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What are Liens? And why are they important in a personal injury case?

What are Liens? And why are they important in a personal injury case?

Liens are the amount of money you must pay back to your insurance companies that helped pay for your damages before your personal injury settlement. After your accident, you will likely have various insurance policies of your own that help pay for bills incurred from your accident before you reach a settlement or a verdict. There are several different types of liens and different rules for how to deal with them.

  1. Government Liens
    • In general, if a government program pays for any of your medical care (Medicare or Medicaid), they need to be paid back. Agencies have different rules when it comes to lien repayment and the process can be complex, especially with Medicare. 
  2. Insurance Liens
    • Insurance companies – health, auto, and others – are also required to be paid out of your settlement for amounts that paid on your behalf. Again, there are different sets of rules that might apply. Oftentimes, your attorney can negotiate the amount using leverage from particular statutes or the facts of your case. 
  3. Hospital Liens
    • Liens for hospital bills get their own set of rules, and to be valid, the hospital must follow specific guidelines. There are also financial caps, which hospitals are required to comply with.

Dealing with your own insurance company’s liens is a difficult process. Having an attorney familiar with how to negotiate these liens is important for the bottom line of your personal injury case. 


Disclaimer: The content of this blog is intended to be general and informational in nature. It is advertising material and is not intended to be, nor is it, legal advice to or for any particular person, case, or circumstance. Each situation is different, and you should consult an attorney if you have any questions about your situation.

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The sidewalks and curbs around the Columbia Center will be under construction through June 2023.