What is the statue of limitation a medical lien in the state of California?

Bankruptcy 4 views 2 answers
I was involve in a auto accident in June 2006. I have a medical lien for a Chiropractic bill. My case was settle in 2007. The attorney was suppose to release the settlement to the doctor. I just received a medical bill stating I'm responsible for the medical bill since my attorney fail to pay the doctor. This is the first time I was contacted and informed that I have a balance outstanding from the doctor office. The doctor office stated if I failed to pay i will be sent to collection. Please advise what my legal action are? Does the statue of limitation 4 years apply? Also can i be sent to collection? Thank you

Attorney Answers

2
Robert Stempler ·
A lien is valid only so long as the underlying debt may be enforced. There are minor exceptions, such as tax liens. If the debt is something that you agreed in writing to pay in California, then the California statute of limitations is four years from the date that you breached your promise to repay. A typical debt is paid monthly and breached when the debtor stops paying the monthly payment. However, in your case, it is difficult to know when you breach your promise to pay the debt, as it is unclear when your payments should have started, since the medical provider was waiting for payment, following settlement or payment from your personal injury lawsuit. If the physician was not aware of the settlement, then the office would not know of the breach, unless your attorney notified them. The debt can be referred to a debt collection agency, but it is up to them to evaluate the claim carefully to determine if they can sue you for the debt. You should immediately contact your injury attorney to determine an appropriate resolution and to verify whether or not the medical bill was paid (as perhaps the medical office did not properly credit your account). Robert Stempler (please see DISCLAIMER below) www.StopCollectionLawsuits.com
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Tony Carballo ·
The type of lien you mention is by agreement or a "contractual lien". This means you need to read it to see what it says because whatever it says then thse are the terms only. Many specifically say you are holding the settlement money in trust for the doctor if you don't pay when the settlement is done. Therefore there is no limitation as to when you can be sued. In fact, a lien is a secured debt and technically it means the money you got in the settlement as compensation for medical treatment cost belongs to the doctor. Therefore, the suit against you would be to enforce the lien and not for breach of contract. That s why the four year statute f limitations applicable to written contracts does not apply to liens. Some lien agreements also say that you agree to waive the statute of limitations as to the bill because the doctor intends to collect whether or not you get compensation in the personal injury claim or lawsuit from the insurance company. If your lawyer signed the lien he or she could be liable to your doctor because the lawyer had to hold the funds subject to the lien in his trust account until you agree to release the money to the doctor or the doctor obtains a court order that the funds be paid by the lawyer to the doctor.
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