What Is a Lien in a Florida Personal Injury Case?
The process of filing a Florida personal injury claim and recovering compensation can be complex. Apart from thinking about building your case, negotiating with the at-fault party’s insurance company, and presenting your case in court (if needed), you must also consider potential liens on your settlement or judgment. Liens are common in personal injury cases. After you win your personal injury case and get a settlement or jury award, you may notice a lien or liens on your settlement or jury award. This can seem unfair. However, liens are often legal. It is crucial that you understand how liens in personal injury cases work. Below, we explain what a lien is, who can place a lien on a personal injury settlement or judgment, how a lien can affect your compensation amount, and how an attorney can help when there is a lien on your personal injury settlement or verdict.
What Is a Lien?
Generally, a lien is a legal right or security interest a creditor acquires in your property. In a personal injury case, a lien is a claim held by a creditor against your settlement or judgment for reimbursement of damages they have paid on your behalf. After you are awarded compensation, the parties who placed liens on your payment receive their money even before you see your compensation. Generally, liens exist so companies or other entities can easily get what they are owed.
Who Can Place a Lien on Your Personal Injury Settlement or Judgment?
The following are some of the parties that can place a lien on your personal injury settlement or judgment;
- Health insurers: A health insurance provider might place a lien to recover what they have paid for your medical care. This applies to government benefits plans, such as Medicaid and Medicare, and private companies.
- Healthcare providers: If a hospital or healthcare provider agrees to treat you without charging you right away, you will need to sign a lien agreement allowing the hospital or healthcare provider to recover the cost of your treatment out of your personal injury settlement or award.
- Your attorney: If you agree to pay a contingent fee to your attorney, you will need to sign an agreement that gives your attorney a lien on your compensation amount.
How Can a Lien Affect Your Compensation Amount, and How Can an Attorney Help?
A lien will result in your compensation amount reducing. Suppose you recover $200,000 and your healthcare provider covered $50,000 in medical care. In such a case, you will recover $150,000 after paying the $50,000 lien.
However, an attorney can help negotiate liens to reduce them or dismiss them entirely. Apart from helping with negotiations, your attorney can help determine if a lien is legitimate. Some entities place liens on personal injury settlements and judgements just to take claimants’ money for no good reason. Your attorney can tell you which liens you must pay and eliminate illegitimate liens.
Contact Us for Legal Help
Our experienced Fort Lauderdale personal injury attorneys at The Pendas Law Firm can help you navigate the personal injury claims process and deal with liens. Contact us today to schedule a consultation and discuss your case.
The Pendas Law Firm also represents clients in the Miami, Jacksonville, Tampa, Fort Myers, Bradenton, Daytona Beach, Ocala, Orlando, Melbourne, West Palm Beach, and Naples areas.