How to Keep Track of Your Finances During a Lawsuit

How to Keep Track of Your Finances During a Lawsuit
  • Opening Intro -

    Filing a lawsuit means that you are probably going to have to manage legal costs in your case as well as personal expenses related to the lawsuit.

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Although many attorneys collect their fee only after a settlement is reached and a specific amount is paid by the defendant, you may still be expected to pay for filing fees and witness expenses, like depositions and court testimony.

If you have lost work due to an accident or have medical expenses that are mounting, you will need funding to pay these now to protect your credit rating. Here are some ways to track your finances during the lawsuit proceedings.

Use a Low-Interest Credit Card

Pay your lawsuit-related expenses from the same source, like a credit card. Use one with a low interest rate. Some introductory credit card rates offer very low rates for between six and eighteen months, so find out if you qualify for one.

Then pay all the lawsuit-based expenses from that account so they will be easier to track instead of having them on several credit cards or checking accounts.

When the settlement is paid, it will be easier to pay off the balance and not risk overlooking a bill you paid from your regular checking or credit accounts.

Apply for a Home Equity Line of Credit

If you own a home that has built up equity, ask a lender about a home equity line of credit. These often come with a low introductory rate as well.

When you receive the settlement funds, you may no longer need the equity account after paying the lawsuit expenses in full.

Get a Lawsuit Settlement Loan

A lawsuit settlement loan is like an advance on your expected legal award or settlement. Your attorney can give you an idea of how much compensation you might be given, and you can apply for lawsuit settlement loans for your cases. This is another way to keep the expenses connected to your lawsuit separate from other bills you are paying, which makes for easier accounting and payoffs when the lawsuit is settled.

other valuable tips:

Ask a Relative to Lend the Money

Although it is wise to be cautious when asking for a loan from a family member, you may want to offer at least a low interest return in appreciation for the loan. This makes the transaction beneficial to both parties. If you have a good relationship with the family member and aren’t known for squandering financial resources, you have a better chance of using this option.

Financial obligations can accumulate quickly during a lawsuit. Keep these expenses separate from your regular bills and pay them off promptly as soon as the settlement payment arrives.

Image Credit: Pixabay

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Consumer Tips reference:

GUIDE: maximize your credit card awards

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