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  • Writer's pictureTom Fowler

How Do I Protect A Settlement?

If an individual has recently received a workers' compensation or personal injury settlement, they need to protect their money. The monies from their settlement are exempt. That means a creditor cannot retrieve it from them through bank garnishment or if they file for bankruptcy. It means they keep everything even if their settlement is thousands of dollars.

There are, however, some things they need to do to receive the protection. The initial step is to keep the money separate from other money, such as wages. If there are judgments against them, they need to deposit the money on a prepaid debit card.

Tom Fowler Law wants to protect and exempt their settlement monies from garnishment by creditors and the bankruptcy court. They need assistance in doing this, so be sure to provide truthful information when speaking to professional auto accident attorneys Des Moines provides.

Keep Funds Separately

Keep Funds Separately

Don't deposit money into an account. Be sure to place an injury settlement check into a segregated account to keep it safe from garnishment.

It is vital to keep any settlement money segmented and in a separate bank account. Do not mix up settlement money with any other finances. It is known as commingled funds and removes protection or exemption for this cash.

If a family member has income from other sources, be sure to keep that money away from the settlement account. Do not deposit it into the settlement account unless it can be documented. In other words, cash from another source or a traditional paycheck must not be deposited in this account.

As long as there is proof that the cash in the account is from the injury settlement, the person can keep it when filing for bankruptcy. It also protects an individual if a creditor tries to garnish it from them. There needs to be a paper trail of copies of the settlement deposit and check statements.

That shows that there is no other deposit other than the settlement check which entered the account. If someone attempts to garnish the report, contacting one of our bankruptcy attorneys is a good idea. Our professional lawyers are here to discuss solutions for any situation.

Use a Prepaid Debit Card

If any judgments are held against the individual, it is an excellent decision to deposit the settlement check on a prepaid debit card. A standard account could open up the possibility of garnishment through creditors.

Many people have judgment held against them by creditors. These people are required to deposit any personal injury settlement funds on a prepaid debit card. Creditors monitor traditional bank accounts, which could make them a victim of garnishment.

A large number of our clients have used prepaid debit cards successfully. These cards can be obtained by NetSpend or Wal-Mart and only take a few minutes to sign up.

This card must be a prepaid card and cannot be tied to saving or checking accounts. While there are monthly fees for this convenience, at least a collection agency does not access the money. These cards have no attachment to federal or government agencies that could retrieve debts.

Again, it is imperative to keep a paper trail of deposits. That helps to show that the money on the particular card is only the injury settlement. Be sure to make no other deposits onto the prepaid card, as it might flag the account for garnishment.

Let Tom Fowler Law Help

If there are any questions on how a personal injury settlement claim works or someone needs help in a case, Tom Fowler Law is here to help. The qualified staff is knowledgeable and compassionate when dealing with instances of this nature. With years of experience in personal injury law, they can assist in protecting the compensation.


Knowing how to manage money can be an arduous task. After paying for the bills involved in the settlement like Medicare fees and legal fees, figuring out how to store an injury settlement can be even more difficult. That is why Tom Fowler Law is here to aid in collecting and protecting these funds.

Come to Tom Fowler Law to secure any compensation while remaining anonymous to creditors. Every day they help various people who have suffered from a personal injury due to the negligence of a third party. They have a solid reputation in Iowa, and the lawyers are ready to help at a moment's notice.


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