ADVANCE FUNDING IN PERSONAL INJURY CASES & CAR ACCIDENT CASES… SIMPLY A BAD, BAD IDEA!!

Recently we have seen more and more commercials influencing clients  to seek out advance funding for the personal injury/car accident/slip and fall, or other related personal injury case. It is simply a bad idea.  Here is the scenario:

You are driving along, stopped at stop sign, or simply minding your own business when you are hit by another car in a car accident, rear-ended at a stop sign, or slip and fall.  As a result of the event, you sustain personal injuries for which you are now seeking compensation.  In a Florida car accident you most likely will have Personal Injury Protection (PIP) benefits to help with medical bills or lost wages; however it may not be enough.  In a slip and fall, most companies do not have a Medical Payments (MedPay) provision in the policy the pay your medical expenses.  You are uninsured as far as health insurance.  What will you do?  Your bills are piling up!  Your rent is due, the electric bill is due, and expenses keep mounting!  Again in most every Florida car accident there will be at least some PIP benefits to help with lost wages (Though PIP only pays 60% of your lost wages).  If you went to the emergency room after the collision, it is most likely the hospital found a way to bill and use almost all of your PIP benefits (medical bills are only paid at 80% under PIP, and you still must meet your deductible) and did nothing for you but to advise you to come back if you are hurting more.  Whatever will you do…?

Car accident and personal injury lawsuit prefunding companies will come to the rescue … [or NOT].  There are numerous companies out there who will come to your rescue and provide you money before your case has been tried to a jury verdict, settled pre-suit, or settled at mediation.

Let’s call Client #1 Fred.  Fed was injured in a car accident in Orlando, FL.  As a result of the car accident fed could not go back to work.  Fred’s case went to litigation.  During the time the case was in pre-suit, and then litigation, Fred needed help with rent, utilities, etc.  Fred turned to the funding companies and borrowed about $3,500.00. By the time Fred’s case was resolved, Fred had to pay back over $5,400.00.  Almost a $2,000.00 increase from what he received.  The problem:  The $2,000.00 came from Fred’s portion of the claim.  Had Fred not received the funding he would have received at least $2,000.00 more in his pocket from the settlement.  In his case, Fred understood what he was doing, but in the end was not happy that he had to pay out an almost usury amount of interest and fees. 

Now we turn to Client#2.  Client #2 is Sally and she needed money - supposedly to help pay rent and bills.  Sally received the money, used the funds to have her car engine (the car was not involved in the accident) repaired and surgery for her pet.  Sally received $1,000.00.  As of the day she received the money, Sally had to pay back over $1,600.00.  Sally’s lawyer said: “No it is not a good idea, it is not in your best interest,” but Sally when ahead with it anyway.  As her case proceeded Sally’s fees climbed and climbed.  For $1,000.00 received Sally had to pay back over $2,000.00.  An increase of $1,000.00 and once again less money in Sally’s pocket book one the case was resolved.  

Sometimes, you have no choice, sometimes you need help.  When you are involved in a car accident, slip and fall or other personal injury matter, you need help making ends meet. If it truly an emergency and you are facing eviction, it may be reasonable to seek help from a funding company.  In most cases it is not.  Your recovery will be reduced in the end significantly.  The money is deducted from the portion of the recovery to the injured client.   In many cases the client is not happy.

You should speak to an experienced Orlando car accident or Orlando personal injury lawyer before ever considering seeking help from a pre-suit funding company.  Some companies are reasonable, many are not.  Remember they are taking risk that you may never recover money, or recovery may be limited by circumstances you may not be able to control.  Therefore they charge large fees and higher than usual interest.

Read carefully you pre-funding agreement, and think twice before signing on the dotted line.  The thrill of fast cash is soon lost when at the end of the case; you realize you are losing money out of your pocket in the form of high fees and interest rates.  At the Orlando car accident Cressman Law Firm, we rarely recommend clients use pre-suit funding.  Rather, look to family and friends for help – at least they will not charge exorbitant fees and inertest rates to help you out.  

What is Orlando Car Accident Case Worth?

Certainly the most common question we are asked is, "What is my lawsuit worth?"  No attorney can tell you during your initial conference what your lawsuit is worth.  We can offer you some insight, however, into the process:

• The cases you read about in the paper are generally important exceptions to money awards in lawsuits.  If these cases weren't "different" (either very low or very high,) then the media wouldn't be interested in them.

• No two lawsuits are exactly the same.  Just because another person settled for a certain amount or was awarded a certain amount by a jury doesn't mean that you should or can recover the same amount.

• Most people who file lawsuits do not get every penny they want or every penny they deserve.  Since the harm done to you is personal, no amount of money can make it "right" for you.  Nevertheless, it is wise to keep your expectations realistic.

• The "worth" of your case will be determined in one of two ways—either by mediation or trial by a jury.  In other words, the "worth" of your case is the amount you are willing to settle for (in mediation) or the amount that the jury decides that its worth.

• If we enter settlement negotiations or mediation for you, your lawyer will advise you about each offer you receive.  This advice is given based on knowledge of the facts of your case (both for you and against you) and based on the lawyer's knowledge and experience.  Since settlement negotiations and mediation will not occur until much later in your case, when all the facts are known, we will not give you an opinion today on the "worth" of your lawsuit.  Instead, we will advise you of the strength or weakness of the lawsuit.

We hope the above information is helpful to you.  If you have additional questions, please do not hesitate to call us at 407-877-7317, or visit www.cressmanlaw.com

HOW LONG WILL IT TAKE TO RESOLVE MY FLORIDA CAR ACCIDENT CASE

First, I would like to take this opportunity to thank you for allowing us the privilege to represent you against the individuals or companies who made be responsible for the injuries you have sustained.

During the initial course of the investigation, there are many pieces of information which our office will be collecting in the form of accident reports, reports of the incident, together with all applicable medical bills and records, pharmaceutical bills, physical therapy bills, bills with regard to any kind of medical devices or medical equipment you may require as a result of your injuries, as well as any other documentary evidence relating to the damages which you have sustained as a result of the incident.

The order and  progression of the investigation of this potential lawsuit, as well as the eventual filing a lawsuit, should it become necessary, is not a process which can be accomplished in a short period of time if it is to be handled properly.  To best represent you, and, of course, to ensure that you medical condition is stable, it is generally in your best interest not to hurry the process of the litigation.  We, of course, will proceed as quickly and as diligently as possible, always keeping your best interests in mind.

During the course of the investigation, you should not discuss this matter with anyone, except for the office staff or personnel of the Cressman Law Firm.  Always be courteous with any individuals requesting information, and inform them that you have turned over your case to your attorney, and give them our telephone number, name, and ask that they contact our office to discuss your case.

At the beginning of any claim, or eventually any lawsuit, and during the investigative stages, there are many things that we will do without directly contacting you.  For that reason, it maybe some days or even weeks, on occasion, between contacts with our office.  However, if you have any questions, please feel free to contact the office at any time and we will be happy to discuss your case with you.  

I would like to emphasize that each and every question which might occur to you regarding the process of the claim or the filing of the lawsuit or the facts underlying the claim is important to me.  Please do not attempt to decide what is or is not important.  Rather, direct any items to my attention as they occur to you.  Often times you can do that simply by dropping me a note or contacting me by e-mail.  My e-mail address is mark@cressmanlaw.com.  It does not need to be formal, just put down your thoughts briefly and forward them to my office.

PLEASE REMEMBER!!  During the course of presenting your claim or any potential litigation, you should always send us copies of any medical bills which relate to the damage and injuries which you sustained and for which you are receiving medical treatment.  In addition, you should send us copies of any bills of any kind which relate to any damages you have sustained as a result of your injuries.  This includes any bills for having to hire maids, lawn keepers, anyone to drive you to doctor's appointments, cab fare, etc.  We do not need you to call us each and every time you go to the doctor, hospital or other health care provider, but would like to be kept up-to-date on the more important events during the course of your medical care.  The simplest procedure is for you to simply write me a note and provide the information to me.  We have enclosed a Questionnaire which MUST be completed by you immediately.  Please use the enclosed, self-addressed envelope to return the completed Questionnaire.  This information is essential for us to accomplish our job.  If you have any questions in completing the Questionnaire, again, please do not hesitate to contact our office.

It is very important that we be kept advised of your current address and telephone number.  Should you move, immediately notify our office of your new address and telephone number.  Should you plan to be out-of-town for any significant length of time, please call my office and let us know.  You do not need to call the office if you are simply going away for the weekend, but if you are going to be gone for more than three (3) days during the course of the week, please call the office so that we are aware of your travel plans.

Again, I would like to emphasize that we appreciate the opportunity to represent you in this matter.  I hope that you will feel free to call me, or if you have any questions regarding the progress of your case, that you will contact our office so that we may assist you.  Please know that you are invited to schedule an appointment to meet with me personally in the office.  Should you desire to schedule such an appointment, please do not hesitate to contact the office at 407-877-7317.

If I File Bankruptcy I Can Keep My Car, Right? Maybe Not! (At Least in Florida if you are an Underwater Homeowner)

Allow me to put this in context.  The Bad News:  You have lost your job, or had to take a lower paying job.  The Good News (or so you think):  Before you lost your income, or as part of a severance package, you received a lump sum of money, you took money from a retirement account and paid off the car, or you saved every dime you could while working to set money aside for that rainy day that is finally here.

Well where to spend it?  We’ll pay off the car so at least we have transportation.  After all this is Florida.  Public Transportation is ineffective at best.  At worst, you cannot get from your home to work unless you leave hours and hours ahead of your time to be at work. The truth of the matter is, in Florida, you need a car to get around.

Finally there comes a day when money going out overwhelms money coming in and now filing bankruptcy in Florida is your only option. No problem, we do not have much, but we have our two cars – one for mom to get to work and one for dad to get to work.  Or at least two cars so one can go to work and one can take kids to school.  Whatever the scenario, at least we have our cars to get around.

Not so fast in Florida bankruptcies.  The exemption in Florida for someone filing bankruptcy for an automobile is limited to $1,000.00.  When someone files for Bankruptcy in Florida, all of your property is placed in the hands of the Bankruptcy Trustee.  All of your debt is placed in their hands too.  Now you begin to exempt property and take it back, using the Florida bankruptcy exemptions. 

Problem:  The Florida automobile exemption is as archaic as the inquisition.

Example:          Your car has a value of $6,000.00; your spouse’s car has a value of $5,000.00.  You owe NO money on the cars.  You have $11,000.00 of equity in the cars.  In Florida, you get to ONLY keep $1,000.00 per person of that equity.  Therefore, you are faced with having to “buy back” from the bankruptcy trustee the other $9,000.00 of equity. 

You have no job, or have taken a serious cut in pay.  You have to buy back the equity in 10 -12 months.  Do the math that is a payment of $750.00 to $900.00 per month, plus, in some cases, an additional fee to the Trustee of about $10.00 to keep your cars.  For a family struggling, this is worse than having to file bankruptcy.

Solution (or so you thought until you spoke with the Bankruptcy lawyer):            Florida’s wildcard to the rescue.  If you do not own a home, a married couple in the example above can, in some cases, apply the wildcard of $8,000.00 to exempt the cars out and keep them without having to pay for them a second time around.  (Note:  Depending on how car s titled may affect this solution so speak to an experienced Florida bankruptcy attorney). So in our scenario the $11,000.00 of equity is exempted to the amount of $10,000.00, if applied properly, and the buy back is $1,000.00 – a payment of $84.00 to $100.00 per month, plus the Trustee fee in some cases.

Sounds good, right?  Not so fast if you are a homeowner.  If you are a homeowner, and you want to keep your house and car, be prepared to pay the $9,000.00 to the Trustee.  At the same time you keep paying your house payment, and most likely on a house that is underwater and you owe more on it than it ever will be worth again in your lifetime.

Since a recent decision by the Florida Supreme Court, answering a question from the Federal Courts, this has been the rule.  I do not disagree with the rule.  I understand it, but to my clients it makes no sense. 

The homestead exclusion in Florida was designed to protect your home from creditors.  Most people know that, in Florida, generally, you cannot be forced to sell your home to pay a debt, except for three specific scenarios. If you have equity in your home, in many cases that equity is protected.  Your Florida judgment creditors, credit card companies or automobile lenders on a repossessed car cannot force you to apply for or obtain a line of credit against the equity in your home to pay back a debt.  Of course, very few homes in Florida have any equity in them. 

If your home in underwater, nobody wants it, not even your mortgage company.  But the Bankruptcy Trustee will, in effect, take it and put you out if you want to keep your car. So we must ask ourselves, where is the protection in a Florida bankruptcy?  It does not exist. 

Honestly, the Florida Legislature has to ask itself, if our residents have no equity in their homes, there is nothing to exempt. But day in and day out in bankruptcy courts across Florida, people are forced to make the decision:  Do I live in my house or do I live in my car? You do not get both in our scenario above.

THE REAL SOLUTION:      Fix the personal property and automobile exemption found in the Florida Statutes.  Section 222.25(2), the Florida automobile exemption was passed in 1993.  In 1993 the average new car was between $14,000.00 and $16,000.00.  Today, the average cost is $30,000 - an almost double in price difference.  Used cars, back in the 90’s the average used car price was lower as well.  At the time the Florida Exemption of $1,000.00 in equity in a car was passed, it was not too bad, not good, but not too bad. 

Of course, the Florida Legislature probably looked to the personal property exemption as guidance and the $1,000 personal property exemption had not been changed in over 100 years.  The $1,000.00 personal property exemption when it was passed is now worth less than $100.00.

It is time for the Florida Legislature to wake up from their hibernation, and get in line with today’s economic figures.  There needs to be an immediate and calculated rise in the automobile exemption afforded to the residents of the State of Florida.  Simply put a $1,000.00 equity exemption in an automobile is ridiculous.  Raise the level to equate the Florida wildcard and permit $4,000.00 of equity to be kept in a car.  Otherwise we will turn into a state of nomads traveling from city to city living in our cars.  The homestead exemption when it was passed was and will always be a good thing.  The reality is very few Floridians have equity in their homes to protect.  Now when they need help the most they are faced with the very real likelihood of walking away from their homes - resulting a flood of homes onto an already horrible housing crisis – in order to keep their car to get to work to try and start a new life.  The alternative, keep the home, give up the car – now they cannot get to work.  End result:  No Transportation, No Income, and No Ability to pay the house payment.  Guess what, we are back at the bankruptcy lawyer’s office in Florida.

Far Help with Fling a  Florida Bankruptcy, contact Mark Today.

Orlando-Kissimmee-Clermont Car Accident Statistics

According to the most recent report from Florida Department of Highway Safety and Motor Vehicles, across the State of Florida, the total number of car accidents was 235,461. Of the almost 250,000 Florida car accidents, almost 200,000 involved some kind of injury, including about 2,500 car accidents which involved deaths of a either driver or passenger.

Of the death related Florida car accidents:

• 794 were alcohol related deaths
• 106 were drug related deaths
• 499 pedestrians were killed
• 76 bicyclists were killed
• 350 motorcyclists were killed, and
• 80 deaths involved teen drivers.

In Orange County, the home of Orlando, there was 17,090 car accidents on the roads and highways traversing the county. In Osceola County, the home of Kissimmee, there was 3,141 car accidents; and in Lake County, the home of Leesburg and Clermont, there was 2,540 car accidents. In Palm Beach County, where I started my career representing victims of car accidents, there were 13,410 car accidents.

Of the car accidents in the greater Orlando-Kissimmee-Clermont area, we know that:

• 1091 car accidents in metro-Orlando were alcohol related;
• 205 car accidents in Kissimmee were alcohol related; and
• 236 in Lake County, including Leesburg and Clermont, were alcohol related.

Of the accidents in the greater Orlando-Kissimmee-Clermont area, we know that those which involved personal injuries from an automobile accident were:

• 14,818 for the Orlando car accidents area;
• 2,933 from Kissimmee car accident area; and
• 2,432 from the Clermont car accidents, including car accidents in Leesburg and car accidents in Clermont.

Motorcycle Accidents involving a death:

• 19 Deaths were reported from motorcycle accidents in Orlando;
• 3 Deaths from motorcycle accidents in Kissimmee; and
• 4 deaths from motorcycle accidents in Clermont/Lake County

Motorcycle Accidents involving Injuries:

• 429 injuries were reported from Orlando area motorcycle accidents;
• 85 injuries were reported from Kissimmee motorcycle accidents; and
• 108 injuries were reported from Lake County and Clermont motorcycle accidents.

Car Accidents involving and Bicycle Accidents with Injuries:

• 295 injuries from bicycle versus car accident cases in the metro-Orlando area
• 54 injuries from bicycle versus car accident cases in the Kissimmee area; and
• 30 injuries from bicycle versus car accident cases in the Lake County, Clermont area

To learn more about your rights and responsibilities in you have been involved in a car accident, motorcycle accident or bicycle accident in Florida please contact Orlando car accident lawyer Mark P Cressman today. Your consultation for your personal injury case is always free and can take place in your home or hospital room if you are unable to come to our offices. As always, No Recovery – No Fee – Guaranteed!

Changes to Medical Benefits for Car Accident Victims in Florida in 2013

New 2013 Florida Personal Injury Protection (PIP) Insurance Changes for Car Accidents in Florida

1.         If no treatment in 14 days of the accident, you will lose your benefits under PIP  In addition the initial services and care must be provided by a either a hospital or emergency transport, or by an M.D., D.O., D.C., or D.D.S.

2.         PIP benefits will be limited to $2,500.00 in medical benefits unless there is an Emergency Medical Condition. An Emergency Medical Condition is to be defined as a condition manifesting itself by acute symptoms of sufficient severity, which may include sever pain, and the absence of immediate medical attention could reasonably be expected to result in any of the following conditions: (i) serious jeopardy to patient health; (ii) Serious impairment to bodily functions; (iii) serious dysfunction of any bodily organ or part.

3.         Follow up care will be limited to care and treatment “consistent with the initial diagnosis.” If the initial diagnosis was for neck pain, then back pain from a Florida car accident will not be covered, and vice versa.

4.         Massage therapy and acupuncture treatment are no longer covered.  Simply put they are not covered.  If you receive this treatment, a car accident victim will have to pay for this treatment out of pocket and it most likely will not be considered by an adjuster in evaluating a bodily injury claim.

5.         The amount of the medical bills charged by the physicians, and which will be reimbursed by the car accident insurance carrier will be based on the Medicare schedules.  However, the Florida car accident insurance companies will be permitted to use the Medicare coding policies and methodology for determining fee reimbursement under Medicare and Medicaid services to determine the appropriate reimbursement for medical services provided following a car accident.

Now it is more important than ever to consult an experience aggressive car accident lawyer in Florida if you have been involved in a automobile accident.  Call mark to day for your free consultation to determine your rights if you have been in a car accident in Florida.  Call today at 407-877-7317!

Car Accident lawyer serving Orlando, Pine Hills, Ocoee, Winter Garden, Apopka, Kissimmee, Clermont, Groveland, Minneola, Oakland, Dr. Phillips, Buena Vista, and Lakeland.

Car Accident Law Changes January 1, 2013 in Florida

A Storm of Changes is Coming in 2013 for Florida Car Accident Victims!

Changes which were pushed by the insurance industry in Florida have now changed the Personal Injury Protection law to a "use it or lose it" concept.  What does this mean for you if you are a driver in Florida, or have Florida "No Fault" insurance.  If you are involved in a car accident in Florida after January 1, 2013 and you do not seek medical help within 14 days of the accident, your insurance carrier will not cover your medical bills or lost wages.  

Remember Florida is a "No Fault" state which is to mean it is a quasi no fault state since there is no real no fault state.  What this means is if you are involved in a car accident in Florida; and you are the registered owner of a vehicle in Florida, you are required to carry Personal Injury Protection insurance. Otherwise known as PIP.  Your PIP will pay 80% of your medical bills and 60% of your lost wages. The driver which caused the accident will be responsible for the other 20% and 40% of your economic injuries (medical bills, lost wages, out of pocket expenses).  

If you do not seek medical treatment in 14 days after the accident, your PIP carrier will not be obligated to pay any of your medical bills.  The issue remains, if you do not go to the doctor in 14 days, will the at fault driver be responsible to pay anything.  Most likely not.

Therefore, remember time is of the essence.  If you are involved in a car accident in Florida, and even if you are not hurting right away or the day of the accident, it is better to seek medical treatment right away.  Better to use than lose it.

Stay tuned or log back in to see more updates on the law changes for car accidents in Florida.  If you want to discuss your legal rights, call Mark, and experienced car accident lawyer in the greater Orlando area fighting for your rights. Call today, 407-877-7317.