While taking “under the table” cash may seem tempting after a car accident, it’s not a good idea.
Here’s the situation: You get into a car accident and it wasn’t your fault. In the aftermath, the other driver propositions to keep insurance and lawyers out of the equation by paying you under the table. While this may be tempting, this type of arrangement is not favorable to you, the injured party. Here’s why.
Delayed Ailments
At the scene of the accident, you might not feel any pain. One common reason why is that adrenaline is pumping through your veins and suppressing those feelings of discomfort. If you take a cash payment and don’t get that person’s contact information, you could end up realizing that you have injuries later on. Rather than getting compensation for them, you might not be able to find the at-fault party.
Estimation Issues
Even if you have a firm understanding of your physical condition, you won’t be able to estimate the economic impact of your injuries accurately. The reason is that this issue is more complicated than you think. Not only will you need benefits for your medical bills, but you might want to utilize other areas of damages like lost wages or pain and suffering. Doing so is impossible if you settle your accident at the scene.
Tax Implications
While personal injury settlements are usually non-taxable, taking money under the table is always complicated. The reason is that you get a lump sum of cash that financial institutions don’t know about. The IRS might see this contribution as untaxed income and come knocking at your door.
No Legal Counsel
Anyone who has been through a personal injury lawsuit before knows that they can get complicated. Not only may you not understand the intricacies of the law, but you also may not have the negotiating skills of a skilled attorney. The likely result is getting taken advantage of. The deal an experienced attorney can negotiate for you will likely far surpass one you’d receive under the table. The result is more money for you to pay for your injury complications.
Now that you understand why under the table deals are so dangerous for those with damages, we hope you deny such an offer if you ever receive it. Instead, play the situation by the book and get organizations that care about your well being involved. One of the most important of them is an experienced St. Louis car accident attorney, who will fight for your benefits and get you the best compensation package possible. Give us a call 24/7 at (314) 361-4242.