Will my personal injury settlement check be protected from my creditors?

In NC, proceeds received from a personal injury (“PI”) settlement are exempt from execution except as to medical providers who provided services related to the injury for which the settlement was obtained. In a bankruptcy case, the Trustee will not seize or liquidate PI proceeds except to pay medical bills incurred for services related to the injury. However, PI checks should be deposited to a separate account. If the PI funds are commingled with other funds then they may no longer be exempt. Also, the PI funds lose their exempt status once they are used to purchase other assets. Any assets that are purchased will be exempt- or not- depending on the type of assets they are.