What is a lien?
A lien is a legal claim attached to a specific piece of property that makes sure someone gets paid; California law calls it a charge on specific property that secures performance of an act. In an injury case, the property is usually your settlement money, and the lien holder is paid before you are.
Last checked November 9, 2026 · Official sources (4)
What does a lien do to an injury settlement? An example
Example: you settle a car crash claim in Arizona for $25,000. Your own car insurer already paid $7,000 of your bills under your medical payments coverage. Arizona lets that insurer have a lien against the amount it paid above $5,000. So its lien can reach $2,000, not the full $7,000. That $2,000 comes out of the $25,000 before the rest is paid out.
Now add a hospital that is owed $4,000 and has its own lien. Out of $25,000, about $6,000 is spoken for before fees. Each lien holder needs to be paid, reduced or released before the money is split.
Why does a lien matter to someone who was hurt?
Liens are the most common reason a settlement check is smaller than the settlement number. They also cause delays, because the insurer paying the claim may wait until known liens are handled. Make a list of everyone who paid for your care or was not paid at all: hospitals, ambulance, health plan, MedPay, Medicaid or Medicare. Ask each one in writing whether it claims a lien and for how much.
Who can put a lien on a settlement? It depends on the state
| State | Example of a lien on injury money |
|---|---|
| Texas | A hospital lien attaches to the proceeds of a settlement of the injured person’s claim. |
| Arizona | A MedPay insurer may have a lien on what it paid above $5,000. |
| Arizona | Provider liens do not reach your health insurance, MedPay, UM or UIM benefits. |
Government programs such as Medicare and Medicaid have their own recovery rules. For the full Texas and Arizona hospital rules, see the medical lien entry.
Lien vs. subrogation vs. levy
A lien is the claim attached to the money. Subrogation is an insurer’s right to step into your place and pursue the person who caused the harm, and it is often enforced through a lien. A levy is different: it is the actual seizure of money or property to pay a debt, usually after a court judgment or a tax debt.
Questions
Can a lien take my whole settlement?
Limits vary by state and by type of lien. Some states cap hospital liens; the medical lien entry shows the Texas and Arizona caps.
Do I have to pay a lien I never agreed to?
Some liens come from a statute, not from your signature. Ask the lien holder which law or contract it relies on.
Is a lien on my car title the same thing?
It is the same idea applied to different property: a lender’s lien on a car secures the car loan, while an injury lien secures payment from your claim.
Find out if you are owed money.
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See if I’m owed moneySources (4)
- Cal. Civ. Code § 2872, checked 2026-11-09. “A lien is a charge imposed in some mode other than by a transfer in trust upon specific property by which it is made security for the performance of an act.”
- Tex. Prop. Code ch. 55, checked 2026-11-09. “(3) the proceeds of a settlement of a cause of action or a claim by the injured individual”
- A.R.S. § 20-259.01, checked 2026-11-09. “may have a lien against any amount in excess of $5,000 that is paid to or on behalf of that insured under the medical payments coverage of the policy for that accident.”
- A.R.S. § 33-931, checked 2026-11-09. “except health insurance and medical payments coverage and underinsured motorist and uninsured motorist coverage as defined in section 20-259.01”