QUESTION
Can you delay paying bills without lowering credit score until personal injury case is over? How?
Asked on May 25th, 2015 on Personal Injury - North Carolina
More details to this question:
I have been involved in a personal injury case for almost a year now. I was badly injured in a car crash, and we have been battling the insurance company since. I have had to a pay a large number of medical bills - doctor and hospital visits, tests, physical therapy - and I am beyond broke. The insurance company made me an offer that is less than I wanted but would cover most of my expenses. My lawyer says we should wait for a better deal, but I think I might have to declare bankruptcy if we do not make a deal soon. Should I wait? Are there ways to delay bills until we settle?
12 ANSWERS
Edwin K. Niles
You and your lawyer should sign liens in favor of each medical care provider, assuring them payment when the case is settled.
Answered on May 26th, 2015 at 7:35 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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In many states, hospitals are permitted to take a lien on the proceeds of a lawsuit up to the amount of their bill. This is one protection they may have. You can explain to them in detail your financial situation and why you have to delay completing payment. You can be sure that they have encountered this situation many times before. Perhaps your lawyer should help and in fact, he or she is the one who should be answering this question. Bankruptcy may be worth considering if you are 'beyond broke.' Speak with an experienced bankruptcy lawyer in your vicinity. Good Luck.
Answered on May 26th, 2015 at 3:55 PM
James Eugene Hasser
There are ways to keep the creditor wolves at bay short of bankruptcy. These are all questions and issues you need to be discussing with your lawyer. But whatever you do, don't file bankruptcy without talking to your mva lawyer. You could wind up losing your right to sue for your injuries if it is not done right. Good luck.
Answered on May 26th, 2015 at 2:51 PM
Ronald A. Steinberg
I don't see how you could. The debt is independent of the injury case, and of course, you could always lose the case. Under Michigan law, you would turn the medical bills over to your own auto insurance for payment IF the bills arose "out of the operation of a motor vehicle."
Answered on May 26th, 2015 at 7:41 AM
Chapter 7 Bankruptcy Attorney serving Syracuse, NY
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Andrew T. Velonis, P.C.
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Yes, you can delay bills, but as you suggest, that will adversely affect your credit score. Also, you can declare bankruptcy while your case is pending, but you will only be allowed a certain amount and the rest will go to your creditors. If your personal injury lawyer does not handle bankruptcy, ask him/her for a referral for a consolation with a bankruptcy lawyer and discuss some scenarios with different numbers and see how it works out.
Answered on May 26th, 2015 at 7:13 AM
Lisa Hurtado McDonnell
The insurance company should be paying your on going medical bills, if their is no question about liability. Have you exceed the pip insurance? The overall settlement should wait until all medical issues are resolved.
Answered on May 26th, 2015 at 12:48 AM
You should speak with your own attorney, as he/she is handling the case. Unpaid bills are not reported to the credit bureaus until the creditor decides to do so. You could contact each one to get them not to report. But I do not know whether not paying any of the bills has less of an effect on your credit than declaring bankruptcy. I would think your petition would not be granted with a recovery large enough to pay all of your bills, so filing for Bankruptcy probably is a lose-lose situation for you. Once you do settle, your attorney will negotiate with the creditors and most if not all of them will reduce their claims. Some medical providers, in fact, have charged you more because insurance is involved so they think they can collect more than what they would charge some one who was injured without any insurance coverage being involved. But your attorney should have already told you this.
Answered on May 25th, 2015 at 11:47 PM
1 Award
You should rely on your lawyer's advice about this. You should avoid filing bankruptcy, if at all possible. If you file for bankruptcy, your personal injury claim will have to be declared as an asset in your bankruptcy petition. The trustee in bankruptcy will then be the person to call all of the shots, such as whether to accept to reject a settlement offer from the insurance company. You, therefore, will no longer be in control of your claim. Perhaps your lawyer can talk to your creditors to let them know that you will be able to pay them once your claim has been resolved.
Answered on May 25th, 2015 at 11:45 PM
Personal Injury Law Attorney serving San Diego, CA
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Law Office of Robert Burns
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Your lawyer is paid to answer such questions. I am not paid to answer such questions. Until I should be presented with a good reason for me to answer such questions, I decline to do so.
Answered on May 25th, 2015 at 11:38 PM
Personal Injury Attorney serving Pasadena, CA
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Law Offices of Pius Joseph
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This is a serious issue you need to address with the lawyer. If you have a case of significant value and you are essentially being haunted with bills try to work out a lien for those bills. If your lawyer is knowledgeable about it you can obtain a lawsuit advance in an injury case and take care of your priorities to avoid bankruptcy if you can. Bankruptcy will complicate your injury claim and proceeds once you get it. Do not file it until you discuss the ramifications with your lawyer or someone competent about the subject. Good Luck.
Answered on May 25th, 2015 at 11:33 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Your attorney knows better than anyone off the internet. See and take their counsel.
Answered on May 25th, 2015 at 8:02 PM
Possibly, it depends on the specific bills. Ask your attorney.
Answered on May 25th, 2015 at 7:56 PM