Types of Liens in South Carolina Personal Injury Settlements
When you settle a personal injury claim in South Carolina, several lienholders may have a legal right to part of your recovery. Knowing which liens apply helps you plan and negotiate effectively.
1. Hospital and Medical Provider Liens
Under SC Code § 44-49-10 et seq., hospitals may file liens against settlement proceeds for emergency or inpatient services. See SC Code § 44-49-10. Other medical providers (doctors, clinics) can assert similar equitable liens based on unpaid bills.
2. Medicaid and Medicare Subrogation
The South Carolina Department of Health and Human Services can recover Medicaid expenditures via a lien under SC Code § 43-13-650 (SC Code § 43-13-650). Federal Medicare rights arise under 42 U.S.C. § 1395y(b)(2), allowing recovery of conditional payments.
3. Health Insurance and ERISA Subrogation
Private insurers often include subrogation clauses in health policies. Under ERISA-governed plans, insurers may recoup benefits they paid. Review your plan documents and ERISA regulations for specific procedures and notice requirements.
4. Attorney’s Fees and Litigation Costs
Attorney’s fees and court costs typically come from your gross settlement under the common fund doctrine. In South Carolina, Rule 1.5 of the Rules of Professional Conduct governs fee reasonableness and cost allocation.
5. Child Support and Family Support Liens
The South Carolina Department of Social Services can file liens to secure unpaid child support or alimony under SC Code § 62-11-410 (SC Code § 62-11-410).
6. Tax Liens
Federal tax liens under 26 U.S.C. § 6321 attach to all taxpayer property, including settlements. The South Carolina Department of Revenue can record state tax liens under SC Code § 12-54-120 (SC Code § 12-54-120).
7. Judgment Liens and Other Creditors
Any existing civil judgment or creditor lien recorded before your settlement may attach to proceeds. Check the county clerk’s records for filings against your name or case number.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney in South Carolina to address your specific circumstances.
Helpful Hints
- Request a lien ledger: Get an itemized statement from each lienholder.
- Confirm filing deadlines: Some liens must be recorded within strict timeframes.
- Negotiate reductions: Many providers will accept less than the full billed amount.
- Understand priority: Liens often pay in order of recording date or statutory ranking.
- Consult a lawyer: An attorney can help clear the title before disbursing funds.