How to Track and Manage Liens on a Matter
Use the Liens tab on contingent fee matters to record, track, and manage third-party liens throughout the case lifecycle.
What is the Liens Tab?
The Liens tab is a dedicated section on each contingent fee matter where you can record and manage all third-party liens — medical providers, insurance subrogation claims, government obligations (Medicare/Medicaid), and letters of protection.
Liens recorded here feed directly into the Settlement Calculator (Step 4: Review Liens) and appear on the Settlement Statement.
Who Should Use It
- Paralegals — Record liens as they come in, track negotiation progress
- Billing Administrators — Verify lien amounts before settlement, manage payments
- Managing Partners / Attorneys — Review lien totals before authorizing disbursement
Adding a Lien
Each lien record includes:
| Field | Required | Description |
|---|---|---|
| Payee | Yes | Select an existing QuickBooks Online vendor, or create a new one inline (same vendor picker used on the Fee Recipients tab) |
| Lien Type | Yes | Medical Provider, Insurance Subrogation, Government/Medicare, Letter of Protection, Attorney Lien, or Other |
| Original Amount | Yes | The amount initially asserted |
| Negotiated Amount | No | Current/negotiated amount (if different from original) |
| Description | No | Brief description of the lien |
| Status | Yes | Pending, Negotiating, Finalized, or Paid |
| Service Start Date | No | Start of the service period the lien covers |
| Service End Date | No | End of the service period the lien covers |
| Recorded / Filing Date | No | Date the lien was recorded or filed |
| County / Jurisdiction | No | Optional free-text field |
Lien Statuses
| Status | Meaning |
|---|---|
| Pending | Lien received but not yet reviewed or contested |
| Negotiating | Actively negotiating a reduction with the lienholder |
| Finalized | Final amount agreed upon — ready for settlement |
| Paid | Check has been issued to the lienholder |
How Liens Connect to the Settlement Statement
When you reach Step 4 (Review Liens) in the Settlement Wizard, lien data from the Liens tab is displayed for your review. Only liens with a Finalized or Paid status are included on the settlement statement, where the total lien amount is deducted from the client’s net proceeds.
Key advantage: Record liens during the case — not at the last minute before settlement. This ensures your settlement statement reflects verified amounts.
Paying a Lien
Once a lien’s status is Finalized, pay it from the Settlement Disbursements table alongside the attorney fee and the client’s net check — see Settlement Disbursements for the trust-balance protection, editing, and undo rules that apply to every row in that table, including liens.