Common Liens on Personal Injury Recoveries
When a party recovers money for a personal injury claim, they typically do not keep all of the money that is recovered. Indeed, attorneys often accept a percentage of any recovery in exchange for taking a case, and litigation costs must usually be paid back from any personal injury recovery. However, a number of other parties may also be entitled to receive money from a personal injury settlement or verdict. A personal injury lien is a legal claim that a party has to money that is recovered by someone to a personal injury lawsuit. Although there are a number of different liens that may be relevant to a given case, there are certain common liens on personal injury recoveries that personal injury plaintiffs should know about in order to best evaluate their cases.
Medicare/Medicaid Liens
Two of the common liens on personal injury recoveries are Medicare and Medicaid liens. If you are over the age of 65, it is very likely that you are a Medicare beneficiary. Medicare is a great resource, and Medicare covers many medical expenses that individuals over 65 might face. However, federal law requires that Medicare has a lien over any personal injury recovery that involves injuries for which Medicare has paid out medical costs. If a lawsuit involve a Medicare lien, it is important to notify Medicare about the claim as soon as possible. In addition, it is also critical to dispute expenses that Medicare believes are related to a personal injury lawsuit that might be unrelated to the matter. The Rothman Law Firm has substantial experience handling Medicare liens, and this ensures that the amount of the lien is as small as possible.
Medicaid beneficiaries may also have Medicaid liens placed on their personal injury recoveries. This may require that Medicaid be notified about any potential claim, and that Medicaid be paid for costs they covered, which are related to litigation. Depending on the extent of the injuries involved in a personal injury matter, Medicare/Medicaid liens can be substantial. Although Medicare and Medicaid liens are some of the common liens on personal injury recoveries, it is important to find a lawyer who is skilled at handling Medicare liens.
Healthcare Provider Liens
It is not uncommon for individuals to be uninsured, and seek medical treatment without the benefit of insurance coverage. With rising healthcare costs, people oftentimes struggle to pay for out-of-pocket medical expenses without the help of insurance. If an individual has received medical treatment that is not covered by insurance, and that person has not paid back their healthcare providers, those providers may have a lien against a personal injury recovery. Although certain notice requirements often must be satisfied to create a lien, this is another one of the common liens on personal injury recoveries.
VA Liens
Another one of the common liens on personal injury recoveries is VA liens. Individuals who have served in the armed forces are oftentimes entitled to VA benefits. Similar to Medicare/Medicaid liens, VA liens may be applicable to a personal injury recovery. The reasoning behind this is that the government should get its money back if the beneficiary receives compensation for injuries that were treated by the VA. A sizable amount of people of all ages receive VA benefits, and this is another one of the common liens on personal injury recoveries.
Workers’ Compensation Liens
Workers’ compensation liens are another one of the common liens on personal injury recoveries. Typically, if individuals are injured on the job, they are entitled to receive workers’ compensation benefits. In exchange, workers are usually not allowed to sue their employers for any negligence that may have caused their injuries. However, workers are usually allowed to sue other parties that may have been negligent in causing their injuries. For instance, a construction worker might not be able to sue his employer, but may be able to sue a building owner or a general contractor on a project.
However, state law typically requires parties to pay back the workers’ compensation board for any money they recover related to injuries covered by workers’ compensation. This policy prevents individuals from receiving a double recovery for their injuries, and ensures that workers’ compensation boards have the most money possible to assist injured workers.
Attorneys’ Liens
In some instances, clients change attorneys during the course of litigation. Sometimes, there is a break-down in the attorney-client relationship, and other times, clients simply find another lawyer with whom they are more comfortable. However, since most personal injury cases are based on a contingency agreement through which the attorney receives a percentage of any recovery, it might be difficult to ascertain how much money to which each attorney is entitled.
Most states have rules that all prior counsel can assert an attorneys’ lien over any recovery obtained in a case. Normally, the prior attorney needs to file an attorneys’ fees petition with the court hearing the underlying claim that details all of the time that attorney spent on the case. After reviewing all of the factors, a court will decide how much of the recovery will go to each of the attorneys who were involved in a case. This could be a messy process, and for this reason, it is uncommon for plaintiffs to change attorneys in the middle of a case. In any event, attorneys’ liens are another one of the common liens on personal injury recoveries.
The Rothman Law Firm has substantial experience negotiating liens to ensure that our clients receive as much money as possible from their personal injury settlement. If you are looking for an experienced New Jersey and New York personal injury attorney, please feel free to contact The Rothman Law Firm to request a free legal consultation.