A lien on a personal injury case is a legal claim that allows certain parties to be repaid from your settlement or judgment before you receive the remaining funds.
Often, medical providers have liens for the cost of the medical care they provide to you for injuries suffered in a wreck. A Greenville personal injury lawyer from Smith Jordan Attorneys at Law can explain how liens work in South Carolina personal injury claims.
What is a lien in a personal injury case?
In a personal injury case, a lien means a third party has a legal right to be repaid from part of your settlement. There are several types of liens. Most medical providers require patients to sign forms before they are treated. These forms usually include a document giving the medical provider a lien for the cost of the medical treatment on any insurance proceeds.
Health insurance policies usually include a lien in the plan documents, giving the health insurance company a lien on any third-party insurance coverage if the medical care is necessary because of an injury. Health coverage provided by the government, such as Medicare and Medicaid have statutory liens entitling these programs to be paid back for medical treatment arising from an injury.
Common lienholders include hospitals, doctors, government programs, and your health insurance company. These liens are tied directly to the injury claim and must be handled before settlement money is paid out.
Who can assert a lien on my personal injury claim?
Several types of creditors may assert a lien depending on your circumstances:
- Hospitals and medical providers for medical expenses or emergency treatment
- Insurance companies that paid your bills under your health insurance coverage
- Government programs such as Medicare or Medicaid
- Workers’ compensation carriers
Each has specific rules governing how and when they can enforce a lien, making it crucial to work with a knowledgeable personal injury attorney.
Why do medical liens exist?
When you are injured and have received medical treatment, someone must initially pay for your care, whether it is you, a provider offering treatment on credit, or your insurer. If your health insurance covered the costs, or if a provider treated you with the expectation of repayment, they want to be reimbursed once your personal injury claim resolves. A lien makes sure those bills get paid once your case is over.
How do liens affect my personal injury settlement?
Liens are paid before you receive your share of a settlement. Your health insurance company may request reimbursement for medical expenses from the settlement proceeds. The amount you ultimately receive depends on:
- The total value of your settlement
- The number and type of liens
- Whether your personal injury lawyer can negotiate reductions
An experienced personal injury attorney can often reduce lien amounts. Then, you receive the remaining funds after satisfying all valid liens.
Can lien amounts be negotiated?
Yes. In many cases, lienholders will accept reduced repayment amounts, especially when the settlement is limited or when liability is disputed. Attorneys frequently negotiate medical liens, hospital charges, and insurance reimbursements as part of maximizing your recovery. This is one of the biggest advantages of hiring a skilled attorney to handle your injury claims.
Do liens delay the settlement process?
Liens usually do not delay reaching a settlement, but they can delay when you receive payment.
Before funds are released, all outstanding liens must be addressed. This helps avoid future legal problems and ensures the settlement is properly closed.
Do I need a lawyer to deal with liens?
You are not required to hire a lawyer, but liens can be hard to manage on your own.
A personal injury attorney can review lien claims, confirm whether they are valid, negotiate reductions, and make sure state and federal rules are followed. This helps protect your recovery and prevents overpayment.
What is the difference between a statutory lien and a contractual lien?
The difference comes down to how the lien is created.
- A statutory lien is created by law. Examples include hospital liens or liens from Medicare or Medicaid, which follow strict legal rules.
- A contractual lien comes from an agreement, such as language in a health insurance policy that allows the insurer to recover money it paid for your care.
Different rules apply to each type, which is why careful review matters.
Contact Smith Jordan Attorneys at Law for a free case evaluation
Liens are common in South Carolina personal injury cases, but they can be confusing and stressful. Our attorneys take the time to explain how liens work and what they mean for your settlement.
If you have questions about liens or need help with a personal injury claim in Greenville or Easley, call Smith Jordan Attorneys at Law at (864) 343-2222 or contact us online. We offer free consultations.