What is a Lien?
In personal injury cases, a lien is a right of a creditor to get paid from a personal injury settlement. A lien allows the injured party to not have to worry about paying their medical bills until the case has settled. Once the personal injury case has been settled, the creditor will be paid from the personal injury settlement. In order for a lien to be valid, the creditor (called the lienholder) must notify both the injured person and the at-fault person (call the tortfeasor) of the lien. The lien must contain the name and address of the injured person, the date of injury, the name and address of the lienholder, and the name of the tortfeasor. 770 ILCS 23/10(b).
There are several types of liens that can be placed against a personal injury claim. The first type of lien is a healthcare lien, governed by the Health Care Services Act. 770 ILCS 23/1. Under the Act, a hospital, doctor, or physical therapist that has provided services to the injured person may place a lien against that person’s personal injury claim. For more information on how healthcare liens work, see our previous blog HERE. Continue reading