The following is a guest post.

For better part of a decade; my debt handling abilities have been pretty adequate. All of this changed with a single auto-accident (yes, St. Louis doesn’t have perfect drivers) and naivety shown by the insurance company.

Everyone knows the importance of car insurance, but I guess only few are completely covered. In my case, an auto accident on East Isabella road not only damaged my beautiful Sedan, but also caused serious harm in the form of a concussion and bone fracturing in my right hand. I had no clue about the driver as it was a hit-and-run.

Nevertheless, all of this damage should have been covered by my insurance, but I ended up being a shortchange claimant. The insurance company didn't even trace the driver or check CCTV footage to verify my claims.

There were various technicalities involved and the insurance agent was able to find some legal loopholes. In the end, I was merely covered for less than half the damage I had experienced. Not only that, but my job as a construction material supplier was adversely affected. Owing to my concussion, the doctor suggested that I should take some time off.

The insurance agent said that physical damage would be covered by medical insurance and not by them. I really curse that technicality, and long story short, I ended up $25,000 in debt pretty soon after my injury.

The reason was simple: too many expenses and insufficient coverage to manage a positive or even a neutral cash flow. Also, my anxiety got the better of me as I opted for a small term loan for revamping my Sedan.

The turning point – really saved my life

Luckily, I gained some valuable advice through a friend. He is a policy adviser and is into legislation. I was made aware of the fact that St. Louis is among those areas in the U.S. where insurance and personal injury laws are considered pretty seriously (scratched my head after what I went through).

He talked about precedents and how a personal injury lawyer can be a life saver in situations like this. At first, I was skeptical on account that hiring a lawyer would mean more expenses. However, after consultation, a lawyer reviewed my case and immediately pointed out that I should have taken legal counsel immediately because delaying the case investigation may allowed the defendant to escape liability.

In my case, I had made the situation worse by revamping my car, since no evidence could be submitted from that angle. However, the lawyer was able to work out a situation where the insurance company’s ‘technicality’ was found to be ‘misconstruing statement’. The company was found guilty of misconduct and I managed a six figure settlement that paid off my debt.

The entire point is that there are numerous situations in life that can lead to a debt situation. In my case, it was so sudden that I couldn’t even imagine. I had no idea how to repay the debt and manage my negative cash flows especially considering my physical ailment.

It is vital not to miss out any angle or a financial opportunity that can help your cash flows. My experience with legislation has made me aware of a lot of factors, especially about compensation and settlements. So, it is vital that you always make sure that you are not being maltreated or cheated by any entity.

If someone is treating you that way – sue them.

Based upon my experience, I should be starting a blog on such issues that would help people with nominal wages learn more about their legal rights.  Hmmm….