[CLBS] [CLBS} Medical Lien question

[Kirk Cheney]

Matt,

I think section 545 governs, and it identifies only four categories of statutory liens that may be avoided: (1) liens triggered by the debtor's financial distress; (2) liens that are unperfected against a bona fide purchaser; (3) liens for rent; and (4) liens for distress of rent.  Collier section is attached.

Kirk


Kirk S. Cheney
Attorney

Holland & Hart LLP
800 W. Main St., Suite 1750
Boise, ID  83702-7714
Phone (208) 342-5000
E-mail: kscheney at hollandhart.com

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From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Matthew T. Christensen
Sent: Friday, February 26, 2016 12:16 PM
To: CLBS at admws.idaho.gov
Subject: [CLBS] [CLBS} Medical Lien question

Folks,

Scenario: Client has previous personal injury accident. Existing unresolved personal injury claim (policy limits = $100k). $600k in medical bills; hospital has a medical lien on the insurance claim (assume properly pursued/perfected). Brain damage as a result of the accident = good case for "to the extent necessary for support" exemption claim for PI proceeds.

Question/Problem: What to do (if anything) about the medical lien. Can it be avoided (similar to a judgment lien on a house)? Or is the Debtor stuck with it, and all PI proceeds just go to the medical folks?

I can (and probably will) research this - but figured I'd see if there was any collective wisdom first.

MTC


Matthew T. Christensen
Attorney and Counselor at Law

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