How A Lien Can Affect Your Personal Injury Settlement

people negotiating on a claim

If you have been in an accident and were injured, you have the right to file a personal injury claim. This claim would allow you to seek compensation for losses due to being unable to work, medical bills, emotional distress, and other factors. But, if you have any outstanding liens, they can impact the amount of compensation from your personal injury case. Keep reading to learn how a lien can affect your personal injury settlement.

What is a Lien?

lienA lien is a claim or legal right to keep possession of property or funds that belongs to someone else until a debt or other obligation is satisfied. For example, if a hospital is owed money for treating you for accident-related injuries, the hospital can file a lien with the court to get the money you owe them. The lien places a hold on any money that may be obtained from your personal injury settlement.

When a company has a lien against you, you will find out because they will send you and/ or your attorney a notice. It is possible for these companies to take part or all of your compensation from your case. When you work with an experienced personal injury lawyer, they are usually able to negotiate the lien amount with the company.

Who Can Hold a Lien Against You?

You probably want to know what kind of companies can hold a lien against you. The most common parties that hold liens are:

Health Insurance Companies

Health insurance carriers are the most common parties that will hold liens against you. If you don’t have health insurance or your insurance doesn’t cover all of your medical bills, these parties will try to use your personal injury settlement to cover the expenses you owe.

Auto Insurance Companies

car insurance company

If your car insurance policy covers medical payments, the company may take out a lien to be reimbursed for payments over $5,000.

Medicaid and Medicare

Applicants for Medicaid are required to assign their payments for medical care from a third party to the state. If you are injured in an accident and don’t file a personal injury claim, the state may file a claim.

Hospitals

Hospitals have a right to file a lien under Tennessee law for any and all treatment rendered to you, as long as that treatment was for injuries sustained in your personal injury case.

How Can You Protect Your Settlement?

health insurance company

The best way to protect your personal injury settlement is to hire one of our personal injury lawyers. Our attorneys have been working in the personal injury area of law for over 20 years and know how to handle liens as they come up during a case. These lawyers will be able to negotiate with these parties to lower the lien to a fair amount and negotiate to get you the best possible outcome in your case.

Now you know more about how a lien can affect your personal injury settlement during your case. Have you been injured in an accident, and you’re ready to take the next step? Set up a free case review with one of our personal injury lawyers to discuss your options today.

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