An Injury Lawyer in Grand Rapids MI helps clients obtain financial compensation when an insurance company has denied their claim. Sometimes the process is a lengthy one, even if the attorney is working for a settlement and trying to avoid going to trial. The insurer may use delay tactics or offer low, unreasonable amounts considering the extent of the person’s medical issues.
Serious Financial Issues
As the situation goes on, financial obligations can spiral out of control. This man or woman may use credit cards to stay current with utility bills and other expenses. A person who was living paycheck to paycheck is in dire straits when no income is being produced. Social Security disability benefits may be an option if the person cannot work for a long time, but that process can be lengthy as well.
An Injury Lawyer in Grand Rapids MI may be asked whether the client should apply for a large loan or file for bankruptcy. The problem with a loan, of course, is the applicant can’t pay it back with no income.
The Possibility of Bankruptcy
The person will not be eligible for Chapter 13 bankruptcy, which allows people to pay the obligations back over a longer time frame. There must be enough income to meet the monthly combined payment. Chapter 7 is an option, but when the injury settlement is finally approved by the insurer, a large chunk of it may essentially be confiscated by the bankruptcy administrators for the creditors that did not receive full payment. This can happen even if the bankruptcy is complete and has been closed, as long as the settlement arrives within a certain time frame.
States have certain exemption laws, however, and there are legal strategies that can help the person retain most, or even all, of the settlement money. It is crucial not to make any errors in the process, which makes professional legal representation imperative.
These are tough questions that require counsel from attorneys with an organization such as Bleakley Law Offices P C. The person may want to discuss these matters in a free consultation after receiving a settlement offer that seems far too low.