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Bucks County Divorce Attorneys > Blog > Personal Injury > Using Personal Assets to Pay Traffic Incident Costs

Using Personal Assets to Pay Traffic Incident Costs

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Traffic accidents can bring unexpected financial strain, especially when medical bills, property damage, and other expenses pile up. While insurance is often the first line of defense, there may be instances where you must turn to personal assets to bridge the gap. Understanding when and how to use your assets wisely, and how an experienced Bucks County personal injury attorney can help, is key.

Personal Assets That Can Be Leveraged

Using personal assets to pay for traffic incident costs may make sense in these situations if settlements are delayed or you need immediate medical attention and cannot wait for lengthy claim processes. When in these situations, a person may access funds from one or more of the following.

  • Savings accounts. Emergency savings are designed for unforeseen expenses, including accidents. If you have funds set aside, this can be a quick and hassle-free way to cover initial costs like medical bills or car repairs while you await insurance payouts.
  • Retirement accounts. While dipping into a 401(k) or IRA should be a last resort due to penalties and tax implications, it may be an option in extreme cases. Consult a financial advisor before taking this step to understand potential long-term consequences.
  • Home equity. A home equity loan or line of credit can provide substantial funds for major expenses. This option can be viable if you need to cover significant costs quickly but require repayment planning.
  • Personal loans. Borrowing from a bank, credit union, or family member can be another avenue. Loans come with repayment obligations, so ensure you have a plan to pay them back to avoid additional financial hardship.
  • Credit cards. While credit cards offer a convenient way to pay immediate costs, they should be used cautiously due to high-interest rates. Paying off balances as quickly as possible is crucial to avoid escalating debt.

Before accessing cash from your personal resources, weigh the risks of depleting your savings or incurring debt. Consult with an injury attorney to explore all available options before making significant financial decisions.

 Get the Support You Need

While personal assets can help cover short-term costs, they shouldn’t bear the entire burden. Filing an insurance claim or pursuing legal action can provide the compensation needed to recover fully. Which is why it’s important to connect with a Bucks County personal injury attorney as early in the recovery process as possible.

Legal professionals have the skills to ensure you receive fair compensation for your damages. They also may be able to identify additional streams of recovery, such as uninsured/underinsured motorist coverage or employer liability, if applicable. And of course, if another party’s negligence caused the accident, a personal injury lawsuit could be a way to cover medical bills, lost wages, and other expenses.

Do you find yourself spending down your savings after a PA or NJ accident injury? You don’t have to face financial burdens alone. By leveraging personal assets strategically and seeking legal guidance, you can navigate these challenges effectively. Talk to the legal team at Kevin L. Hand, P.C. to learn more. Call 215-968-6602 to schedule a confidential meeting.

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