Understanding Personal Injury Liens in Utah
When it comes to personal injury cases—whether involving car accidents or dog bites—liens can make or break your case. Managing these liens is critical to avoid potential pitfalls that could derail your claim. As an experienced Utah personal injury attorney, I understand the complexities of these liens and how to handle them effectively to maximize your compensation.
What is a Personal Injury Lien?
A lien is a legal mechanism that secures a debt. In personal injury cases, liens arise when a creditor or medical provider agrees to wait for payment until the settlement is resolved. Just like with mortgages or car loans, the lien holder has a legal right to claim payment from the settlement before funds are distributed to you. Mismanaging liens can lead to lawsuits against both the client and the attorney.
Types of Personal Injury Liens
- Medical Liens
Medical liens arise when healthcare providers offer services on the promise of being paid later through the case’s settlement. Common examples include chiropractic care, physical therapy, and specialized procedures like scar revision or knee surgery. While necessary, these liens often come with added costs since providers must wait months or even years to receive payment. - Private Health Insurance Liens
Despite paying hefty premiums, private health insurers often demand repayment from your settlement if they cover medical expenses caused by someone else’s negligence. For example, if your insurance pays $20,000 in medical costs after a car accident, they may require full reimbursement from your settlement—even before accounting for your legal fees. - Medicaid Liens
Medicaid liens are governed by state and federal law. If Medicaid covers your injury-related care, you must repay the amount spent once you receive a settlement or judgment from the at-fault party. - Medicare Liens
Like Medicaid liens, Medicare liens must be resolved before any settlement money is released. However, Medicare can be notoriously difficult to deal with, often requiring months to finalize balances and negotiate reductions. - Funding Liens
Funding companies provide loans to personal injury victims who need immediate cash for living expenses or care. These loans come with high interest, adding more pressure on the settlement. - Hospital Liens
Utah hospital liens are statutory, filed under Utah Code Ann. 38-7-1, giving hospitals the right to claim a portion of the injury settlement. These liens are filed in court and must be resolved before the settlement is disbursed.
Managing and Reducing Personal Injury Liens
Resolving liens is crucial because the attorney cannot distribute settlement funds until all liens are paid. I negotiate aggressively with lien holders, often securing reductions by up to 1/3 to account for the attorney’s work in recovering the settlement. Without an attorney, lien holders would rarely see any payment, giving us leverage to push for reductions.
However, not all lien holders cooperate immediately. In some cases, it takes months—or even years—before a lien holder agrees to reduce their claim.
Example of a Lien Scenario
Consider a rear-end collision case. You go to the ER and then receive chiropractic care. With $3,000 in Personal Injury Protection (PIP) benefits from your car insurance, the ER bill ($1,000) and part of the chiropractic care ($2,000) are covered. However, the chiropractor bills an additional $1,000 on a lien basis. When the case settles for $10,000:
- The attorney collects $3,300 under the contingency fee agreement.
- Case-related expenses, such as records requests ($50), are reimbursed.
- The remaining $6,650 must cover all liens before the client receives the final payout.
With my experience, I may negotiate the chiropractor’s lien down to $666, resulting in more money in your pocket.
Securing Medical Care Through Liens
I’ve successfully secured physical therapy on a lien basis for clients who couldn’t afford care. In one case, a client required knee surgery without insurance coverage. With surgery funding secured through a lien, my client recovered physically—and we later recouped the medical expenses from the settlement.
Why Choose Attorney Jacob S. Gunter?
Managing personal injury liens is complicated, but with my experience, I can help you navigate the process and secure the best outcome. My goal is to reduce lien amounts, maximize your compensation, and ensure your recovery isn’t delayed by legal red tape.
You pay nothing unless we recover a settlement.
Call me at (801) 373-6345 to schedule a free consultation. Let’s discuss your personal injury case and how we can handle liens to protect your financial future.
Visit: www.provolawyers.com or gunterinjurylaw.com for more information.