Asked in Contracts and Car Accidents for Tennessee

Q: I agreed to a payoff with my lien holder through a signed contract. Now that my insurance is paying it off they said

the contract is null/void because my insurance is paying it out. Is that legal if my settlement amount is less? Can the lien holder disregard that contract

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1 Lawyer Answer
Tim Akpinar
Tim Akpinar
  • Personal Injury Lawyer
  • Little Neck, NY

A: A Tennessee attorney could advise best, but your question remains open for two weeks. This requires closer examination than is possible in the limited scope here. It could depend on the type of lien and other possible factors. There are certain liens, such as public health liens, that are subject to reduction by operation of law to prevent the very situation you describe - the lien overshadowing the award. If you were represented by an attorney in this matter, you should sit down with them to go through the terms of the lien agreement in detail. If you handled your case on your own, then consider trying to arrange a brief consult with a Tennessee attorney to review the lien agreement and related communications between the lienholder, insurance carrier, yourself, and your attorney (if one was involved). Good luck

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