6 Ways to Avoid Bankruptcy After a Car Accident

Every year, car accidents cause significant issues for people all over the world. Over 33,000 people lose their lives in a car crash each year in the United States alone.

Unfortunately, car accidents are no picnic for people that survive them either. Many people suffer from devastating long-term injuries. They might also have to contend with serious financial concerns, which could even lead to bankruptcy.

The financial problems associated with car accidents don’t get nearly as much attention as the physical problems. However, they can be just as painful for many people.

If you have been the victim of a car accident, you need to know how to protect yourself financially. One of your best bets is to work with a lawyer if you feel you might be entitled to compensation from the other party or your insurer.

“You could be leaving a tremendous amount of money on the table if you don’t fight for the compensation you deserve, so never be unrepresented after a car accident,” says Richard Barnes, an injury lawyer in NYC. 

Some other essential guidelines are listed below.

Properly document everything that happened in the car accident

The financial outcome of your car accident is going to be heavily determined by the decisions of your insurance company. Therefore, you need to maximize the insurance company’s probability of finding in your favour. If you don’t get a favourable decision from your insurance company, then you will at least want to make sure that you can fight them in court.

The best approach is to document the scene after the accident carefully. You want to take the photos to show them to the insurance company or your lawyers. You will also want to get statements from any witnesses that might be at the scene.

See if you are eligible for FMLA assistance

The Family and Medical Leave Act (FEMA) provides support for employees who might not work for a while. For example, you might be entitled to 12 workweeks of unpaid leave every year if you qualify.

You want to see whether or not you are eligible for this type of assistance. Any company with over 50 employees should be obligated to take this time off.

You might be eligible after having a car accident. It is worth looking into because you might need to take some time off to protect your job. Of course, you won’t get paid for the time that you take off, but you will at least be able to avoid the consequences of long-term unemployment if you lose your job altogether due to the accident.

Consider work from home opportunities if you can’t keep working for a while

You might be impaired after your car accident. This could lead to either long-term or short-term disability. Either way, you are going to need to find a way to provide for yourself if your medical issues keep you from working.

The good news is that some opportunities might help you. You might find some gig economy jobs that will allow you to work from home. You might be able to do these jobs, even if the accident rendered you incapable of doing the work you used to do.

Don’t be afraid to look into assistance programs

There are many different assistance programs in almost every state. But, first, you will want to find out whether or not you qualify for them. SNAP, TANIF, and Medicaid are some of the best programs for people that need help.

You should be able to find out more about the eligibility requirements on your state or county websites. Don’t be afraid to get help after having an accident.

Look into debt forgiveness or consolidation options as soon as possible after your accident

Do you have large outstanding credit card bills or other debts? You might not have felt that these debts were a significant burden before your accident. However, if you are unable to work afterwards, they could quickly put you on the path to bankruptcy.

You need to look into any debt assistance programs right away. You might be able to consolidate or have some of your debt forgiven. Even a modest reduction in your monthly payments could help by the time until you get a check from your insurance company or can go back to work.

Consider relocating to a lower cost of living area if you can no longer work at your current job

It might have made sense to live in an expensive area when you had a high-paying job there. However, if you have permanently lost your job after your car accident, then that might not make sense anymore. Therefore, you might want to consider selling your house and relocating to an area with a lower cost of living.