Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Types of Liens on Indiana Personal Injury Settlements
When you obtain a personal injury settlement in Indiana, various entities can assert liens to recover amounts they paid on your behalf. A lien entitles a creditor to claim part of your settlement before you receive funds.
- Hospital Liens: Under the Indiana Hospital Lien Act (IC 34-55-1), hospitals must file a lien in the county recorder’s office within 90 days of patient discharge. This lien covers services related to the injury.
- Medical Provider Liens: Private doctors, therapists and facilities can assert statutory or common-law liens if they follow required filing procedures to secure payment for treatment.
- Medicaid and Medicare Liens: If Medicaid paid your medical bills, it has subrogation rights under IC 12-15-13-6. Medicare uses federal law (42 U.S.C. §§ 1396k, 1395y) to recoup conditional payments.
- Private Insurance Subrogation: Your health insurer may seek reimbursement under your policy’s subrogation clause for benefits it paid.
- Workers’ Compensation Liens: If you received workers’ comp benefits, the insurer can recover from third-party settlements per IC 22-3-2-22.
- Child Support Liens: Unpaid child support can trigger a lien under the Indiana Child Support Lien Act (IC 31-16-12), allowing interception of settlement proceeds.
- Federal Tax Liens: The IRS can assert a lien on your assets, including settlements, for unpaid federal taxes under 26 U.S.C. § 6321.
Priority hinges on lien recording date and statutory rules. Hospital liens, if timely filed, often take precedence over other medical liens. Federal tax liens attach automatically once the IRS files notice. Always verify each lien’s status before finalizing your settlement.
Helpful Hints
- Identify potential lienholders early and request detailed lien statements.
- Review insurance policies for subrogation terms and obligations.
- Seek lien waivers or negotiate reductions, especially with medical providers.
- Address Medicaid and Medicare conditional payments before settlement.
- Consult an attorney to resolve multiple liens and maximize your net recovery.