Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When you resolve a personal injury claim through a settlement or judgment in New Jersey, various parties may assert a legal lien on the recovery. A lien gives a creditor the right to be paid from the settlement before you receive your net award. Common liens include:
1. Health Care Provider Liens
Under N.J.S.A. 2A:53A-7, doctors, hospitals, and other medical providers who treat you for injuries can file a lien against your personal injury settlement for charges related to that injury. To preserve this lien, the provider must file a written notice in the county where the lawsuit is pending within 90 days of your last treatment. See N.J.S.A. 2A:53A-7.
2. Health Insurer Subrogation
If a private health insurer or workers’ compensation carrier paid medical bills on your behalf, it may assert a subrogation lien seeking reimbursement from your settlement. New Jersey courts enforce these rights under N.J.S.A. 26:2S-7. See N.J.S.A. 26:2S-7.
3. Medicaid or NJ FamilyCare Liens
If the New Jersey Medicaid program (NJ FamilyCare) covers your care, it can assert a lien to recover its costs from your settlement. Providers and the State must comply with federal and state regulations to perfect this lien. See N.J.A.C. 10:71-4.1 et seq.
4. Attorney Charging Lien
Under New Jersey Court Rule 1:21-6, your attorney has a charging lien on any judgment or settlement for fees and expenses. This lien attaches automatically once the claim arises, ensuring the lawyer gets paid before you receive funds.
5. Child Support and Government Liens
State Child Support Enforcement can file liens for overdue support. The IRS and state tax authorities may also place liens for unpaid taxes. These liens attach to any money you recover in a personal injury settlement or judgment.
Helpful Hints
- Review each lien carefully to confirm the amount owed.
- Negotiate lien reductions when possible, especially with medical providers.
- Ensure your attorney tracks and resolves subrogation claims early in negotiations.
- File any objections before court deadlines to protect your interests.
- Request an itemized payoff statement for each lien holder.