Anyone who has faced the problem of trying to stay current on bills after suffering an injury at work or in an auto accident can relate to the extreme anxiety that occurs in this situation. Automobile insurance deductibles, repair bills for the vehicle, and doctor visit copay charges are just a few of the expenses demanding payment. These and other mounting charges just keep piling up, and then there’s the fact that the injured person is missing work, and no paychecks are arriving during this time.
With such expenses rapidly rising, it is little consolation to know that the filed lawsuit will likely take months or even years to reach a point where the victim will see any financial compensation. Even when a lawsuit is finally settled, there may still be a long time gap before any funds reach the injured person. How can this individual make it financially and pay bills during the lawsuit period?
Paying Medical Expenses Following an Accident
Individuals often immediately turn to their health insurance policy for all medical expenses to be paid after an accident. Because lawsuit settlements can take an extremely long time to process, the only way many people can cover their immediate medical costs is to use their own personal health insurance. In order to avoid extra fees, charges, and any damage to their credit from unpaid medical expenses, these individuals choose to utilize the coverage provided by their own policies.
In cases where other drivers caused the injuries, the negligent drivers’ insurance coverage amounts may be so low that the limits won’t pay for all the medical costs of the victims. Thus, this leaves little option for victims, and they are often forced to rely on their own insurance coverage.
If injured victims’ claims are resolved in their favor, they may find themselves going through a subrogation process with their health insurance company to pay back the amount previously paid by the insurer. The insurance company will seek reimbursement first from any other insurance company involved. A healthcare provider can put a lien on individual lawsuit claims to guarantee that the amount will be paid to the medical provider before any individuals get their settlement funds.
Medicaid or Medicare
People who have Medicaid or Medicare coverage can potentially use this option to pay for needed treatment following an accident. However, the injured parties may have to pay back the amounts if they later receive financial compensation through a jury award or a settlement.
PIP or Med Pay
Personal Injury Protection and Med Pay coverage allow for payment of medical costs following an accident, no matter whose fault it was. Individuals with such coverage may file up to their policy limits.
Negotiate With the Hospital
Some options may be available when dealing with the hospital concerning a debt. Some people have successfully negotiated for a reduced rate on their bills. Others have worked out a payment plan with the hospital while waiting for their lawsuits to settle.
Authorization and Assignment
An individual may be able to work out an agreement with the medical provider whereby there is a signed declaration stating that the medical costs can be taken from any proceeds the victim receives through a court award or settlement. This process requires a signed authorization and assignment contract with the injured party, the attorney, and the medical provider. Under these agreements, medical expenses must first be paid from settlement funds before any disbursement to the victim occurs.
How to Pay Other Expenses While Recuperating
While medical costs can potentially be covered through health insurance, these aren’t the only costs an injury victim faces following an accident. Missing work most likely means missing paychecks. Having no income will severely complicate the recovery process. The stress and anxiety produced by mounting household bills, coupled with an inability to do normal daily duties, can easily overburden an individual. Further, having to pay others to do regular maintenance work, cleaning and childcare can cause expenses to skyrocket.
Some people seek financial help through a personal loan. These loans are not secured and may also be called a line of credit. An applicant most likely has to have a very good credit history and usually an established relationship with the financial institution. Unfortunately, many people simply do not have good enough credit or can’t afford the costs associated with this type of loan. Others may want to use credit cards during this trying time, but balances can easily become too high.
When there are no family members to turn to financially, and there are limited or no savings, accident victims may want to check into pre-settlement funding. The Legal Funding Group is a provider that can offer funding options to individuals who feel they have a successful legal case headed for a positive resolution. This financial option can help accident victims stay solvent while their cases are being settled.
Apply for Legal Funding
The finances provided through pre-settlement funding are not loans. The term lawsuit loans will sometimes be used when, in actuality, this is not an accurate label. Legal funding differs from loans in a very important way. If a lawsuit is lost, the individual does not have to repay the funds received. Additional titles for pre-settlement funding include lawsuit funding, legal funding, or lawsuit cash advance.
The Legal Funding Group offers a funding program to accident victims who are awaiting a verdict or settlement payout. During our quick process, we measure the strength of a lawsuit and provide cash within a few days of receipt of the application. The money becomes available immediately to be used in whatever way the plaintiff desires.
Some basic criteria are required for legal funding, as follows:
- There needs to be a strong case. The legal funding provider assumes risk when providing money based on a pending lawsuit. Therefore, the company must have confidence in the case’s strength and that it will culminate in the plaintiff’s favor.
- Plaintiff’s attorney must be hired on a contingency fee basis, meaning the attorney gets paid only if there is a winning verdict or settlement is reached.
- Defendants named in the lawsuit must have the ability to pay the damages themselves or via the insurance company.
Simply submit an online application for a quick determination to see if legal funding will work for you. Contact our team today.