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Following a collision, victims are often burdened with physical, financial, and emotional burdens that negatively impact their lives. If injured due to someone else’s negligence, you can file a personal injury claim to seek monetary compensation for your economic and non-economic damages to help pay for medical costs and other losses from the collision. However, many victims neglect to realize there may be “liens” on their personal injury settlement that must be paid out to settle their debts for services provided to them due to their injuries. This can affect the amount you can recover for your damages. To protect your award, contact a skilled New York City Personal Injury Lawyer who can help you understand what liens entail. Please continue reading to learn why victims sometimes have to pay liens. 

What is a lien on a personal injury settlement in New York?

A lien is a debt that must be paid out of a personal injury settlement, as statutorily, certain debts must be reimbursed after an accident. Healthcare providers, government-based benefit providers, and private insurance providers can all put a lien against you if these third-party entities cover your medical expenses if your insurance cannot cover the total cost of your medical bills for your injuries from the accident. Workers’ compensation insurance providers can also put a lien against you if you were injured or became ill on the job, and the insurer who covered your lost wages wants to ensure they can recover their expenses.

When you receive a settlement, a portion of that money is indeed to pay for the medical services provided for you. Therefore, a lien helps ensure that the medical professionals who rendered service receive payment. It is critical to note that if you do not pay a lien, you could be sued and jeopardized when applying for health insurance or a government-based benefits program.

Can they be negotiated?

Following an accident, it is in your best interest to retain the legal services of an experienced lawyer who can help you understand who can legally place a lien against you. This will help protect your proceeds from your settlement. Nonetheless, in some cases, your lawyer may be able to negotiate a lower payment for medical and health insurance clients. However, that does not mean these third-party entities will accept lower costs for their liens. Nevertheless, you can maximize your chances of receiving a lower lien payment through negotiation by working with a qualified lawyer who understands the complexities of liens. If successful, the provider may accept a lower payment, saving you a significant amount of money from your settlement.

If you have been injured due to someone else’s negligence, contact a talented lawyer from the law firm of James Newman, P.C. today. Our firm is committed to helping our clients fight for just compensation and understand their financial obligations regarding liens.