Disclaimer
This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific circumstances.
Detailed Answer
When you resolve a personal injury claim in West Virginia, various entities may assert liens against your settlement proceeds. A lien gives a creditor a legal claim on funds you recover to satisfy outstanding debts or expenses. Understanding these common liens helps you plan for how much you actually receive.
1. Hospital and Medical Provider Liens
Under West Virginia law, hospitals and certain medical providers can file liens to secure payment for services they provided to an injured person. For example, a hospital that treated you for an accident-related injury can record a lien against any settlement or judgment. See W. Va. Code § 38-9-4 (hospital lien for negligence cases).
2. Attorney’s Charging Lien
Your personal injury attorney may assert a charging lien on your settlement under W. Va. Code § 38-9-2. This lien secures the lawyer’s fees and costs you agreed to pay. It attaches to the client’s cause of action or recovery.
3. Subrogation and Insurance Liens
If you received payment from a health insurer, workers’ compensation carrier, or auto insurer, those carriers often have subrogation rights. They can demand reimbursement from your settlement. For workers’ comp, see W. Va. Code § 23-2-12 (employer/carrier subrogation).
4. Medicare and Medicaid Liens
The federal Medicare Secondary Payer Act (42 U.S.C. § 1395y(b)(2)) requires Medicare to be reimbursed from any settlement that covers medical expenses. West Virginia Medicaid similarly seeks recoupment under W. Va. Code § 9-5-4.
5. Child Support and Spousal Support Liens
If you owe past-due child support or alimony, the West Virginia Bureau for Child Support Enforcement can place a lien on your settlement. See W. Va. Code § 48-23-100 (lien for delinquent support).
6. Tax Liens
Federal and state tax authorities can levy liens on your assets, including lawsuit proceeds, for unpaid taxes. The IRS files a Notice of Federal Tax Lien under 26 U.S.C. § 6323; the West Virginia State Tax Department can file under W. Va. Code § 11-3-30.
7. Uniform Commercial Code (UCC) Liens
Creditors holding security interests under the West Virginia Uniform Commercial Code may file UCC-1 financing statements to claim proceeds of your settlement. See W. Va. Code § 46A-9A-501 (rights on collateral).
Helpful Hints
- Obtain a lien letter: Ask each creditor to provide a written statement of the amount due and release terms.
- Verify priority: Determine which liens take priority under West Virginia law to avoid surprises.
- Negotiate payoffs: In many cases, you can negotiate lien amounts down in exchange for prompt payment.
- Keep clear records: Track all lien communications, payoff statements, and release forms in one file.
- Confirm releases: Before disbursing funds, ensure each lienholder files a satisfaction or release of lien.
- Consult counsel: An attorney familiar with West Virginia personal injury and lien law can protect your net recovery.