Car Accidents, Medical Expenses, and Bankruptcy
Nashville Car Accident Lawyers Who Care About Your Future
While declaring bankruptcy can happen for multiple reasons, the financial debts one may accumulate after a car crash is a common cause.
In some cases, you may be underinsured, or the other driver involved might not have any insurance covering all of their expenses. Even worse, they could have no insurance coverage at all.
If you’re left paying out of pocket for your medical expenses and damages after an accident or your insurance coverage does not completely cover a car crash in which you were considered the at-fault party, filing bankruptcy before the bankruptcy court may be your only option.
At Mitch Grissim & Associates in Nashville, Tennessee, we understand that a car crash can happen anytime while on the road. When you’ve been in a car crash, it can be overwhelming to handle alone. Our Nashville car accident lawyers want to guide you through the legal process to help ensure you don’t receive a low-ball settlement for your serious injuries.
Tennessee Car Insurance Requirements
According to The Department of Motor Vehicles (DMV), all drivers are required to have liability insurance. Listed below are the required minimum limits:
- $25,000 for each injury or death per collision
- $50,000 for total injuries or deaths per collision
- $25,000 for property damage per collision
Other options, such as collision, comprehensive, and uninsured motorist coverage, are available for additional protection above the required policy limits.
What If You’re Underinsured or Uninsured?
Esurance stated that “1 in 8 drivers are uninsured.” If you’re at fault in a car wreck and your insurance coverage does not cover all the claims filed by the other driver, filing a Chapter 7 or Chapter 13 bankruptcy through a personal injury attorney could reduce or eliminate the money you’re held liable for or required to reimburse.
What If the Other Driver Is Underinsured or Has No Insurance?
If you are involved in a car collision where the other driver is underinsured or has no car insurance, uninsured motorist coverage may be your best option. This type of coverage protects you if the other driver does not have insurance or their insurance coverage is not high enough to cover all the damages and medical treatment you underwent.
If you don’t have uninsured motorist coverage in your policy, you can consider filing a personal injury claim. However, if the at-fault party does not have insurance or sufficient coverage, they probably won’t have the money to pay your debts if you take them to court.
What Happens When You Have to Pay?
If you have not filed for a bankruptcy petition, some of the expenditures you may be charged for could include:
Wage Garnishment: An Order Set By the Court
A wage garnishment is filed when the bankruptcy court has issued an order requiring your employer to withhold a certain amount of money from your paycheck to be sent to the creditors until your debt is paid off.
Medical Expenditures
Medical costs can pile up quickly when you have been injured; if you don’t have health care insurance, you may be stuck with those medical bills. These costs may encompass physical therapy, medication, and doctor appointments.
Property Damages
This damage includes any harm done to your vehicle and can consist of repairs or car replacement.
Wage garnishment, medical costs, and other damages can urge you to file bankruptcy before the bankruptcy court if you cannot manage your financial situation alone.
Frequently Asked Questions
How can I cover medical expenditures after a car accident if I don’t have health insurance?
If you don’t have health insurance, several options can help you cover medical costs after a car collision. First, check your auto insurance policy for coverage for personal injury claims or medical payments. If another driver caused the accident, their insurance might cover your healthcare costs through bodily injury liability coverage.
Additionally, some medical providers offer a payment plan, allowing you to pay your medical bills over time. Exploring state financial assistance programs and non-profit organizations can also provide debt relief, such as grants or low-interest loans, to help you manage medical costs.
What should I do if the insurance provider denies my claim for medical expenditures?
If your insurance provider denies your claim for medical expenditures, start by reviewing the denial letter to understand the reasons behind the decision. Most insurance firms have an appeal process by law, so follow their procedures and submit any required documentation promptly.
Collect evidence supporting your personal injury claims, such as medical records, bills, and statements from healthcare providers. Consulting an experienced personal injury lawyer can also help navigate the appeal for personal injury settlement process while filing litigation against the insurance company if necessary.
Can I file a bankruptcy case to discharge medical debt from a car accident?
Yes, filing for bankruptcy can discharge your medical debt incurred from a car collision. The two most common bankruptcy laws for individuals are Chapter 7 and Chapter 13.
Chapter 7 bankruptcy allows for the discharge of unsecured debt, including medical bills and credit card balances. In contrast, a Chapter 13 bankruptcy petition involves a repayment plan to pay off other debts over time. However, remember that bankruptcy filing has significant consequences, so consult a bankruptcy attorney to understand your options.
Chapter 7 is suitable for individuals with limited income and few assets. It provides a fresh start by discharging medical debts but may involve liquidating non-exempt assets. Meanwhile, filing Chapter 13 is ideal if you have a steady income and wish to retain your assets. It allows for a repayment plan over three to five years.
How can a personal injury attorney help with medical expenditures after a car collision?
A personal injury attorney can provide valuable assistance with medical expenses after a car collision by negotiating with insurance companies to ensure fair compensation. Attorneys understand the tactics insurers use to minimize payouts and can advocate effectively on your behalf.
They can file a lawsuit against the negligent party to recover money for medical expenses, lost income, and other debts if necessary. In addition, a personal injury attorney often has relationships with healthcare providers and can help coordinate medical care on a lien basis, meaning the providers agree to wait for payment until your filed personal injury claim is settled.
What types of damages can I claim in a car collision lawsuit?
In a car accident lawsuit, you can claim several damages, including medical expenses, lost wages, and property damage. Medical payments cover the cost of your emergency care, hospital stays, surgeries, medications, rehabilitation, and any ongoing medical care needed due to the accident.
Lost wages compensate for your lost income because you couldn’t work during your recovery period. If your injuries disable you from working or restrict your earnings, you may also claim future lost income.
Furthermore, you can claim compensation for pain and suffering, which covers the physical pain and emotional distress caused by the accident. Property damage includes the cost of repairing or replacing your vehicle and any other personal property damaged in the accident.
Can I receive compensation if I was partially at fault for the car accident?
Yes, you can receive compensation if you were partially responsible for the car accident, but it depends on the laws of your state. Many states follow a comparative negligence system, which reduces your remuneration by the percentage of your fault.
For example, if you are found to be 20% of the at-fault party and your total damages amount to $10,000, you would receive $8,000.
Contact Our Car Accident Attorneys
At Mitch Grissim & Associates, we know how debts after a car accident can put you or your family in a bind for money. Car accident debts and treatment expenses can significantly impact your finances.
We serve our clients with the utmost respect and dedication because we believe they deserve reliable legal representation. Whether you were injured in a truck accident or motorcycle accident, we can help.
If you or a loved one has been injured in an accident and you’re uncertain about the next steps, call our law firm at 615-255-9999 to speak with one of our Nashville car accident lawyers or fill out our free consultation form.
