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Debunking the Myth About “Fast” Lien Resolution

By Amanda Greenburg



The Myth of Quick Lien Resolution

The myth that personal injury liens are resolved quickly is prevalent but often does not align with reality. Here are some key points to debunk this misconception:



1. Resolving Liens is a Complicated Process

Personal injury liens typically arise when a person receives treatment for injuries and an insurance company, government program (like Medicaid or Medicare), or other third party pays for some or all of that treatment.

When an injured party settles their case, these liens must be negotiated, which is not always a quick process. Each lienholder may have different requirements for resolving the lien, and negotiating reductions or agreements can take time, especially if the lienholder is unwilling to compromise.



2. Obtaining the Lien from the Lienholder May Take Some Time

Lienholders, such as insurance companies or government programs, often have complex procedures to obtain the lien, which can slow the settlement distribution process.

For example, government entities like Medicaid or Medicare may need time to gather the lien amounts. They often have strict rules regarding how much of the settlement they are entitled to. Additionally, many internal approvals may be needed before a personal injury lien can be finalized.



3. Potential Disputes Over Lien Amounts

The amount of the lien is often disputed. Charges unrelated to the incident may need to be removed to ensure the lien amount is accurate.

The injured party and their attorney may also believe the lien amount is too high. Negotiating it down can involve substantial back-and-forth, including submitting supporting documentation and making legal arguments. These disputes can extend the time required for resolution.



4. State-Specific Regulations

Different states have varying laws governing how liens are handled, which can further complicate and lengthen the resolution process.



5. Delayed Payments and Processing

Even when a settlement has been agreed upon and lien amounts negotiated, distributing the settlement funds and paying off liens can take time. This may be due to delays in processing paperwork, waiting for checks to be issued, or delays in the transfer of funds between parties.



6. The Need to Hire a Lien Resolution Expert

Resolving liens may require expertise, particularly in negotiating with insurers and government programs and understanding the priority of different types of liens.

While the lien resolution expert may be more familiar with the processes, obtaining the most favorable outcome for the plaintiff will still take time.



7. The Myth of "Quick" Resolution

Due to the lengthy and complex nature of lien resolution, the process may take some time. While some smaller liens or straightforward cases may be resolved faster, larger cases involving multiple lienholders or complex negotiations can take longer to fully settle.

It is important to start the process as early as possible and to reasonably set the plaintiff’s expectations.



Conclusion

Resolution of a personal injury lien often takes far longer than people assume. It's a multifaceted process with numerous obstacles, including negotiations and legal complexity, that must be navigated to ensure the injured party receives a fair settlement.

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