Lawsuits are never a fun time on either side of the fight. Justice should always be served regardless of how much money you have. Lawyers, time off work, and other costs from a lawsuit can add up quickly.
It was reported that lawyers could charge anywhere from $100 to $300 an hour depending on the type of case and their experience; visit this page for more information. The fear of high debt after a lawsuit is real for many of us who don’t have a load of savings to put towards court fees.
We’re going to go over some ways you can stay out of debt in a lawsuit.
Take a Settlement
If you don’t want to commit the time, effort, and costs of a full lawsuit, you can opt for a settlement. This is an agreement from both parties that halts the trial and anything further.
A settlement is cost-effective because sometimes a case can take months or even years to close. This will create large bills for you because your attorney will be working throughout the trial.
Alternate Settlement Recovery
When you lose a lawsuit, you usually then owe money to the other side, as well as the bills from your attorney. If you don’t have the cash upfront, you can also give alternate solutions.
You can opt to have a percentage of your income taken out and put towards the money you owe. You’ll be able to live still and provide while paying your debts. Another way to do this is if you own more than one property.
There are different laws in each state that define what personal property is. Your primary home is usually protected, but if you have other property, you can either sell those or give them as payment.
If you’re found to be guilty and now owe a lot of money to the other party, you can declare bankruptcy. This might not be the best thing to do, but it will mean that any amount of money owed will be cut off.
You shouldn’t think of this as the first thing to do if you find yourself with built up debt. However, if your lawsuit isn’t the only debt you owe, it might be a way out of an even worse situation.
The Bottom Line
Dealing with legal troubles is never something we want to do, but it’s a part of life and costs a reasonable sum of money.
The best way to stay out of debt is by taking a settlement, offering alternate settlement recovery, and as a last resort, filing bankruptcy.