Protecting Yourself from Financial Problems During a Personal Injury Case
Personal injury cases are, by nature, highly complex matters. Some can take time to complete. If you are unable to work because of your injury, have medical bills, intensive therapy, or other financial losses, you and your family could be at risk for financial problems. This may be true, even if you are normally prudent with your monthly bills and finances. Reduce your risk of financial problems during a personal injury case by knowing how to protect yourself and your family.
Downsize as Much as Reasonably Possible
After an accident, you and your family may be living on less money each month. This may be true, even if you are able to pursue temporary disability, permanent disability, or workers’ compensation since these options only cover a portion of your previous income. Protect your family by downsizing as much as reasonably possible. Cut out luxury expenses, like entertainment packages (cable, country club memberships, etc.) and subscriptions services (magazines, music, etc.). The cancellation fees may seem like a deterrent, but often the fee for cancelling is still less than what you would pay in the long-term. Additionally, some contracts may have clauses that could help you avoid paying the cancellation fee.
Negotiate with Creditors
While not all creditors will work with you, some of them will. There are even credit cards that offer monthly protection for those that are injured or become severely ill and are unable to work (you may have signed up for this when you obtained your card). Whatever you work out as far as agreements, it could help reduce your monthly expenses, at least hopefully long enough that you can pay off any past due balances and interest fees, should you be successful in your pursuit for compensation.
Avoid “Fast Cash” Options if You Can
Ideally, you would have an emergency fund savings that you and your family could use to survive for a few months (potentially longer if you downsize and cut out excess). If you do not have this, then you might be considering the idea of cashing out a retirement account or taking out a “personal injury lawsuit loan.” If at all possible, try to avoid these options. Though your retirement account is essentially “yours,” by withdrawing early, you could face tax penalties, and it may not leave you with anything in your account. The second option – lawsuit loans – have extremely high interest rates.
Get Experienced Legal Assistance with Your Case
If you or someone you love has been injured in an accident, turn to Herrling Clark Law Firm, Ltd., where your best interest is made the priority. We will fight to get you and your family the maximum compensation you deserve in the most reasonable amount of time possible. Schedule your consultation with our Green Bay personal injury attorneys to learn more. Call 920-739-7366 today.