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Loss of Income or Lost Earning Capacity? Know the Difference

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Blog/ Uncategorized/ Loss of Income or Lost Earning Capacity? Know the Difference

When a person experiences a catastrophic event that causes injury, they will often find that friends and family throw around confusing legal jargon when discussing their situation. Amidst all of the emotional and physical turmoil that such an incident can provoke, it can be difficult for people to understand what their rights are. This is why it is important to retain the services of a personal injury attorney as soon as possible. Law firms such as Carter Mario deal with cases like these on a daily basis, which makes them an excellent resource for those who are considering their options. When an injury affects someone’s ability to work, this group of attorneys can provide excellent, up-to-date advice on how they can move forward with their life. Discussing a case with an expert will help to clear up any unresolved questions.

For instance, one area that tends to confuse people is the difference between lost earning capacity and a loss of income. Lost earning capacity refers to a person’s diminished ability to earn money over their lifetime. If a computer programmer is hit by a car and suffers brain damage as a result, then it is likely that their future ability to work as a programmer will be severely impaired. Whenever a person’s long-term work prospects are impacted due to an incident, lost earning capacity is something that should be examined. An excellent legal firm will have the capacity to analyze what resources the injured person will require for the rest of their life. After using very complex calculations to discern how much money the person would have earned without their injury-while adjusting for inflation and other economic issues-the legal team will present a settlement figure that they believe is reasonable.

Loss of income is a much more straightforward issue. If someone is a truck driver, for example, and their right leg is injured for seven days because of an incident, then they will not be able to drive during their scheduled work time that week. If it is determined that the person who injured the truck driver is liable for the situation, then the truck driver should be able to recover the funds to make up for the seven days of work they missed.

Personal injury attorneys deal with both scenarios, and this is part of the reason why it is crucial for prospective clients to discuss their predicament with a lawyer as soon as possible. Although the terminology for injury cases can sound similar, their outcomes will vary widely. Receiving expert advice is the best way for individuals to understand what is owed to them and to move forward with their lives. Call one of the personal injury lawyers at Carter Mario today to discuss your possible claim.