A person in a wheelchair who suffered a personal injury disability.

Do Liens Affect Your Personal Injury Compensation?

Did you know that a third-party may claim a portion of your personal injury compensation in some cases? This can come as a surprise and shock to many plaintiffs, but this is relatively common in the world of personal injury.

When you think of liens in terms of the real estate sense, this may feel like a huge deal. However, with personal injury settlement liens, don’t think of it as someone trying to take control of what is rightfully yours.

Allow us to change your perspective a little on this. However, if you still feel confused, feel free to contact our personal injury lawyers for more information!

Understanding Settlement Liens

A lien, simply put, is interest exerted on an individual’s assets or property to fulfill a debt owed to a third party. In usual terms, this means land or other assets. With a settlement lien, a portion of the final settlement awarded to the individual will be given to the lienholder.

Don’t panic — this doesn’t mean your bank can swoop in and demand loan payments taken out of your injury settlement. Instead, this means that if a third-party paid your bills or compensated you for an accident and its effects, they may claim that amount of money from your settlement.

Who Could Lien Holders Be in Personal Injury Cases?

Third-party lien holders could be a range of organizations or parties, which includes the following:

Healthcare and Rehab Providers

If you haven’t paid your medical or rehab bills in full yet because your insurance has run out or you don’t have the means to, these service providers may impose a settlement lien to recover that amount.

However, usually, you won’t have to pay more than what your bills were, which is generally accounted for in your settlement amount.

Insurance Agencies

Your insurance policies might allow the insurance carrier to claim a part of personal injury settlements if you used your coverage during your recovery. This is true especially for health insurance policies provided by a workplace.

Worker’s Compensation Fund Carrier

A worker’s comp fund is usually set up to ensure that any injuries an employee suffers at work are taken care of by the company’s insurance. However, the insurance carrier may file a worker’s comp lien on your injury settlement for the same incident.

How to Address a Lien

Let your lawyer handle it. Your attorney will communicate with these organizations and ensure that the lien is a fair demand before complying with it. However, this process can include negotiation and conflict, which is why our personal injury lawyer in Silver Spring and Baltimore is your best bet.

At The Lincoln Law Group, we offer compassionate and ethical legal services of all kinds. From criminal defense lawyers to family lawyers and child custody lawyers in Baltimore, Silver Spring, and Washington D.C. we’re your go-to legal firm in the area. Call us at 8776199112 to schedule an appointment.

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