How to Financially Survive After an Accident

Becoming the victim of an accident begins a period of uncertainty for your health and financial stability. Your injuries can prevent you from returning to work for a short or extended period of time. Juggling the need to pay for shelter, food, and other incidental bills can be difficult as you figure out how to get compensation after an accident. Filing a lawsuit against the person who caused your injuries is one way to recover lost wages, but it takes time to reach a resolution either through a settlement or lawsuit. Meanwhile, the bills start to roll in, and they need to be paid. Here’s a look at potential options to pay bills.

Find Alternate Ways of Working

In the event you work in a field that has the option for remote work, look into it as soon as you’re able to. If you work in a field that requires physical effort, you may be able to work in an office position until you heal. Discuss your situation with human resources or the relevant person to learn about your options while you recover from your injuries. Employers are sometimes willing to accommodate their employees while they recover from their injuries.

In the event you can’t work remotely or in an office while you heal, there are work-at-home jobs and employers who offer remote positions that don’t require you to come into an office. It may not be an ideal solution, but it’s a way to make money until you’re capable of returning to your accustomed line of work.

Budget Money Closely

If you don’t budget, now is the time to do so. You don’t know when your money flow is going to return and you need to plan accordingly. Take a good look at your finances and figure out which bills are the most important. Focus the money you have available to keep up with those payments. Life may be uncomfortable during this time, and there won’t be money for extras, but it’s a temporary situation. Eventually, you will heal and be able to return to making an income again.

Check Your Health Insurance Policy for Coverage

Sometimes a health insurance policy will have coverage for injuries sustained in a car accident. You may be able to invoke the policy to help cover medical costs and reduce what’s owed. Health insurance won’t provide you with funds for living expenses, but it can reduce the pressure from demands for payment from medical providers. Be careful about going this route as the insurance company can invoke state statutes for reimbursement after a settlement has been reached.

Find out if You Pay Into an Accident Insurance Policy at Work

Sometimes employers offer accident insurance coverage for employees. If your employer offers it, you may have signed up when you first started your job, then subsequently forgot you were paying towards a policy. Accident insurance coverage gives you money to cover your bills if you get injured in an auto accident and typically provides enough to cover your costs of living while you heal.

Get a Letter of Protection

In order to get a letter of protection, you have to be actively engaged in a lawsuit against the party responsible for your injuries. A letter of protection is created by your lawyer and submitted to all relevant medical providers. The letter states that the balances owed for services will be paid from the final settlement amount. If the provider accepts the letter of protection, they will defer demands for payment until the lawsuit has finished and money is disbursed. It’s important to note that medical providers typically only accept a letter of protection issued by an attorney.

Apply for a Personal Loan

Personal loans are an option to help you pay bills, although it may not be ideal as it adds another bill to the already mounting pile of debts. However, it does take care of pressing needs and can help you get through the period between initiating a lawsuit and getting a settlement or judgment. Consider getting a loan as a means to an end and only use what you need instead of taking all the funds at once. Once your lawsuit is final, you can pay back the amount you have remaining and use the proceeds from the lawsuit to pay back what you used.

These types of loans are usually unsecured which means they have a higher rate of interest. The benefit of going this route is getting money to use sooner than later and being able to bridge the income gap until you heal or resume employment.

File for Bankruptcy

It’s best to keep in mind that filing for bankruptcy should be the last thing you consider as a way of handling your financial problems. Bankruptcy does eliminate most of your debts, but it can preclude you from suing for pain and suffering after an accident. A potential lawsuit over car accident injuries is considered a financial asset by the court even though the lawsuit has not commenced. It can affect the filing of the bankruptcy and prevent you from filing a lawsuit if you omit the suit from the bankruptcy petition. Save the idea of filing for bankruptcy for after all proceedings have completed.

There’s no denying that making ends meet after an accident is tough and has its challenges. Explore all of your options, talk to your employer about opportunities that are available to you while you’re injured, and look into alternative options for income. Remember that injuries heal and you will be able to return to work at some point which makes the situation a temporary one. What you might not consider when healthy can be a viable option for survival while you’re injured.