Preventing Bankruptcy after a Serious Motor Vehicle Accident

High Medical Bills After a Car Accident

Many people come very close to bankruptcy after a serious auto accident. You need to know this is common due to how stifling medical bills can be after injuries have been sustained and must be treated. No one plans for a car accident and when it happens, it can be not only a complete surprise but detrimental to your personal financial security. According to the CNBC report, medical bills are the biggest cause of bankruptcy with over 2 million filing bankruptcy in 2013.

What typically happens following an auto accident is the insurance company of the responsible party will try to provide compensation that they believe you will accept, according to what they feel is appropriate. They do this because they must take care of their own customer, the policy holder, not because they have your best interests in mind.

So the question is whether you should accept the insurance company’s offer at face value, or spend some time trying to negotiate with them.

What you should do first is to contact an experienced auto accident attorney. If you have already accepted some money from the insurance company, you should still contact a lawyer if your expenses are more than the compensation you were provided after the accident. A lawyer can help rectify the situation and get you the compensation you should have received in the first place.

Hit With Sudden Medical Bills After a Car Accident?

Unexpected High Medical Bills After a Car Accident

After even a minor car accident, medical bills can quickly pile up. According to the Consumer Financial Protection Bureau report, unpaid medical debt is a problem for 20 percent of Americans.

A spokesman for the National Foundation for Credit Counseling, Bruce McClary, said, "The stress of this debt is overwhelming to many people. Often, consumers just shut down due to fear and anxiety associated with getting collection letters in the mail."

The American Journal of Medicine published a study in 2009 showing that over 60 percent of all bankruptcies are at least partially related to medical expenses. This is the case, even though the vast majority of those who filed for bankruptcy had health insurance.

A recent survey by Bankrate.com verified this through their findings, also showing that over 60 percent of Americans are unable to cover unexpected medical expenses, even when costs are as low as $500 or $1000. Despite health insurance, leftover costs are most often not manageable.