In a recent article by New York Times personal finance columnist Ann Carrns, she cited recent evidence that medical debt is steadily becoming a major factor in U.S. bankruptcy filings. As much as 60 percent of bankruptcies are filed because of escalating medical expenses. Carrns cites a study conducted by an Atlanta-based nonprofit credit counseling agency, who tracked more than 47,000 clients for the first half of 2011, and over 100,000 in 2009 and 2010. The research was clear: one unexpected medical bill can upend many families’ financial health and stability.
One reason that Americans find themselves in a financial bind is because the cost of healthcare for the employed has exploded, with companies asking for higher deductibles in exchange for lower monthly premiums. For the unemployed, the out-of-pocket costs alone will create a mountain of problems. People who have lost significant income due to personal injury may be mired in the legal process, waiting for compensation on a personal injury or workers’ compensation lawsuit, and unable to make higher premium payments. Forced into a corner, families will place the expenses on credit cards or mortgage their homes, and suddenly find themselves struggling against the quicksand of debt.
But what if there were another way?
For personal injury and worker compensation lawsuits, there are third-party companies that provide lawsuit loan services for families in need. With a lawsuit loan, families feeling the pressure to file for bankruptcy due to mounting medical debt can find an avenue for relief. Before a case is settled, families can receive a cash advance that is calculated based on a settlement estimate. This simple, quick process can be concluded with the cooperation of the plaintiff’s attorney and loan service provider, working together to the benefit of the injured plaintiff. A lawsuit loan, or lawsuit cash advance can mean a fresh start for families, allowing them to pay their medical expenses, seek out physical therapy, await a fair settlement and see their way to a fresh start.
Families that face potential medical debt should not wait. Even with a strong personal injury or workers’ compensation case, the defendants have the financial power to delay the proceedings in order to put further strain on the plaintiff to settle for less earlier instead of more later. Plaintiffs should make sure to even the playing field while attending to their financial and medical needs. A lawsuit loan can ensure that plaintiffs take care of their medical expenses and avoid debt and bankruptcy.
About the Author: Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: http://www.smpadvance.com.