The financial toll taken by a car or truck accident can be devastating. Your medical needs are likely to exceed your insurance policy limits, and your inability to work can leave your household with an income shortage.
If you find yourself dealing with those problems now, then you’re probably reading this blog wondering what you can do to protect your financial interests.
In the long-term, aggressively pursuing a personal injury claim is probably your best route, as your ultimate recovery can help cover your medical expenses, lost wages, and your noneconomic losses such as pain and suffering and loss of enjoyment of life. But we know that you have more immediate needs.
How do you cover your short-term needs?
Personal injury lawsuits can take a while to play out. In the meantime, your hospital bills are going to be coming due and you’ll have to find a way to pay your rent or mortgage, your utilities, and your grocery bill.
Although that can be incredibly stressful to think about, there are things that you can do to try to offset your immediate financial needs, including each of the following:
- Talk to your medical provider: Sure, doctors and hospitals want to be paid as quickly as possible, but they also understand that you’re facing economic hardship and that you may have money coming in to help you pay your bills. As such, these providers may be willing to enter into an agreement with you whereby they hold off on collection practices so long as you agree to immediately pay them once your lawsuit resolves. This agreement is usually commemorated in writing, known as a hospital lien.
- Reach out to your support network: It can be hard to ask for help, but if you’re truly struggling, then you might want to see if your family and friends can give you a helping hand. If that makes you feel uneasy, then you might want to consider writing out repayment terms so that it’s clear what everyone’s expectations are and the borrowing process seems more formalized. This might help you avoid feeling like you’re asking for a handout, which you absolutely are not doing.
- Consider a lawsuit loan: Even if you seek out a hospital lien and obtain assistance from your loved ones, you can still end up short on covering your living expenses. This is where a lawsuit loan may be beneficial. Here, you use your personal injury claim as collateral to take out a loan, which can help bridge the gap until your case resolves. Just be mindful that these loans have interest rates that can be rather high, and you’ll have to pay it back regardless of how your claim pans out.
- Recreate your budget: As you focus on your recovery, you might find it beneficial to rework your budget. By doing so, you might be able to reduce costs just enough to give yourself a little bit of relief.
Know your options while your lawsuit is pending
In the aftermath of your accident, you certainly need to focus on building an aggressive personal injury case. But you also need to focus on meeting your immediate needs. As stressful as that can be, there are options out there to help provide you with the financial stability that you require.