In the world of personal injury law, we talk a lot about liens. Personal injury liens are common practice when people need medical treatment after an accident. These liens can significantly impact the final settlement amount in your case, but many people are unsure about how they work and whether they can help or hinder your compensation. This blog will explain what personal injury liens are, who can place them, and how Deldar Legal can help you manage them!
What Are Personal Injury Liens?
Personal injury liens in California represent the legal right of a third party to claim a portion of the proceeds from a settlement or jury verdict. Essentially, when an injured person needs medical treatment, you don’t have to pay the bill. Healthcare providers agree to treat you “on credit” and they will be paid with future settlement funds. This includes hospitals, doctors, chiropractors, and other healthcare providers.
Credit Score Impact
Generally, personal injury liens do not directly impact your credit score. The lien represents an agreement to pay a debt from the settlement proceeds rather than a credit arrangement. Because the lien is paid directly from the settlement amount, there is no requirement for you to make payments from your personal finances. Therefore, the lien does not result in missed payments or defaults that could negatively affect your credit score.
A personal injury lien is a legal mechanism rather than a financial debt in the traditional sense. It is associated with the legal proceedings of your personal injury case and does not function like a credit account. While these liens are legally binding contracts, there are instances where payment reductions can be negotiated. However, this negotiation is best handled by an experienced personal injury attorney.
Can Personal Injury Liens Lead to a Higher Settlement?
The presence of personal injury liens can potentially lead to a higher settlement amount in some cases. Here’s how:
- Evidence of Serious Injury – The existence of substantial medical liens can serve as evidence of the severity of your injuries. This can strengthen your case and justify a higher settlement amount. Insurance companies and opposing parties often take into account the extent of medical treatment and associated costs when determining settlement offers.
- Medical Documentation – Personal injury liens are usually accompanied by detailed medical records and bills. This comprehensive documentation can provide clear evidence of the treatment you received, the costs involved, and the necessity of the services. This can bolster your case and support claims for higher compensation.
- Negotiation Leverage – Experienced personal injury attorneys can negotiate with lienholders to reduce the amount owed. By reducing the liens, more of the settlement can go directly to the injured party, effectively increasing the amount they receive.
Additionally, the presence of liens can sometimes pressure the opposing party to settle for a higher amount. Sometimes they will look at the case knowing that a portion of the settlement will go towards satisfying these obligations. At Deldar, we see this daily when dealing with insurance companies.
Handling Personal Injury Liens
At Deldar, we bring strength and compassion to personal injury cases. Our team specializes in these challenging cases and takes a proactive approach to manage every aspect, including lien negotiations. We dive deep into each lien, meticulously reviewing it for validity and accuracy. If we find any lien unjustified or the claimed amount excessive, we challenge it vigorously to protect your interests and ensure fairness.
With a proven track record, we skillfully negotiate with lienholders to reduce the amounts owed. This not only alleviates financial pressure but also significantly increases the net amount you receive from your settlement. Our primary goal is to maximize your compensation!
Closing Remarks
Personal injury liens are a common aspect of personal injury cases and can play a significant role in determining the final settlement amount. While they may initially seem like an obstacle, they can also provide leverage and evidence that supports a higher settlement. If you’ve been injured and are facing personal injury liens, don’t go through the process alone. Contact Deldar today for a free consultation at (844) 335-3271. Let us help you understand your rights and work towards securing the compensation you deserve!