Medical liens are a powerful tool for medical providers to collect on unpaid bills. In California, the statute of limitations for medical liens is usually four years after the debtor fails to keep their agreement to pay. This means that if the debtor does not pay their bill by the end of the four-year period, the medical provider can no longer file a lien against the debtor’s property.
However, many lien agreements state that if the debtor does not pay, the debtor must hold any settlement money in trust for the medical provider. This means that if the debtor receives a settlement from a third party, such as an insurance company, the debtor must hold the settlement money in trust for the medical provider until the debt is paid. In this case, the lien is still in effect and the medical provider can still collect on the debt.
It is important to note that the four-year statute of limitations does not apply to liens that are filed against the debtor’s property. If a lien is filed against the debtor’s property, the lien will remain in effect until the debt is paid or the lien is released.
If you are considering filing a medical lien in California, it is important to understand the statute of limitations and how it applies to your situation. Knowing the statute of limitations can help you determine the best course of action for collecting on unpaid medical bills.
It is also important to note that the statute of limitations for medical liens in California can vary depending on the type of lien. For example, some liens have a two-year statute of limitations, while others have a four-year statute of limitations. It is important to check with a qualified attorney to determine the statute of limitations for your particular situation.
The statute of limitations for medical liens in California is four years from the date the debtor fails to keep their agreement to pay. This means that if the debtor does not pay their bill by Jun 1, 2022, the medical provider can no longer file a lien against the debtor’s property. It is important to understand the statute of limitations and how it applies to your situation in order to ensure that you are able to collect on unpaid medical bills.
