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How to Deal with Money Problems in Car Accident Cases

Troy suffered massive injuries after he t-boned an 18 wheeler that failed to stop at a stop sign. After surgery on his fractured hip and staying in a rehab hospital, his most burning questions were, “I am injured, I can’t work, how do I pay my bills?” Troy worked as a pest exterminator, lived with his sixteen year old son and had a 3yr old child with his girlfriend.

The topic of money, (especially the lack of money around bill time), can be a highly emotional issue. For example, my dad went bankrupt, belly up and broke in the oil business way back in the 50s. There were five kids to feed, ages 3 to 18 that wanted to eat three times a day, day in day out. My memory of those times involved my parents arguing and fighting a lot, often about money or rather NO money.

I wanted Troy to know if I could, I would waive the magic wand and make this all go away. I’d make the truck stop, he would proceed to the next home appointment, his life would continue on its normal routine –work, kids and girlfriend. He would then avoid the endless rounds of doctor and physical therapy visits for some undefined time in the future. I also wanted Troy to know, that if I could, I would write him a check for a GAZILLION dollars or whatever amount was needed to help his family during these hard times. Sadly, I don’t have a magic wand, so we must take a different, more realistic approach to the situation.

Here are rules of the road— a map needed to survive driving in the world. Think of this survival as if you were in the middle of the Grand Canyon where it is 120 degrees with no water. It is crucial that you figure out the most direct route out in order to survive. Troy needed to survive while we assisted him towards the destination of making a money recovery.

The most important point to keep in mind is that the bad driver’s insurance is going to make one payment to him, one time, on his PI claim. This would occur after he signed a release stating he was not going to come back and make a claim for one penny more. Do not sign at this point if you are in the midst of medical treatment because you do not fully know the extent of treatment or the final amount of those bills.

  • Warning Sign – Do not look for the bad drivers insurance to help you. They don’t care about you, your pain, your need for medical treatment,
    your bills or your family. They only care about one thing – paying you as little as possible for you signing that release.
  • Disclaimer – This does not pertain to your property damage. I will have a video that goes into the details of dealing with that. For now, it is a separate claim and property damage claims are usually resolved within the first 30 days without attorney involvement.

What are the survival tips Troy needed?

  • First, we look at the auto policy to determine if there are medical and wage loss benefits available. Most policies contain some type of medical benefits. If so, we make a claim for those benefits. In Troy’s case, the automobile policy did not apply.
  • Next, it’s possible that there are employment benefits that include health insurance and possible both short-term and long-term disability benefits. Troy had insurance coverage through his employer and it paid his medical bills, along with a partial weekly wage loss.

But as time went on, Troy recovered from excessive surgeries. He needed more financial help with this burden and continued to worry about transportation since he was behind on his pickup truck and insurance payments. Another option may be to seek a loan from a bank or credit union. Possibly family or friends can help with this. But since he was not working, he did not qualify for a loan from a bank. His friends and family would have helped if they had any money to spare, unfortunately, they didn’t.

I explained to Troy that there was a last resort; one which I advised against and did not recommend, but it is called red light danger. Red light danger is applying for a loan against the settlement. These types of loans carry high fees and high interest rates. But since he had no other choice, the dangers and risks had to be ignored, especially when it comes to feeding the kids and making car payments in order to have transportation. Troy made two separate loans and eventually ended up paying almost twice the amount that he borrowed. These are very, very expensive loans.

When Troy looks back, he remembers those times were indeed hard, challenging, stressful, and difficult on him and his family. But after settling his case, Troy now knows the truth of the saying “this too, shall pass.” Bad luck and hard times are often temporary and he was able to move past that.

Like you, Troy needed the information to survive while he obtained medical treatment, and while his claim was pending. If you spoke to Troy, he would tell you:

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How to Deal with Money Problems in Car Accident Cases

Troy suffered massive injuries after he t-boned an 18 wheeler that failed to stop at a stop sign. After surgery on his fractured hip and staying in a rehab hospital, his most burning questions were, “I am injured, I can’t work, how do I pay my bills?” Troy worked as a pest exterminator, lived with his sixteen year old son and had a 3yr old child with his girlfriend.

The topic of money, (especially the lack of money around bill time), can be a highly emotional issue. For example, my dad went bankrupt, belly up and broke in the oil business way back in the 50s. There were five kids to feed, ages 3 to 18 that wanted to eat three times a day, day in day out. My memory of those times involved my parents arguing and fighting a lot, often about money or rather NO money.

I wanted Troy to know if I could, I would waive the magic wand and make this all go away. I’d make the truck stop, he would proceed to the next home appointment, his life would continue on its normal routine –work, kids and girlfriend. He would then avoid the endless rounds of doctor and physical therapy visits for some undefined time in the future. I also wanted Troy to know, that if I could, I would write him a check for a GAZILLION dollars or whatever amount was needed to help his family during these hard times. Sadly, I don’t have a magic wand, so we must take a different, more realistic approach to the situation.

Here are rules of the road— a map needed to survive driving in the world. Think of this survival as if you were in the middle of the Grand Canyon where it is 120 degrees with no water. It is crucial that you figure out the most direct route out in order to survive. Troy needed to survive while we assisted him towards the destination of making a money recovery.

The most important point to keep in mind is that the bad driver’s insurance is going to make one payment to him, one time, on his PI claim. This would occur after he signed a release stating he was not going to come back and make a claim for one penny more. Do not sign at this point if you are in the midst of medical treatment because you do not fully know the extent of treatment or the final amount of those bills.

• Warning Sign – Do not look for the bad drivers insurance to help you. They don’t care about you, your pain, your need for medical treatment,
your bills or your family. They only care about one thing – paying you as little as possible for you signing that release.

• Disclaimer – This does not pertain to your property damage. I will have a video that goes into the details of dealing with that. For now, it is a
separate claim and property damage claims are usually resolved within the first 30 days without attorney involvement.

What are the survival tips Troy needed?

• First, we look at the auto policy to determine if there are medical and wage loss benefits available. Most policies contain some type of medical benefits. If so, we make a claim for those benefits. In Troy’s case, the automobile policy did not apply.

• Next, it’s possible that there are employment benefits that include health insurance and possible both short-term and long-term disability benefits. Troy had insurance coverage through his employer and it paid his medical bills, along with a partial weekly wage loss.

But as time went on, Troy recovered from excessive surgeries. He needed more financial help with this burden and continued to worry about transportation since he was behind on his pickup truck and insurance payments. Another option may be to seek a loan from a bank or credit union. Possibly family or friends can help with this. But since he was not working, he did not qualify for a loan from a bank. His friends and family would have helped if they had any money to spare, unfortunately, they didn’t.

I explained to Troy that there was a last resort; one which I advised against and did not recommend, but it is called red light danger. Red light danger is applying for a loan against the settlement. These types of loans carry high fees and high interest rates. But since he had no other choice, the dangers and risks had to be ignored, especially when it comes to feeding the kids and making car payments in order to have transportation. Troy made two separate loans and eventually ended up paying almost twice the amount that he borrowed. These are very, very expensive loans.

When Troy looks back, he remembers those times were indeed hard, challenging, stressful, and difficult on him and his family. But after settling his case, Troy now knows the truth of the saying “this too, shall pass.” Bad luck and hard times are often temporary and he was able to move past that.

Like you, Troy needed the information to survive while he obtained medical treatment, and while his claim was pending. If you spoke to Troy, he would tell you:

  1. You will survive
  2. That I was his lawyer and I only accept car accident injury cases.
  3. I will make a claim for your medical bills, your wage loss and all other losses you may suffer.
  4. I expect to make a recovery for you.