Yes, a lien can be placed on the settlement or it can be garnished, and it can be used to satisfy child support obligations with one exception: any part or amounts of the settlement which are for medical bills cannot be used for child support--already-incurred medical bills are paid first. But portions for lost wages or "pain and suffering" can be used for child support. Make sure the relevant state agency is aware of this settlement, so they can take action.
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