Yes. A lien can be placed on the proceeds from your personal injury settlement for child support and taxes. Some of the liens that can be deducted from a personal injury settlement are liens for medical bills incurred as a result of the accident, liens from companies that advance money to those expecting personal injury settlements, child support, taxes, Medicare liens for payments made towards the medical bills as a result of the accident, health insurance liens for payments made towards medical bills incurred as a result of the accident.
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We have had these situations arise before for Personal Injury matters our firms have handled. Generally, the liens come directly from the agencies to our firm. Under some situations, the lien holder's name is added to the check for the proceeds of settlement from the BI or UM carrier if the insurance company is notified.
If you have been notified of the lien by the agency, then you have to advise your attorney. Your attorney may then be able to negotiate down these liens, which we have done successfully before on behalf of clients as well.
The lien itself should not affect your ability to settle the matter, but will have to be resolved and cleared before the proceeds of settlement can be distributed to you, at least those amounts liened. You should speak with your personal injury attorney about this matter since he or she would be in the best position to advise and assist you regarding this issue.
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