How to Avoid Financial Freefall After a Serious Injury

A serious injury doesn’t just cause physical pain. It can hurt your finances, too. One minute, you’re just living your life, working as usual. Then, suddenly, you’re buried in medical debt, you can’t work, and you’re scrambling to pay the bills. The financial impact of an injury can feel overwhelming, but with a solid plan and the help of an attorney, you can get things under control.

Assess your financial situation realistically

First, take inventory of all your income and expenses and document everything to the penny. This is critical for making the right financial decisions. For example, if you do your finances and see that you’ve got $500 each month in bills beyond your income, you can quickly identify unnecessary expenses to cut.

Review your insurance coverage

Between your healthcare insurance and other policies, you might be able to cover some of your medical bills. Dig into every policy that might apply, like short-term disability through your employer.

Consider filing a lawsuit

If someone else caused your injury, whether it was a car crash, workplace accident, or medical negligence, you might be entitled to compensation. You shouldn’t have to take on medical debt or be forced into bankruptcy over medical expenses that aren’t your fault. Seeking compensation through a lawsuit can bring the financial relief you need.

Consult a personal injury attorney right away to see if you have a case. Most lawyers offer free consultations and work on contingency, which means you won’t have to pay them unless and until you win. In that case, they’ll accept your settlement checks on your behalf, deduct their fee off the top, and send you the rest.

If you are considering legal action, avoid speaking to any insurance adjusters. If you’re being offered a payout, it’s most likely far below what your case is worth. Worse, it might not even cover all of your medical bills and lost wages. It’s crucial to hire an attorney to make sure you get a fair settlement.

Explore additional sources of income

Just because your regular paychecks stop doesn’t mean you don’t have options. Look into the following for additional income:

• Disability benefits. Whether short-term or long-term, if you have disability coverage, it should cover 40-70% of your regular pay for a little while.
• Social Security benefits. You might be able to receive Social Security Disability Insurance if your condition qualifies.
• Look into workers’ compensation. If you were injured on the job and your employer has workers’ comp, you’ll likely need to file a claim to get compensated.
• Consider crowd funding. Using a platform like GoFundMe can be helpful short term, but be transparent about how you’ll use the funds.

Supplementing your lost or diminished income is essential. However, be careful about taking on side gigs because it might ruin your eligibility for disability.

Negotiate your medical bills

You might be surprised to see how much you can lower your medical bills just by negotiating lump sum payments and correcting billing mistakes. Some hospitals even have hardship programs that reduce or eliminate bills based on income.

If you’re struggling to pay a bill, contact the healthcare provider’s billing department and ask for a current itemized copy of your bill. Go over every line to make sure it’s accurate and contest what isn’t. From there, ask if they’ll accept a lower amount if you can pay your balance off in full. If that doesn’t work, request a payment plan with no interest to break down your payments into manageable chunks.

Even though it might seem scary, medical providers are willing to negotiate. According to data collected by Lending Tree, 59% of Americans burdened by medical debt have attempted to negotiate a bill, and 93% reported at least partial success. In fact, 66% received exactly what they requested. So don’t leave this option on the table.

Prioritize important bills

When your income has been cut short, every dollar matters. Meet your basic needs first, like rent, food, and electricity. If you have to put off paying your credit card bills, do it. Don’t put yourself into a dire situation for no reason. If you’re worried about your credit accounts, call them and tell them what’s going on. Some have forbearance programs and temporary hardship plans you might qualify for.

Take charge now

A serious injury can disrupt your entire life, but it doesn’t have to tank your finances. By staying organized and working with a trusted personal injury attorney, you can start recovering faster and smarter.

Whether you’re facing medical bills, lost income, or both, a little diligence will protect your financial future.