What is a lien in a personal injury case in New Jersey?

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You may be entitled to significant compensation if you have suffered an injury through no fault of your own. When this is the case, you have the right to file a claim against the responsible party to recover monetary compensation for your damages. This compensation can help pay for accident-related losses such as medical costs, lost wages, pain, and suffering. However, a lien may be placed on your personal injury settlement in some cases, affecting how much you can take home from your case. If you have been injured in an accident due to someone else’s negligence, contact a skilled Middlesex County Personal Injury Attorney who can help you obtain fair compensation. Please continue reading to learn why a lien might be placed on your personal injury settlement. 

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

In a personal injury case, you will be burdened with satisfying the burden of proof. You must prove that the responsible party’s negligence directly caused your injuries. You may be awarded financial compensation for your economic and non-economic damages if successful. However, a third-party entity may put a lien on your personal injury settlement. A lien is a debt or amount that has to be paid out of your settlement proceeds to reimburse those that have rendered services to you for your injuries. For instance, a healthcare provider is a common source of liens. Suppose a victim does not have health insurance that covers the total cost of their medical expenses related to their accident. In that case, they might have to sign a lien agreement that allows them to receive necessary treatments but guarantees that the costs will be paid from the settlement proceeds if the case is won. Only certain parties can legally put a lien on your personal injury settlement. These third-party entities include:

  • Healthcare providers
  • Government-based benefit providers
  • Private insurance providers
  • Workers’ compensation insurance providers

It is critical to note that when you receive money from your settlement, it is intended to reimburse those who rendered services to you for your injuries. A lien ensures that these parties receive payment. In some cases, a lien can be negotiated. An experienced attorney may negotiate a lower amount for liens. However, these parties do not have to accept lower payments for their liens. Nevertheless, retaining the legal services of a qualified attorney will increase your chances of receiving a lower lien payment through negotiation.

If you have been injured due to someone else’s negligence, contact a talented Middlesex County personal injury attorney at Stathis & Leonardis today, who can help you understand which parties can legally place a lien against your settlement proceeds. Our firm is committed to helping our clients negotiate liens to maximize the money they can take home for their damages.

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