What is a lien in a personal injury case?

Unfortunately, people can suffer catastrophic and life-altering injuries through no fault of their own. When this is the case, they are entitled to take legal action against the responsible party if they can prove the other party’s negligence directly caused their damages. If successful, they may be entitled to significant compensation as victims are often burdened with physical, emotional, and financial losses that negatively affect their lives. However, a third-party entity may sometimes put a lien on your settlement proceeds. If you have been injured in an accident due to someone else’s negligence, contact our talented ​​Washington, D.C. Injury Attorneys, who can help you fight for just compensation. Please continue reading to learn what a lien is against your settlement. 

What is a lien on a personal injury settlement?

If you file a personal injury claim, you may be awarded monetary compensation for your economic and non-economic damages if you can fulfill the burden of proof. However, a lien could be placed on your personal injury settlement. A lien is a debt or amount of money that must be paid out of your settlement proceeds to reimburse third parties that rendered their services to you due to your injuries. It is imperative to understand that liens are debts owed to certain parties as they may have paid for your medical bills for treatment for your injuries or your lost wages for the time you’ve had to miss work due to your injuries. Whatever the case, the money you receive in a settlement is intended to pay for their services. Therefore, a lien ensures that these parties receive reimbursement from your settlement proceeds for their services. Ultimately, it is critical to understand how a lien works, as it can affect the amount of money you take home from your case.

Who can put one against me?

Only certain parties can legally put a lien on your personal injury settlement, including healthcare providers, government-based benefit programs, private insurance providers, and workers’ compensation insurance providers. These are the only third-party entities that can put a lien against you to ensure their expenses will be paid out of your settlement if your case is successful. For instance, one of the most common sources of a lien is from your healthcare provider. When your health insurance policy does not cover the total cost of your medical expenses associated with the accident, you may have to sign a lien agreement. This agreement ensures the provider that they will be reimbursed from your settlement. It is critical to note that if your health insurance is a self-funded ERISA plan, there will be a lien on your settlement.

Contact an experienced attorney from Trombly & Singer, PLLC, today to protect yourself from liens and maximize your settlement. Personal injury cases are complex, don’t navigate them alone. Allow our firm to represent your interests so we can help you secure the fair compensation you are entitled to.