Liens and Seeking Lien Reductions – How Much of Your Injury Proceeds Will You Keep?

In personal injury cases, our clients are typically focused on how much a defendant is willing to pay in a settlement.  Most plaintiffs believe that attorneys’ fees and costs will be subtracted from the settlement, and that they will be entitled to the money that remains.

However, there often is one other consideration – the amount of money that must be re-paid in the form of statutory and contractual “liens.”  A medical lien is the right of a health care provider, doctor, hospital, or insurance company to assert an interest in personal injury recoveries of its patients, stemming from medical costs that have been incurred.  This is a critical factor that must be taken into account when a settlement is being considered.

What Are Liens and Lien Reductions?

Liens are legal claims asserted by creditors against a percentage of your settlement or judgment. A lien reduction involves negotiating with lienholders to decrease the amount they’re entitled to recover from your settlement or judgment.

Multiple factors, such as comparative negligence, limited insurance coverage, and similar circumstances, can warrant seeking a lien reduction. Many statutory lien holders agree to reduce their lien by a specific percentage, leaving you with more money in your pocket after everything settles.

How Liens Work in a Personal Injury Case

Suppose that an injured person has $100,000 in medical bills, and a defendant is willing to settle a case for $300,000.  The insurance company may have a lien for $100,000 against that settlement.  If the law firm is entitled to 33% of the proceeds of the settlement (or $100,000), then the injured client would receive $100,000 after accounting for both the attorneys’ fees and liens.

Our firm negotiates tenaciously with insurance companies and other statutory lien holders in seeking to get them to reduce the amount of their lien.  Often, statutory lien holders will agree to reduce their lien by a cetain percentage.

By working vigorously and seeking lien reductions, we are usually able to put more money into the pockets of our clients.

Types of Liens and How They Can Impact Your Injury Proceeds

Liens apply to a wide variety of cases, from workers’ compensation to slip and fall cases. Medical liens, Medicare or Medicaid liens, and workers’ compensation are just a few examples of the various liens that may arise in personal injury cases.  

Each type of lien can significantly impact the amount you receive in your lawsuit. When a lien is placed on your personal injury settlement or judgment, the lienholder asserts a legal claim to a percentage of the proceeds. This means that you, as the injured party, may have to satisfy the lien before you receive any compensation.

In some cases, your settlement funds may be distributed directly to the lienholder to satisfy the lien before any remaining proceeds go to you as the injured party.

How Much Can I Get My Lien Reduced By?

The amount you can get your lien on your personal injury case reduced varies based on factors specific to your case. Some cases may be eligible for higher reduction percentages, but it depends on the circumstances of the case. Our experienced lawyers will evaluate your case and negotiate with lienholders to reduce the liens as much as possible.

How a Lawyer Can Help With Your Case

Liens can significantly reduce the amount of compensation you receive in your settlement or judgment. After the lawyer’s fees and satisfying any liens placed on your settlement, you may not be left with much to cover the remaining expenses or compensate you for your experience.

This is where a skilled lawyer comes in. Our personal injury lawyers have an in-depth knowledge of the laws and regulations governing liens in Massachusetts. We understand the complexity of lien laws and will determine the best approach for addressing liens in your case based on relevant statutes, regulations, and case law.

We will gather applicable evidence, such as medical records, billing statements, and insurance documents, to support your case for a lien reduction. With this information and a strategic plan in place, we’ll negotiate with lienholders, advocating for your best interests to reduce the amount of the lien.

Your best interests are our top priority. We want to help you pursue the maximum compensation for your personal injury case and will leverage our negotiating experience to reduce liens on your case as much as possible.

What Strategies Will My Lawyer Use in Lien Reduction Negotiations?

Strategies your lawyer might use in your case’s lien reduction negotiations will vary based on factors specific to your case. Every case is unique, so different situations demand varying strategies.

For example, your lawyer might identify weaknesses in the lien lienholder’s claim and use them to negotiate a reduction. This might include challenging the validity of the charges included in the lien, disputing the lienholder’s right to assert a lien, or highlighting eros or inconsistencies in the lien documentation.

Talk to Our Knowledgeable Lawyers at the Fogelman Law Firm

Liens can significantly impact your case and the amount you walk away with when all is said and done. Lien reductions can help maximize the amount you receive, although navigating them requires diligence, expertise, and strategic negotiation. That’s where our knowledgeable lawyers at the Fogelman Law Firm come in.

We’re here to help you navigate liens on your case and maximize the amount you walk away with. If you need help with your personal injury case or navigating liens placed on it, talk to our experienced team. We offer free consultations to begin your case and help you determine your legal options. Contact us today to start with a free consultation.