UNITED STATES—Many victims of accidents face mounting medical bills while they are left seeking compensation in the form of an insurance company settlement. Connecticut allows victims to file personal injury lawsuits to recover damages; however, the process from filing to payment can take months or even years. Accident victims who cannot work due to their injuries often panic as their medical bills begin hitting astronomical amounts and other bills go unpaid.
If you or a loved one are facing financial difficulties after a Connecticut accident, contact Trantolo Law Firm. During a free consultation, one of their personal injury legal experts can help to ensure you receive the best possible settlement.
Legal Funding Options for Personal Injury Victims
In a perfect world, accident victims would immediately have their financial responsibilities taken care of. However, the reality of our days is not as rose-tinted. While compensation may be due to them, it doesn’t happen overnight. The legal process and dealing with insurance companies can take anywhere from months to years. How are victims supposed to cope while they are unable to earn a living while coping with doctor’s appointments, surgeries, and medical procedures? It may seem unfair, but fortunately, there are a couple of different options.
Personal Injury Lawyers and How They’re Paid
No one should face an insurance company or defense lawyer alone without having their own legal representation. Although it won’t help when your medical bills and other financial responsibilities are going unpaid, you won’t have the additional worry of paying for a lawyer. There’s no good reason to fight for compensation alone.
Personal injury attorneys offer a free consultation appointment to discuss your case. If they feel yours is valid, most will represent you without the need for a costly retainer agreement or any type of upfront costs. They’ll only be paid if you receive a settlement, and their payment will come as an agreed upon percentage of your compensation. It is known as a contingency fee, meaning that they’ll be paid contingent on winning your case.
Settlement Loans
For those accident victims struggling to get their bills paid while the lawyers are slowly inching towards a settlement agreement, a pre-settlement loan is always an option. Many lending institutions will loan you a percentage of your expected settlement amount plus interest. Once you receive your settlement, you’ll be obligated to pay back the loan. Settlement loans have pros and cons, which should be weighed before making a commitment.
Settlement Loan Pros
- Once approved, checks are usually issued within 48 hours
- You can spend the money paying any bills or obligations of your choice
- If you lose your case, some lenders don’t require you to pay back the loan
Settlement Loan Cons
- Settlement loan interest rates are usually considerably higher than traditional loans.
- Once you receive your lawsuit settlement, you’re expected to immediately pay back the settlement loan, which could be very close to your settlement amount.
- Not all personal injury cases will qualify for a settlement loan
Medical Liens
A medical or hospital lien is a formal agreement between a patient and a healthcare provider that states that the plaintiff in the case (the victim) will continue to be medically treated without any required payments. While this may not be necessary for victims with a good insurance policy, those who aren’t insured can greatly benefit from a medical lien.
However, most medical liens state that the healthcare provider will be paid in full once a personal injury settlement has been reached. It means that they’ll be paid before the plaintiff receives any compensation. If they lose their case and don’t receive any compensation, they’re still responsible for paying any medical bills.
Legal Funding Options for Personal Injury Victims: Final Words
Accident victims on the mend who cannot work can find themselves caught between a rock and a hard place. They need continued medical care but have no way of paying for it. While a personal injury attorney can help them receive the best possible settlement from a personal injury case, it could be months or years before any compensation is given.
Two options for getting medical and other bills covered while waiting for a personal injury settlement are applying for a settlement loan or signing a medical lien agreement. While these options may not fit every victim’s situation, they are options for how to stay financially afloat while recovering or waiting for a settlement check.
