Lien on Me: What’s a “lien” anyway?
Let’s start with a definition:
Lien: a right to keep possession of property belonging to another person until a debt owed by that person is discharged.
Notice that it’s a “right.” It’s not a document. It’s not a thing you sign. It’s a right, which has to therefore be enshrined in a statute.
This comes up a lot when health care providers are getting ancy about getting their bills paid after an auto accident. Sometimes the staff will say, “HE SIGNED A LIEN!” To which I have to respond, with the above definition and explanation. A lien is a right, it’s not a document.
Of course, while it is NOT a document, it is still a thing, but how does this thing exist? More importantly, when does it exist? In this context, the statutes that gives this right are North Carolina General Statutes §§ 44-49 and 44-50. But it doesn’t just exist because the provider wants it to; they have to jump through some hoops to “perfect” the lien.
First, the provider has to provide records AND bills FREE OF CHARGE when requested by the patient. Second, they have to assert the lien; that’s as simple as stamping the word “lien” on the paperwork they send free of charge. But they do have to do BOTH of those things to have a lien.
Remember that. There is no lien just because the provider wills it. The provider HAS to do BOTH of those things above for their to be a valid lien on your injury settlement.
Of course, mechanics liens and the like are different, but they are also created by statute and have hoops! They don’t just exist! They can’t bill summoned into being at will.
As with many things personal injury, this can be complicated and frustrating, which is all the more reason to consult an attorney. Call me at 919-929-2992.
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