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Default Judgment Looming: Should I Close My Bank Accounts?

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Financial issues often represent an extremely difficult time in your life, with credit and bank accounts posing a perfect example. While it could be that you just went wild spending money on your credit cards, taking lavish vacations, eating out at the finest new restaurants, and shopping to your heart’s content, chances are something happened. In most cases in the US, consumers experience massive financial problems due to health problems like a serious illness or an accident that could have caused long-term consequences, as well as other family issues. You may have had to leave your job to take care of a family member, you may have lost a family member, or you may have gone through a devastating divorce.

Personal upheaval usually affects our finances, and that can be long-lasting. It’s likely that the longer you try to go it alone, the worse your situation will get. Consult with an experienced law firm like Fitzgerald & Campbell, APLC before delinquencies get worse, or before you find yourself being sued.

A summons and complaint are not just a financial problem, but a major legal one too. And it must be taken care of as soon as possible. While filing a response to a collections lawsuit may seem intimidating, with advice from a skilled collections attorney, you may be able to see the case defended successfully. In some cases, this could be as easy as asking the debt collections agency to prove they have the standing to sue you.  If not, there is still the chance for debt settlement, and at pennies on the dollar.

If a response is not filed though (this is usually required within 20 to 30 days of receiving the summons and complaint), there is a strong chance that a default judgment will be granted against you. Not only does this mean the creditor or debt collections agency has the power to perform more aggressive collections activity against you, but they can also do so quickly. If you are already worried about a collection lawsuit or a judgment, keep in mind that you may need to protect any funds in a checking account as they could be frozen.

Whatever funds you have deposited or saved could be unavailable until the debt is satisfied and may even include Social Security benefits that are sent to that account, although technically they are not supposed to be garnished. Having a checking account frozen can be not just inconvenient but also scary. You may have little notice before it happens, finding out about it when you are in the grocery store checking line—with no way to pay for items you were planning on purchasing. The default judgment can also result in the garnishing of wages and property seizure.

If you are concerned about impending creditor lawsuits or fighting a default judgment, consult with an experienced law firm like Fitzgerald & Campbell, APLC as soon as possible. A solution can be found to help you through any of these issues, even if a judgment has already been granted.

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

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