Personal Injuries

Options to get rid of debts caused by a personal injury lawsuit

Accident can occur anytime, without any prior notice. Almost every accident results in unforeseen and unwanted financial burden for which you may not be enough prepared. The situation becomes even worse, when it comes to a personal injury that requires you to file a lawsuit. You may need to spend thousands of dollars to file a personal injury lawsuit and carry on it. A personal injury lawsuit often becomes the key reason for a number of delinquent debts, which can be paid off only through debt relief programs.

Personal injuries that need to file a lawsuit

You can file a personal injury lawsuit for any type of injury; there is no specification about it. Be it work-related, road-side, vehicular or slip and fall, you can file a lawsuit for any sort of personal injury, depending on its severity.

Personal injury lawsuit and debt

The first and foremost thing that you need to do while filing personal injury lawsuit is hiring an efficient attorney. Hiring a personal injury attorney is undoubtedly an expensive, but inevitable option. In addition, you need to spend for other expenses too. As a result, you are much likely to face a huge financial bind and thereby owe debts. To get rid of these delinquent debts, you can consider any of the below-mentioned debt relief programs.

Useful debt relief options

A personal injury lawsuit can let you get into several debts. There are many useful debt relief programs that you may choose to pay off outstanding debts.

  • Talk to your creditors – Creditors may help you, if you properly explain the reasons for non-payment. They may suggest you a suitable payment option taking your financial situation into consideration. 

  • Refinance existing loan – You can think about refinancing an existing car loan or home mortgage loan to get a better deal.

  • Use IRA or 401K plan – You can get loan or borrow money against your 401k plan or IRA. Use that money to pay off your debts. However, you must talk to a lawyer before borrowing money from your retirement savings funds.

  • Owe debt consolidation loan – If your credit amount is much higher and approved by the bank, you can qualify for getting a debt consolidation loan. You can pay off all outstanding debts with higher interest rate with a debt consolidation loan. Debt consolidation loans generally come with lower rate of interest.

  • Get help from credit assistance programs – Getting help from a credit assistance program is good option to pay off piled up debts. Mounting debts are the most obvious consequences of filing a personal injury lawsuit. Credit counselors can help you set up your own debt repayment plan. It may help you pay back your loans through smaller monthly legitimate payments.

  • File bankruptcy – If you can’t get rid of escalating debts, even after applying different debt relief programs, you can think about filing bankruptcy. However, this should be your ultimate choice to make yourself free from spiraling debts.

If filing a personal injury lawsuit has buried you under a pile of delinquent debts, you must get help from any of the debt relief programs. A debt relief program is perhaps the best and most effective way to avoid the black hands of the creditors.

No comments: