How Will A Personal Injury Lien Affect Your Case?
Navigating a personal injury claim can be stressful, especially when waiting months to hear your case’s final verdict. There’s also a chance you may not receive your settlement in full. A hospital, insurance company, or another party may file a lien to claim a portion of what you recover. Depending on the situation, a lien can significantly affect your case. Understanding what they are and how to negotiate them is crucial to securing the rightful compensation you deserve.
What Is A Personal Injury Lien?
A personal injury lien is when an organization claims a part of your settlement as reimbursement for emergency care or other damages it covered during your accident. While New York’s law requires you to pay certain lienholders, there will be situations where they might ask for more money than what you need to pay. Always consult with your attorney to find out how many liens you’re responsible for to negotiate a fair settlement.
How Will A Lien Affect Your Final Settlement?
Since you’ll need to give lienholders a share of your settlement, you’ll receive a lower settlement amount. As an example, say your final settlement was for $50,000. However, if you receive medical care for $10,000, your final payout is $40,000. Knowing how many liens you have is crucial to determine how much you’ll receive once your case has been settled.
Who Qualifies For A Lien In New York?
New York’s General Obligations Code §5-335 prevents your health insurance companies from claiming any settlement funds. However, this doesn’t apply if you used Medicare or Medicaid to treat your injuries.
The state’s restrictions also don’t cover private doctors, self-funded ERISA plans, and workers’ compensation carriers. If you visited a hospital and received medical care for your accident-related injuries, New York Code LIE §189 also states that the place can have a lien for unpaid medical bills.
Can You Legally Refuse To Pay A Lien?
You must repay a lienholder for the set amount as soon as possible. It can lead to further litigation and severe legal consequences if you don’t. Lienholders will also have the right to sue you for any unpaid liens. Not paying can even ruin your credit score if you aren’t careful. Before refusing to pay outright, try to negotiate with the lienholder for a reduced final payment.
How To Negotiate Your Lien
Negotiating with lienholders is essential to ensuring you receive a decent payout. For this to happen, you need actively communicate with them and come to an agreement where both sides are satisfied. However, there will be cases where lienholders refuse to lower the payment. If this happens, you can still ensure you’re fairly compensated by factoring in your liens as part of your settlement.
Our Lawyers Are Here To Help
Dealing with liens during your personal injury case can be challenging to navigate alone. For this reason, you need a skilled attorney who can guide you through the legal process. Our personal injury lawyers will help you negotiate with any lienholders and ensure you receive the compensation you’re entitled to. Please contact us online or call us at (800) 469-7429 to schedule your free case review today.