A collections lawsuit is a serious matter arising out of ongoing debt and delinquencies. Such legal action is very common regarding unpaid credit cards, with lawsuits being filed against thousands of consumers in the US each year; in fact, it is not surprising considering that the average household carries $133,720 in debt—with over $15,000 owed to credit card companies. Student loans play an even larger role in taking a bite out of consumers’ paychecks too, with the average debt being a whopping $47,525.
Young People Especially Are Under Financial Duress
While many 20- to 30-year-old borrowers are under severe financial distress these days trying to make ends meet and pay off loans left over from education, consumers of all ages are affected when the cost of living outweighs their incomes—and in all too many cases, raises are nonexistent or too small to make a difference. While paying unsecured debt is an issue, many are having a hard time just paying for the essentials such as housing and food and healthcare. When handling the bills becomes a matter of prioritizing, delinquencies often ensue. Along with that comes the constant flurry of calls from debt collectors, the flooding of paper mail and threats, and stress. At that point it is time to consult with an experienced debt protection attorney who can help you examine your options and get back on the path to good financial health.
You May Not Have Been Able to Respond to the Collections Lawsuit
If you have already been served with a collections lawsuit, the key is to act as quickly as possible in dealing with it rather than procrastinating or just sweeping it under the rug. If you do not file a response or do not show up in court, a default judgment is likely to be granted against you—and quickly. You may have had a solid excuse for missing out on creating a response and not showing up in court, however, and that may be the impetus your attorney needs to file a motion to vacate and then fight the original lawsuit for you. You may have been sick or had to take care of a sick family member, you may not have been able to leave work—or you may have been traveling with work. In most cases, the court does want to hear from the defendant, so if you have an honest reason for being absent, there may be a good chance for a reversal of the judgment.
Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at firstname.lastname@example.org.