After you are hurt in an accident, you immediately begin to deal with the consequences. Your most pressing concerns are your physical and mental wellbeing. You may need to work with a variety of physicians to receive appropriate medical care and recover as much as possible. During this time, you also may not be able to go to work. If you are lucky, your employer handles things without you, keeping your spot open.
Unfortunately, for many employees in the U.S., the truth is that you are forced to quit, or your spot is filled while you are away. Extra bills without your regular income create an avalanche effect, and within a few months, you may be behind on many of your bills and loans. In addition to needing help with your personal injury claim, you may need help paying loans after a serious injury. If this applies to you, be sure to contact an experienced Ohio debt relief attorney at Cleveland Bankruptcy Attorneys at (216) 586-6600 to discuss your options during a free legal consultation.
Common Financial Issues After an Accident
Suffering a significant injury in an accident automatically means medical bills. From the first ambulance ride and emergency room visit to the final physical therapy visits, you may accumulate hundreds of thousands of dollars in medical bills. Much of this will depend on your health care coverage, your specific type of injury, and the treatments you require to recover. Nonetheless, no matter the nature of your injury, any serious harm is going to result in medical debt.
While you watch the medical bills come in, and you try to live without your regular paychecks, you are likely to fall behind on your mortgage or rent and utilities. This quickly puts your living situation in jeopardy. If you do not own your car outright, you may have trouble paying your auto loan and insurance. Any credit card debt you had before the accident is far from being paid off, and you are likely accumulating more credit card debt now. If you or your spouse took out student loans, these are other financial obligations you may fall behind on. All of the bills you pay each month may suddenly become late notices and calls from collections agencies.
Instead of trying to handle the financial aftermath of a serious injury alone, call Cleveland Bankruptcy Attorneys. Our team has numerous years of experience handling these types of situations, and we can explain your debt relief options.
Your Financial Options When Suffering From a Serious Injury
If you are dealing with a difficult financial situation after suffering a serious injury and need help paying your loans, speak with an attorney about your options. There are ways to control your debt during this time, such as through:
- Contingency Medical Payments – You should ask a lawyer about contingency-based medical bills. Your attorney may be able to reach an agreement with your medical providers to not bill you – or not send your unpaid bill to collections – until you have settled with the at-fault party or their insurer. Your attorney will then make sure your settlement covers all of the medical expenses you owe. Once you receive a settlement, your lawyer will immediately compensate your medical providers.
- Loan Deferment – If you have student loan debt, you can work with the debt holder to postpone payments. You can apply for a medical or hardship deferment, which will put your student loan payments on hold for a period such as 12 months. It is essential you do this as soon as possible, preferably before you begin to miss payments since failing to pay your student loan debt can negatively impact your credit score.
- Personal Loans – If you have loans that cannot defer and medical providers who do not accept contingency payments, then you may need to consider a litigation funding loan. This loan is provided to you with your future settlement or jury award as collateral. These loans can be beneficial. However, they can also be costly. Always speak with a lawyer about your options before obtaining an additional loan after an accident.
- Debt Settlement – Despite your best efforts after an accident, you may have accumulated debt that you have a difficult time paying off. This is entirely understandable. However, instead of struggling on your own and getting yourself into a hole you cannot climb out of, speak with a lawyer about debt settlements. An attorney can directly negotiate with the debt holders, such as medical providers and credit card companies, to enable you to pay less than what you owe. Many creditors realize the benefit of accepting a lower amount now than trying to collect from you in the future when you do not have the means to pay.
- Bankruptcy – There may be a point after your accident where there are no more good financial options other than bankruptcy. Suffering a serious injury, acquiring medical debt, and being out of work is not your fault. The law recognizes that these types of situations happen, and it offers you a way to restructure or walk away from certain debt. Through Chapter 7 or Chapter 13 bankruptcy, you can make your debt payments more manageable or obtain a clean slate. Bankruptcy can help you deal with your medical debt, credit card debt, loans, unpaid taxes, and more.
Contact an Ohio Debt Relief Attorney for Help
If your financial situation has significantly deteriorated after suffering a serious injury in an accident, call Cleveland Bankruptcy Attorneys today. Our team has years of experience helping relieve individuals’ burden of debt. Depending on whether or not you have received a settlement or court award yet, or whether or not this is likely, we may be able to help you manage your growing debt through contingency medical payments and debt settlements. If the situation is beyond these measures, we can discuss whether or not bankruptcy is the right course of action for you.
We are here to help you get back to a financially stable place after an accident so you and your loved ones can focus on the future, not on your current bills. Contact Cleveland Bankruptcy Attorneys today at (216) 369-6715 to schedule a free consultation.