
Originally Posted by oespanhol1
You are legally incorrect - no more info is needed and the seriousness of the accident has nothing to do with how the settlement is treated.
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