Disclaimer: This article is for educational purposes only and does not constitute legal advice. For specific advice, consult a licensed Nebraska attorney.
Detailed Answer
When you reach a personal injury settlement in Nebraska, several entities may assert liens against your recovery. A lien gives a creditor a legal right to a portion of your settlement. Common liens include:
1. Medical Assistance Liens
If you received benefits under Nebraska’s Medical Assistance Program, the state may subrogate against your settlement to recover costs. Under Neb. Rev. Stat. § 68-1025, the Department of Health and Human Services can place a lien on your personal injury award to recoup Medicaid expenses.
2. Attorney’s Charging Liens
Under Neb. Rev. Stat. § 7-109, your attorney earns a charging lien on the judgment or settlement they secure. This lien ensures they receive legal fees before funds distribute.
3. Health Insurance and ERISA Subrogation
Your private health insurer may seek subrogation under federal law (ERISA) or state contract rights. They can pursue reimbursement for medical bills paid on your behalf. Review your insurance policy for subrogation clauses.
4. Medicare and Medicaid Liens
Federal Medicare law requires Medicare to be reimbursed for treatment related to your injury if it paid medical costs. See 42 U.S.C. § 1395y(b)(2)(B)(i). You must notify Medicare of pending settlements and reserve funds for lien satisfaction.
5. Child Support and Spousal Support Liens
Unpaid family support obligations can attach to your settlement. The Department of Health and Human Services may enforce arrears through liens under Neb. Rev. Stat. § 43-512.
6. Federal and State Tax Liens
The IRS or Nebraska Department of Revenue can file liens for unpaid taxes. The federal lien arises automatically under 26 U.S.C. § 6321 after tax assessments. Nebraska tax liens follow Neb. Rev. Stat. § 77-2006.
Before you close a settlement, identify all potential liens. Request written statements of lien amounts. Negotiate reductions when possible. Draft a settlement agreement that addresses lien satisfaction and net recovery.
Helpful Hints
- Request lien demand letters early to estimate your net recovery.
- Confirm each lien’s legal basis and priority.
- Negotiate lump-sum payoff or percentage reductions.
- Use escrow agreements to secure lien payments.
- Obtain lien releases in writing before disbursement.
- Consult a Nebraska attorney experienced in personal injury liens.