What is a lien in a personal injury case?

Understanding Liens in Colorado Personal Injury Cases

If you’re involved in a personal injury claim, you may have heard the term “lien” used. But what is it? Colorado personal injury lawyer Sean Olson explains:

A lien in a personal injury case is essentially money owed to someone else. It often comes up in the case of healthcare that you’ve been provided as a result of injuries that you’ve suffered. In those situations, an insurance company might pay for your healthcare along the way, but if your case is ultimately resolved and you receive money as a result of those injuries, your insurance company is going to want the money that they put into your healthcare back so when you receive a settlement, when you receive a judgment, your insurer is going to be entitled to a portion of that money to recoup its own costs.

If you’ve heard that there’s a lien on your personal injury case, it’s important to talk to an experienced personal injury attorney who knows how liens work. An experienced attorney might be able to reduce that amount or eliminate it entirely from any settlement or judgment you might ultimately receive. It all depends on the facts of your particular case.