Legal Question in Legal Ethics in Oregon
liens vs liens
I was involved in a auto accident in late 2005. I was left unable to work and lost my business. when I closed the company I returned all of the equipment and was sued for the balances. I settled my injury lawsuit a couple of weeks ago and while waiting for my attorney to issue me a check he was served with garnishment papers. my question is I had liens for doctors bills and liens to a person that loaned me money to live on and to pay medical bills. my attorney is now telling me that he gets his money and the doctors liens get paid. But the other liens that I promised would be paid out of the settlement are not valid. is one lien more important than another lien?
2 Answers from Attorneys
Re: liens vs liens
Yes. It is complicated but they are ranked in terms of priority.
Re: liens vs liens
Unfortunately, yes.
Your liens are payable out of your portion of the lawsuit proceeds. That means your attorney gets paid, the costs of the lawsuit get paid, and the priority of the bills that are paid are determined by a race to the courthouse. The rules change slightly, if you file bankruptcy, so definitely consult an attorney as to your rights. You might be able to get some order put into the feeding frenzy.
Also, you may be able to challenge the garnishment, so find out how to do this and whether it si possible.
If you need money to live on, you might be able to have the court change the amount you have to pay.
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