Being the victim of an accident is an extremely stressful experience. Not only do you have to deal with the physical aspects of the injury, but also the emotional and psychological repercussions such an event can have on your life.
That stress can then be doubled when you realize that you will not be able to work due to your injury, but you still have to pay your bills. These include all your regular bills such as your rent or mortgage, car payments, utilities and your cell phone.
And not just your normal bills, because you will also have the additional financial burden of medical expenses, including the cost of frequent doctor visits which can quickly add up, even if their co-pay visits.
Lawsuits of any kind can take several months or years to resolve, and this includes personal injury cases, so that’s more than enough time for your bills to start piling up.
Does Your Insurance Cover It?
Good healthcare insurance can take the sting out of your medical bills, but it is rarely enough to cover all of your additional living expenses incurred as a result of your accident.
If you don’t have health insurance the only real option available to you is the have those bills paid when your case is settled, but be sure to keep a detailed record of every single medical expense or bill you have to pay.
The very last thing you want to have to deal with is collection agencies while you’re still trying to recover from your injury.
So, what options are available to you in situations while your case is pending but you still need to pay your bills?
Medical Lien
This is an arrangement between your attorney and your doctor that basically allows you to receive all the medical treatment you need, but without having to pay for those treatments right at that point in time.
Then when your case is resolved, a portion of the financial compensation you receive can be used to pay your outstanding medical bills. So, what a lien does is basically delay the payment of your bills until you can afford to pay them at a later date.
In situations where your healthcare insurance doesn’t cover every single treatment you need, you can also use a lien to pay for those treatments which are not part of your health coverage. Some people are tempted to discontinue medical treatment rather than rely on a medical lien, but without realizing that discontinuing their treatment could lead the court to believe that they are not as seriously injured as they claim to be.
Please always consult your attorney before making any major decisions about discontinuing treatment while you\’re in the middle of a personal injury claim.
Pre-settlement Funding
Also known as lawsuit funding, this means that you can sometimes be paid in advance of your lawsuit being settled. Although this is not an ideal situation to find yourself in, it can be very useful if you find yourself struggling to maintain an acceptable standard of living while you are unable to work.
Your pre-settlement funding will come through a finance company, and can be made available to you in as little as 24 hours. One note of warning is that the interest rates charged on this type of funding are usually higher than most bank or credit union loans.
Can anyone get pre-settlement funding?
Once the financing company gathers together all necessary information on your case they can then make a judgment as to the potential successful outcome of your lawsuit. Obviously they can only arrange to provide you with an advance on your compensation if you are likely to win your case.
So, you have multiple options available to you if you find yourself struggling financially while your case is still pending.
But please always seek professional legal advice before entering into any type of binding financial contract.