An injury that occurs through no fault of your own can put an unexpected stress on your family finances. This is especially true if you don't have a lot of financial resources available to you. The following guide can help you manage money with as little stress as possible while you heal and pursue the settlement from the responsible party.
Choose legal representation wisely
When it comes to personal injury cases, you want a lawyer that accepts payment on contingency. In this scenario, the lawyer is only paid if they win your case. Then, they are paid a percentage of your settlement. Not only does this encourage the lawyer to fight hard for you, it also ensures they will work for the largest settlement possible. Just make sure to agree on a percentage beforehand, so you know what to expect.
Avoid paying when possible
Many of your bills will be medical in nature. In some cases, your insurance will pick up the tab, at least temporarily until your case is settled. If you don't have sufficient insurance, then you may end up being billed by the medical provider. Meet with the financial office for the hospital or clinic and explain your situation. Many, if not most, will set up a delayed payment plan. This gives you time to settle your case before any payments are actually due.
Keep receipts
You won't be able to delay payment for everything. Some medical devices, medications, and fees need to be paid at the time of service. When paying out of pocket, keep all receipts to prove the expense. Make copies and give the copies to your lawyer so they can use all of this information when drafting the settlement amount.
Set up credit lines
If you will need temporary credit to pay some expenses, such as day to day living expenses until you can return to work, then you need to act before the loss of income shows on your credit reports. Opt for the lowest interest option, whether it is a home equity line of credit, second mortgage, or a credit card. Only use it for absolute necessities and maintain a budget that allows you to make minimum payments so you don't amass fees. Much like medical expenses, keep records of your pay loss and any interest you accrue due to the loss of income so these amounts can be included in your settlement.
For more help, work with your auto accident lawyer.
