What Are Liens? Important Legal Terms Every Injury Lawyer In Waterloo Wants Clients To Know
When people get injured in any type of accident, lawsuits are the last thing on their minds. They should instead focus on receiving immediate treatment from medical professionals. Unfortunately, many injury victims don't get to pay for the medical services they receive. Since physicians who provide these services can't afford to work for free, they need to get paid irrespective of the injury victim's financial status. So, medical providers often place liens on injury victims' settlement. However, any service provider or third-party can place liens on settlement claims. A top Injury Lawyer in Waterloo can help plaintiffs negotiate with their lienholders. Here's a detailed guide -
What are Liens?
Liens are a type of debt that plaintiffs owe to specific people involved in their injury case. For instance, if a medical provider treats you for free, he or she can place a lien on your settlement amount. Unless you repay the medical provider's debt, the settlement amount doesn't belong to you completely. Until plaintiffs repay their lienholders' debts, they're open to receiving lawsuits. The lienholder can file a lawsuit against the plaintiff, claiming that their debts are still unpaid. The judges typically ask plaintiffs to take out whatever amounts are owed to the lienholders from the monetary compensation they receive from either verdicts or settlements. Relationships with lienholders can get very complicated when there are no experts involved in the discussions. That's why plaintiffs who owe debts to lienholders are advised to partner with an experienced Injury Lawyer in Waterloo.
Who are the Lienholders?
Apart from healthcare providers (the most common lienholders in the country), pretty much any creditor can place liens on plaintiffs' injury claims. For instance, if your health insurance provider steps in to pay for your treatment after you're injured, they're entitled to recoup whatever amount of money they paid for the medical services. Hence, health insurance companies can place liens on the settlements of plaintiffs who owe them money. The same applies to Medicare or Medicaid service providers. In some very rare cases, credit card companies, financial institutions, and even the IRS have placed liens on plaintiffs. These creditors become automatically entitled to the monetary compensations their at-fault debtors receive.
Negotiating with Lienholders
A top Injury Lawyer in Waterloo can help plaintiffs negotiate with their lienholders for favorable deals. For instance, let's say a medical service provider charges you $500 for treatment. The same medical service provider will charge insurance companies significantly less (let's say $400). That's just the nature of insurance companies' relationships with medical institutions. A top attorney can renegotiate the treatment fees with the medical care providers. They'll ensure that the sum owed by their client is $400, not $500.
The Need for Representation
Although a top Injury Lawyer in Waterloo can negotiate discounted rates with lienholders, the negotiations are almost never friendly. Lienholders are known for acting like insurance companies - they give plaintiffs a very hard time. So, having an attorney (preferably someone with prior experience in negotiating liens) by your side at all negotiations is extremely important for plaintiffs. For more information visit here: BLW Injury Law