Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a Utah-licensed attorney for guidance specific to your situation.
Detailed Answer
When you settle a personal injury claim in Utah, various parties may assert liens against your recovery to secure repayment. A lien gives a creditor—such as a hospital, insurer, or government agency—the right to claim part of your settlement before you receive net proceeds. Common liens include:
1. Hospital and Medical Provider Liens
Under the Utah Hospital Lien Act (Utah Code § 38-12-1 et seq.), hospitals and inpatient facilities can file a lien on a tort claim for services rendered. They must record the lien with the county recorder. See Title 38, Chapter 12: 38-12.
2. Medicaid and Medical Assistance Liens
If Medicaid pays for your medical care, Utah Code § 26-18-5 grants the Division of Medicaid a right of subrogation against third-party recoveries. Medicaid must be reimbursed before you keep your settlement. See Title 26, Chapter 18: 26-18.
3. Health Insurance Subrogation Claims
Private health insurers often reserve subrogation rights in their policies or under ERISA. They may demand reimbursement for benefits paid. You must address these claims before distributing funds.
4. Workers’ Compensation Liens
If you received workers’ compensation benefits for a workplace injury, the carrier may assert a lien under Utah Code § 34A-2-601 et seq. You must repay the compensation carrier from your third-party recovery. See Title 34A, Chapter 2: 34A-2.
5. Child Support Liens
The Utah Division of Child and Family Services can place a lien on your tort settlement to collect past-due child support. See Utah Code § 62A-11-315: 62A-11.
6. Attorney Charging Liens
Your attorney may assert a charging lien on your recovery to secure unpaid fees and costs. Under Utah Code § 38-7-1 et seq., the attorney’s lien attaches automatically when the claim arises. See Title 38, Chapter 7: 38-7.
7. Federal and State Tax Liens
The IRS can levy a federal tax lien on your settlement if you owe back taxes. See 26 U.S.C. § 6321: 26 U.S.C. § 6321. Utah’s Tax Commission can assert a lien under Utah Code Title 59.
Helpful Hints
- Identify all potential lienholders early in your claim.
- Obtain lien letters to confirm the amounts owed.
- Negotiate with lienholders to reduce or waive debts.
- Include lien obligations in your settlement demands.
- Ensure your attorney disburses funds in the correct order.
- Keep detailed records and watch filing deadlines.
- Consult a Utah-licensed attorney for personalized advice.