LIENS, LAWSUITS, AND YOUR MONEY — What Injury Victims Need to Know Before Signing a Settlement
Personal injury settlements can offer vital relief after a devastating car accident or medical emergency—but not all that money may end up in your hands
In many cases, medical providers, insurance companies, or government agencies file liens against your settlement, demanding repayment before you ever see a dime.
At R23 Law, our California Consumer Protection Attorneys are here to make sure you're not blindsided by hidden claims on your settlement. Here's what every injury victim in California needs to know about liens—and how we fight to protect your recovery.
What Is a Lien in a Personal Injury Case?
A lien is a legal claim against your injury settlement. When a third party—like your health insurer, hospital, or Medicaid—pays your medical bills, they may file a lien demanding reimbursement from your final settlement or court award.
These liens are enforceable. That means you could be required by law to pay back those amounts before receiving any compensation for pain and suffering, lost wages, or other damages.
Who Can File a Lien Against Your Injury Settlement?
Several parties routinely seek repayment through liens in personal injury cases:
Health Insurance Companies
If your insurer covers the cost of your treatment after an accident, they can file a lien to get reimbursed. Even if your treatment was covered “in-network,” they can still demand money from your personal injury award.
Medicaid and Medicare
If government programs paid for your care, they must be reimbursed from your settlement. Medicaid, in particular, will file a lien to recover expenses if you do not pursue a claim on your own. California has specific statutes governing how and when these liens apply.
Auto Insurance Carriers
If your own car insurance company paid for MedPay coverage (medical expenses after a crash), they may place a lien for any amount paid over $5,000.
Why Liens Can Significantly Reduce Your Take-Home Recovery
You might assume that a $100,000 settlement means you’ll pocket most of it. But liens can quickly eat into your compensation.
Let’s say your insurer paid $40,000 in medical bills. That lien could cut your settlement by nearly half—unless your attorney steps in.
That’s where R23 Law’s California Personal Injury Attorneys come in. We fight to:
Negotiate lien reductions
Ensure lien amounts are accurate
Challenge improper or inflated charges
Help you retain more of your rightful compensation
Can You Dispute a Lien? Yes—and You Should.
Under California law, you have the right to contest liens you believe are invalid or inflated. Disputes often arise when:
Medical providers charge more than necessary
Insurers fail to apply negotiated discounts
Lienholders try to claim costs outside of treatment scope
At R23 Law, we investigate each lien line-by-line. If something doesn’t add up, we fight to have it reduced or dismissed.
How to Protect Yourself from Surprise Liens
Even if you’re still recovering, planning ahead can save you thousands later. Here’s what you should do:
Hire an Attorney Immediately
Your lawyer can notify potential lienholders early and begin negotiating before your case is even settled.
Don’t Ignore Medical Bills
Unpaid bills can turn into liens. If you’re having trouble paying, tell your attorney. We often work with providers to hold off collections during litigation.
Ask for a Lien Audit
Before accepting a settlement, request a full breakdown of every lien on your case. R23 Law’s team audits all liens before finalizing your award.
R23 Law: California Injury Victim Advocates You Can Trust
Liens don’t have to take over your settlement. At R23 Law, we understand how these hidden claims work—and how to push back.
When you work with our R23 Law California Consumer Protection Attorneys, you’re getting a team that’s:
Skilled in negotiating lien reductions
Relentless with insurance companies
Focused on maximizing your take-home compensation
📞 Ready to Settle Smart?
Whether you're just starting your claim or reviewing a settlement offer, don't let lienholders walk away with your money. R23 Law will review your case, negotiate aggressively, and protect your financial recovery.
Contact R23 Law today for a free consultation with our R23 Law California Personal Injury and Consumer Protection Attorneys.
