Legal Question in Credit and Debt Law in New York

Yes. There are provisions in our Civil Practice Law and Rules which expressly permit judgment creditors to do just that. However, the judgment creditor first has to find out about your settlement. Considering the vast amount of credit card debt judgments out there, it's unlikely the settlement will be noticed. Even then, most credit card judgments are for relatively small sums of money so that using the legal system to intercept your settlement may be cost prohibitive.

Best of luck.