It’s vital to understand what liens are and in which way they can affect your personal injury settlement. As a matter of fact, liens play an important role in how much money you end up going home with.
A lot of injured victims know that an attorney’s responsibility is to negotiate a fair settlement through the insurance company. However, a good attorney is also going to negotiate with your lienholders and oversee this process for you, too.
What is a Lien on a Personal Injury Settlement?
A lien is a claim placed towards an asset. We typically think of liens with regard to real estate. For example, if a homeowner sells their home, they are required to pay off the balance due on the mortgage. In this case, the mortgage is a lien and the financial institution that owns it, the lienholder.
In regard to a personal injury settlement, you might have lienholders. These lienholders are the providers that covered the costs of your medical care and other services with the agreement that they would be paid when you get your compensation for your injury claim. Simply put, they are declaring a claim on your anticipated settlement.
On the surface, a lien sounds like a bad thing, nearly identical to a debt. Ultimately, you are responsible for satisfying any liens you might have when you finally receive your settlement. Nevertheless, a lien enables you to receive medical care with no upfront costs. Meaning you are able to get treatment for your injuries devoid of the weight of mounting doctor and hospital bills.
Who could put a Lien on my Injury Claim?
Some entities that might be able to put a lien on your injury claim could include:
- Hospitals
- Your health insurance company
- Your auto insurance company
- Doctors, chiropractors, and other health providers that treated you
There are some distinctive cases in which additional lienholders may affirm themselves. For example, if you’re in arrears on child support payments, a lien might be placed.
How does a Lien Affect my Personal Injury Settlement?
A lien is a financial liability. When you get your settlement, you are required to pay each lienholder. Simply put, liens affect your settlement by decreasing the amount you are left with.
Imagine you’re offered a settlement of $25,000. This doesn’t mean that you are going to end up with that $25,000 in your bank account. Initially, you are required to pay your lienholders. Say you have gone to the hospital and see a physical therapist. Together, you are in debt to both lienholders $10,000. Should you work with an attorney, attorneys’ fees would also come out of this amount.
It’s important to bear that in mind as your settlement negotiations move forward. Once your attorney lets you know your insurance company has put an offer on the table, you may additionally want to inquire what you are going to anticipate paying in liens. This is going to give you a better idea of how much you are going to personally take home.
Dar Liens Offers Lien Processing and Filing in Arizona
Dar Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner, Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.
