What is a Lien in a Personal Injury Case?

Posted July 14th, 2023.

Categories: Blog.

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If you are informed that you have a lien against your personal injury settlement, there is no reason to panic. This is actually a common occurrence in cases like these, and a Cherry Hill personal injury attorney can help you deal with liens or even contest claims that do not hold up under scrutiny.

What is a Lien?

A lien is essentially a debt. Someone says that you owe them money, so that debt is taken out of your personal injury settlement before it actually gets to you. Only certain types of entities can collect money in this way. Someone could also place a lien against your settlement if you previously gave them permission to, like through a signed agreement or contract.

Who Can Put a Lien on My Personal Injury Settlement?

A large portion of liens put on personal injury settlements can be considered “medical liens.” If you are pursuing a personal injury case, you probably had some injuries to treat. When you went to the hospital to get treated, the hospital or doctor may have decided not to charge you right away. Instead, they will put a lien on your settlement and take some money that way.

If you have some kind of health insurance, your provider could decide to ask for a lien after paying for services. For example, you go to the hospital and your private health insurance company pays $10,000 for your medical care. You get a settlement for $70,000. Your insurer can take that $10,000 that they spent back.

Can I Just Ignore a Lien?

This is not advisable. Ignoring a lien does not somehow undo its existence. Instead, you need to address it and find it whether or not it is a legitimate lien against your personal injury settlement. If it is not, you may be able to contest it in court.

How Can a Lawyer Help?

Your lawyer can do a lot to help you with your case. In addition to helping you win the best possible settlement, your lawyer will do everything that they can to help you keep as much of that settlement as possible.

That means negotiating and contesting liens. You can contest a lien when you think that it is simply wrong and that the entity in question should have no claim to any of your settlement. You can also decide to negotiate a lien. If someone does have a legitimate claim to part of your settlement, your lawyer can try to negotiate them a bit lower so that you can keep more of the awarded money.

Contact Our Law Firm Today

If you are ready to pursue a personal injury case of your own, our law firm can help. Contact the Law Offices of Mark S. Guralnick and schedule an appointment. We can evaluate your case and tell you more about how we can be of assistance.

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