Financial catastrophes from out of the blue are rare. But they can be life altering.

We've talked before about planning out our finances in such a way as to eliminate, or reduce as much as possibility, the chances of a catastrophic event from crippling us.

 Unfortunately it's not always possible. 
You still have to plan your way as best you can. 
Better planning on your part means less surprises later.
 But the unexpected is still the unexpected.

In the event of an unforeseen catastrophic event the first thing to do is:
DON'T MAKE THINGS WORSE.

Don't panic, and don't make rash decisions.
 The wrong response is worse than no response at all.

That doesn't mean your not to do anything at all.
If disaster strikes you're response should be tailored to the specific circumstances.
Below is a list of steps to consider if something bad should happen.

WHAT TO DO.

Assess the situation. 
Try not to become emotional and understand it's not the end of the world.

Completely assess your finances. 
You should already have a clear grasp of your financial situation.

After this you can better understand what money there is to spare compared to what you'll need to spend.

What to do if you have no choice but to take out a loan.

Go to YOUR bank first. 
They already know you and have all your information.
 It's also the least likely place your going to be turned down.
 Know ahead of time what kind of loans your bank offers and the rates involved. This can usually be done online beforehand.
 Try not to get any kind of loan tied to your home. 
That means not using your home as collateral.

If you have absolutely no choice except a loan backed by your home, such as a HELOC, you have to be completely certain you can pay it back. 
If not,
 YOU LOSE YOUR HOME.
 So it's a last resort.

If the emergency your involved with has any possible legal implications whatsoever, contact your attorney immediately.
 Don't wait even a day.  You should already have an attorney on retainer (it's not expensive).

Inform your employer as soon as possible if you feel you might have to take some time off in the near future.

Contact your insurance agent and have your paperwork handy if your sure you'll have to file a claim.
 But only if your sure a claim will be needed.

WHAT NOT TO DO,

Again don't panic. You'll get through this. 
And probable sooner than you think.

If something needs to be repaired and it's going to be expensive shop around. 
Also be wary of low ball quits.

Don't make promises you can't keep. 
Once you have your stuck with something you said when you weren't thinking straight.

No matter how dire avoid short term high interest loans.
 Theres always a better option.

Whatever you do, don't ignore the problem and hope things just get better on their own. 
Ignore them as much as you want but they're not going away.