Debt Relief Options While Filing A Personal Injury Lawsuit

If you're filing a personal injury claim, you may find yourself in a financial bind. Depending on the extent of your injury, it might mean that you are unable to work as a result of the accident, whether it is vehicular, work-related, or slip and fall. You may be forced to turn to debt relief measures in order to get yourself back on track to help pay off your personal injury lawsuit. Below are some popular financial solutions to consider:

• Consider speaking with creditors - Creditors may be able to help you if you explain that you are having financial difficulties as a result of a personal injury claim. Creditors can set you up with a manageable payment plan to help you get through the difficult time if you qualify.
• Loan Refinancing - Consider refinancing a mortgage or car loan only if you are able to lock in low rates.
• Debt Consolidation Loan - If your credit is high enough and is approved by a bank, you could qualify for a debt consolidation loan which entails taking out a loan to help pay off your pending personal injury lawsuit.
• Borrow Money from Your IRA/401K - You may consider borrowing against your IRA or 401k to pay off the expenses of a pending lawsuit. However, before borrowing against your savings or retirement fund, speak to a tax advisor. You may end up paying hefty tax penalties that might not be worth it.
• Credit Assistance Programs - There are credit assistance programs that may be able to help you manage your looming debt that is piling up as a result of your personal injury lawsuit. A credit counselor can help set you up with a debt management program that may be able to help you by setting up lower monthly legal payments.
• Bankruptcy - If you continue to face mounting debt from your lawsuit and have determined that the above measures are not practical, bankruptcy is another (while drastic) way to maintain your assets. Keep in mind that filing for bankruptcy will prevent you from getting credit for up to 10 years. It is highly recommended that you seek the assistance of a bankruptcy attorney. While Congress overhauled the U.S. Bankruptcy Code in 2005 making it more difficult to file bankruptcy, you are protected by federal law. The purpose is to give you a fresh start if you are successful in filing for bankruptcy.

All content on Accidents.com is for informational purposes only and is NOT intended as legal or medical advice. Please seek advice from a professional on any related topics.

Tags:  Accident Claim · Bankruptcy · Debt Relief Services · Personal Injury Claim Preparation · Personal Injury Claims