When you think of car accidents, or any type of personal injury claim, you do not associate them with bankruptcy. What does one have to do with the other? Can a car accident lead to bankruptcy?

The answer, unfortunately, is yes.

What factors are behind this? And what are some things you can do to minimize this from happening to you?

Let’s take a closer look.

First: Car Accidents, And Other Events Requiring Extensive Medical Treatment, Can Lead To Bankruptcy

Over the past several years, there have been numerous studies on the connection between personal bankruptcy filings and medical debt.

For example, in one study researchers found that 66.5% of bankruptcies were related to medical issues.

Of course, medical emergencies do not come solely from personal injury claims. They can arise from various illnesses, such as cancer. But, because car accidents can cause injuries requiring expensive treatment, they can lead to large medical bills.

Second: A Unexpected Medical Emergency Can Have Additional Financial Consequences

It is easy to see how a serious car accident can lead to large medical bills which, in turn, can result in a significant financial burden. But what other financial strains are placed on car accident victims?

Job loss and reduction of income.

Car accidents and other injury claims can range from minor to severe. In severe accidents, the injury victim often loses income by way of either job loss or a reduction in income. Under either scenario, losing steady pay while medical bills pile up is a recipe for financial disaster.

Further, depending on the injury, it may be more difficult to find employment or, sadly, to be employable at all. In a study on personal bankruptcies after traumatic brain injuries and spinal cord injuries, the authors noted there was evidence that such injuries reduce the chances of long-term employment.

This makes sense. For example, if you sustained a traumatic injury in a car accident, chances are you will no longer be able to work in the same capacity as you did before the accident.

Third: What To Do After A Car Accident

Immediately after a car accident, contact a personal injury lawyer to investigate your claim. There is a chance the negligent party may have insurance coverage to pay for your medical bills, lost wages, and other financial losses.

Additionally, there may be times when your personal injury lawyer is able to negotiate your medical bills with the medical providers. While there is no guarantee he or she will be successful, in my experience most medical providers are willing to negotiate their bills down to help the injury party.

Barthelette Law, Your Boca Raton Car Accident Lawyer

If you or a loved one was involved in a car accident, call us today at (561) 246-4137. We have experience helping car accident victims.