What is a lien in a personal injury case?

What is a lien?

A lien is a claim against your settlement that makes sure someone gets repaid. In an injury case, the people with a lien are usually those who paid for your care or agreed to wait for payment. The lien is paid from the settlement, so it comes out of the money before you see it.

What kinds of liens come up in injury cases?

The most common are medical, health insurance, and government program liens.

• Medical provider liens. A hospital or clinic may be owed for treatment, often when you had no insurance or treated on a promise to be paid from the settlement.
• Health insurance claims. If your health plan paid your bills, it may ask for repayment from what you recover. Plans differ, so the details of yours matter.
• Government program claims. Programs like Medicare or Medicaid may have a right to repayment for what they paid. These claims follow their own rules, and ignoring them can cause problems later.
• Other claims. Your own auto insurer’s medical payments coverage, or a workers’ compensation insurer, may also ask to be repaid.

How do liens affect my settlement?

They reduce what you take home. Say a case settles for a certain amount. Attorney fees and costs come out. Then the lienholders get paid. What remains is yours. That is why two settlements of the same size can leave you with very different net amounts. We will walk you through the math before you agree to a settlement. See our fees page for how fees work.

Can liens be reduced?

Often they can, but not always. A lawyer can ask the lienholder to accept less. Lienholders may agree for reasons such as the cost of getting the settlement, or because the recovery is limited. The rules vary by lienholder and by type, and some, such as government programs, have less flexibility. We review each one and negotiate where we can.

What if I have no health insurance?

Providers may still treat you on the understanding that they will be paid from your settlement. That creates a medical lien. It helps you get care, but those bills do need to be addressed. Read hurt in a car accident with no health insurance.

When do liens get paid?

At the end of the case, from the settlement funds. Your lawyer typically holds the money, pays the amounts that are owed and gives you the rest. See how settlements are paid out.

Could my settlement affect my benefits?

It can, depending on the benefits. Some need-based benefits look at lump sums. This is a different area of law and depends on your situation, so ask before you sign. Our page on SSI and settlements is a starting point.

What should I do about liens?

• Keep every bill and letter you get from a provider or insurer.
• Tell your lawyer about all insurance you have, including health, auto and any government coverage.
• Do not ignore a notice. A lien does not go away on its own.
• Ask questions before you accept a settlement.

Talk to us for a free case review.