Can a Judge Put a Lien on an Automobile Settlement to Pay for an Auto Accident?
- Some states allow automatic liens for hospital expenses relating to an automobile accident. These hospital liens ensure payment to the hospital for medical care rendered after an automobile accident or other incident resulting in personal injury. Depending on the state statute, the lien holder may be named as a payee on the settlement check from the automobile insurance company or other party making the settlement. Other states, uphold that a hospital lien attaches at the time the patient is admitted for treatment.
- A health insurance company may also have the right to take an automobile settlement as reimbursement for the money it paid for medical care after an auto accident. Health insurance policies that include a subrogation clause allow an insurance company to ask a judge to award part or all of the automobile settlement to cover any costs incurred as a result of the auto accident. A subrogation clause ensures that the injured party does not have his medical bills paid twice, once by the health insurance company and once as part of the automobile settlement.
- Creditors with a civil money judgment relating to an auto accident or any other debt can potentially ask a judge to put a lien on the automobile settlement, lottery winnings or other structured payments to satisfy the judgment. Depending on state laws, a creditor with a judgment may only need to file a paper with the clerk of court in order to obtain a garnishment order or to attach a lien. The judgment creditor must have all of the pertinent information related to the settlement, or other payment, in order to attach a lien or file a garnishment.
- An injured party in an auto accident can ask a judge to put a lien on the automobile settlement awarded to another party in the accident. The injured party must file a lawsuit against the other party in the accident, then ask for a settlement lien if the judgment is awarded.