Can a Lawyer Help me Raise my Credit Score after an Accident?

No one ever looks forward to an accident, but it happens to many people on a daily basis for all sorts of reasons. Accidents can happen at work, in our homes, or out in public at places like stores and roadways. When an accident is caused by someone else’s negligence, you have the option to file an injury claim and demand compensation for your monetary losses.

Until you receive your settlement check, you expect that the accident will have negative consequences on your finances. This can happen from medical bills, missed time from work, and various other issues that are unavoidable during the recovery period. However, most people have no idea that an accident – even when it’s not their fault – can end up hurting their credit score.

We know how frustrating it can be when a credit score you’ve worked hard to maintain is significantly reduced. Today, we will explore the impact of an accident on your credit score and how an experienced accident injury lawyer can help you maintain a good credit rating. If your credit score has already taken a turn for the worse, a skilled attorney can help you clear up any mistakes on your credit report and negotiate payment arrangements with your creditors.

Please keep reading if you are interested in learning the answer to the following question:

Can a lawyer help me raise my credit score after it was reduced because of an accident?

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Why Did my Credit Score Drop after my Accident?

First, it’s important to understand that being in an accident won’t have an impact on your credit score. In short, you are not penalized by the credit bureaus for a car crash or some other incident that resulted in injuries, even if the accident was your fault. So, what’s going on here? Why did your credit score noticeably take a nosedive in the months after you were injured?

There may be several reasons to explain this phenomenon, which is quite common among accident victims. One problem is a failure to coordinate payments by the insurance companies and the medical facilities that are treating you.

Let’s say that a drunk driver crashed into your vehicle while you’re stopped at a street light. You are taken to the ER right away, as you have fairly serious injuries. You provide the hospital with your health insurance info and assume that everything will be taken care of. Months later, the hospital notifies you that your account has been sent to collections, as your bill was never paid.

This seems like a foolish mistake, but it’s quite common for medical expenses to be billed to the wrong entity after a car accident, especially if the hospital is aware that you were hurt by a reckless driver. It’s possible that the bills were sent to your auto insurance company instead of the health insurance provider. This can cause conflicts in how your bills are paid, with each side putting the responsibility on each other while your accident is being investigated.

Unless you are diligent and check up on these things right away, there’s a good chance that your credit score will take a hit due to outstanding balances at various medical centers.

Other Ways Your Credit May be Damaged after an Accident

The truth is, accidents put a huge strain on your finances, even if you have considerable savings and resources. As a result, most victims hoard their money and put more things on credit than they normally would. This is understandable when you’re trying to cover medical costs and other expenses, while working less or not at all due to the extent of your injuries.

All these activities will not go unnoticed by the credit bureaus. And as you are probably aware, each little amount adds up until the amount you’ve borrowed is 30% or more than your available credit. Once your debt to credit ratio exceeds 30%, you will notice a dip in your credit score, even if you had an excellent credit history for many years.

Can My Accident Lawyer Help Me Repair a Bad Credit Score?

Yes, a seasoned accident injury attorney can start taking steps right from the start to minimize the damage to your credit score. For newly injured victims, we are proactive in reaching out to landlords and creditors to explain the client’s situation and give them an estimate on how soon we can reach a settlement. This may be effective in keeping these entities from reporting your debts to the credit bureaus, as they know they will eventually receive payment once your case settles.

We can also counsel you on which sources are best to borrow from if you are short on funds. For example, you may consider borrowing from an IRA or another retirement account, as doing so will not be reported to the credit bureaus. Of course, there are downsides to removing money from a tax-deferred retirement account, and there may be options that will work better for you. The key is to help you find a solution that’s right for you, based on your individual circumstances.

Once your case is settled, we can help you reach out to your creditors to see if they are willing to remove negative information from your credit report. Some of them will do this, as recovering at least some of the debt is their primary interest. At the very least, they will agree to show that the debts were fully paid, which is still a positive to your credit score in the long run. We can also comb through your credit reports to see if there is any false information that should be removed – that alone can help improve your score. Keep in mind, however, that this is an on-going process, and there is no quick fix to undo the damage to your credit score after an accident.

For a detailed exploration of your rights and legal options, contact the attorneys of Normandie Law Firm.

Why is my Lawyer Not Helping Me with my Credit Score after an Accident?

This is an obvious question for any victim that hired an attorney to represent them in an accident claim: Of course, we can’t get into your attorney’s head to discover the exact reason as to why they won’t help you with this issue. But the answer may be simple; perhaps they are not experienced enough with consumer laws regarding credit scores to help you with the issues in your case. Or, they are simply not interested in helping you beyond recovering your settlement check.

Frankly, there is no obligation for your lawyer to assist you beyond representing you in a claim for compensation. Thus, we can’t say that there’s anything illegal in what your attorney is doing if they won’t help you clear up the credit issues that are associated with your lawsuit. But we believe that lawyers have an ethical and moral duty to assist their clients in any way possible.

Granted, we would never advise you in areas we are unfamiliar with, as we don’t want to provide you with false or misleading information. But our law firm has been fighting for the rights of injury victims for several decades. Throughout our journey, we have gained extensive knowledge of the credit repair process, which we have used to help our clients rebuild their credit score after an accident. The process takes time, diligence, and considerable work, but we promise that we are with you every step of the way.

Contact us for a Free Second Opinion

Were you recently injured from an accident that was caused by a dangerous condition or negligence by another individual / entity? Are you interested in protecting your credit score and other areas of your finances while you are fighting for the compensation you deserve? Alternatively, has your credit suffered already due to an unexpected accident, but you are not receiving the help you need from your current attorney? In that case, please contact us for a free second opinion consultation.

Second opinions at our law firm are not high pressure sales tactics that are driven to make you change lawyers. In fact, we fully acknowledge that staying with your law firm may be the best thing you can do, bead on the circumstances of your case. However, it may be helpful to transfer your case to a law firm that’s experienced in credit repair issues for accident victims. To learn which of these options is right for you, please take some time to speak with an accident injury lawyer at our office.

Zero Fee Guarantee

Aside from helping you maintain your credit score, we believe in protecting a victim’s finances throughout the entire duration of their case. That’s why we never charge upfront for any of our services. The Zero Fee Guarantee is our promise that you will never have to worry about legal fees when you hire us to represent you. Either we bring you compensation from an injury claim, which includes our expenses, or we make nothing at all.

All you have to do is contact us at your earliest convenience and learn about the ways we can assist you. To discuss your case with a personal injury lawyer in the Los Angeles area, call the offices of Normandie Law firm.