After sustaining an injury through no fault of your own, you may decide to file a personal injury claim to recover monetary compensation for your damages. Victims are often burdened with various physical, emotional, and financial losses that negatively impact their life. To recover compensation for the losses they’ve endured due to an accident, they must fulfill the burden of proof. If successful, you may be entitled to significant compensation. However, a lien may be placed on your settlement proceeds which can hinder the amount you can take home from your case. Please continue reading to learn who can put a lien against your personal injury settlement and discover how our trusted Westchester County Personal Injury Attorneys can help you today. 

Who can impose a lien on your personal injury settlement in New York?

When you pursue legal action against a negligent party, you must satisfy the burden of proof. You will be burdened with proving that the other party’s actions directly caused your injuries. As mentioned above, if you can fulfill the burden of proof, you may be entitled to significant compensation. However, the amount you can take home from your settlement may be hampered by liens. A lien is a debt or money that must be paid out of your settlement proceeds. Often, a lien is placed on a personal injury settlement to ensure that those who rendered their services for your injuries are reimbursed. This is usually the case when you cannot cover the total cost of your medical expenses related to the accident.

It is critical to note that only certain parties can legally put a lien against your personal injury settlement. The following are the most common third-party entities that can place a lien on your settlement proceeds:

• Healthcare providers. Typically, healthcare providers will put a lien if you do not have health insurance or your policy cannot cover all the medical expenses associated with your accident. In this case, you may have to sign a lien agreement to obtain the necessary treatment and services. This agreement requires you to pay those who rendered service to you out of your settlement.
• Government-based benefit providers. Medicare, Medicaid, and other government-based benefit programs can place a lien on your settlement if they have footed the bill for all or some of your medical expenses.
• Private insurance providers. Sometimes, your insurance company may place a lien on your settlement if they cover medical bills for necessary treatments and services. It is critical to note that if your health insurance is a self-funded ERISA plan, your settlement will have an automatic lien.
• Workers’ compensation insurance providers. In some cases, the insurer who covered your lost income and medical costs can put a lien on your settlement.

If you have been injured in an accident due to someone else’s negligence, contact the legal team at Hausman & Pendzick today. Our firm can help you understand which parties can legally place a lien against your settlement proceeds.