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When you reach a personal injury settlement in North Dakota, various liens may reduce your net recovery. Liens are legal claims creditors assert to recover medical bills, insurance payouts, taxes, or other debts from your award. Understanding common liens helps you plan negotiations and budget for attorney fees, medical costs, and reimbursements.

1. Medical Provider Liens

North Dakota law grants hospitals and related providers a lien on personal injury settlements to cover unpaid treatment bills.

• Hospital Liens: Under N.D.C.C. § 23-22.1, licensed hospitals file a lien within 90 days after patient discharge. The lien attaches to any claim you have against a third party for injuries covered by treatment. It secures payment for services rendered.
• Physician and Provider Liens: While the statute specifically addresses hospitals, physicians, chiropractors, and other providers often assert liens by contract or under common law. They must give notice in writing to the injured party and the third-party insurer before the claim is settled.

2. Health Insurer Subrogation Liens

Insurers that paid your medical expenses may seek repayment from your settlement under subrogation clauses in your policy or under federal law (e.g., ERISA for employer-sponsored plans). State courts in North Dakota generally enforce valid plan subrogation rights. Review your insurance contracts for subrogation and reimbursement language.

3. Workers’ Compensation Liens

If you received workers’ compensation benefits for an injury, the insurer holds a subrogation lien on any third-party recovery. Under N.D.C.C. § 65-05-10, the insurer can recoup benefits paid when another party is liable. They must be repaid before you keep your award.

4. Medicaid and Medicare Estate Recovery

Medicaid covers medical bills for eligible recipients and later seeks reimbursement from settlements through estate recovery. North Dakota law authorizes the Department of Human Services to file a lien or claim against your judgment or settlement to recover medical assistance paid. See N.D.C.C. § 50-24.3-04.

5. Attorney’s Charging Lien

North Dakota recognizes an attorney’s common-law charging lien on a client’s judgment or settlement to secure unpaid fees and costs. The lien attaches when you file suit or when the attorney provides services under a contingency fee agreement. The attorney must file notice in the court to perfect the lien.

6. Government and Judgment Liens

Other potential liens include:

• Child Support Liens: The state can intercept portions of your award to satisfy past-due child support under North Dakota Century Code.
• Federal Tax Liens: The IRS may file a lien on any property, including settlements, for unpaid federal taxes.
• Civil Judgment Liens: Creditors who obtained valid judgments can record liens against your assets, potentially affecting settlement proceeds.

Helpful Hints

• Request lien statements from each claimant and verify balances.
• Negotiate lien reductions—many providers accept lower pay-outs.
• Ensure timely notice to all lienholders before accepting a settlement.
• Consult with your attorney about allocating settlement funds among liens, costs, and net recovery.
• Retain documentation of all medical bills and insurance payments.