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Creditors May Decide to Renew Default Judgments

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The problem with debts is that they generally do not go away until you pay creditors off; in fact, they could hang out there in limbo for quite a while—and this is especially obvious if your debts have been sold to a collections agency that issues a whole lot of threats but never seems to take any real action aside from calling incessantly and writing you letters that may offer settlement amounts. If you don’t have any income to pay them and cannot come up with a lump sum in cash for a debt settlement, you may find yourself with little to say and confusion about what recourse to take. In the meantime, they will continue hounding you, and probably for years; in fact, they may still be trying to collect after the statute of limitations has run out on the account.

Depending on the creditor though, you could find yourself being served with a credit card lawsuit much more expediently then expected. They are probably a large corporation well equipped to take legal action, and very experienced at doing so. This can be a problem for you not only initially, but also as time goes on. We have discussed the topic of being judgment proof several times in past blogs, along with how rare that is for most individuals—especially for the long term. You may not have a job now. You may not have assets, or even a checking account now. With the judgment lasting ten years however, consider how much could change before procrastinating in dealing with a collections lawsuit or completely failing to reply.

In working with a skilled collections lawsuit attorney, you may be able to fight the case altogether (this can be much easier than you may imagine!) or settle the debt. Most importantly, you can work to avoid a default judgment which involves much more challenging collections activity than you were experiencing previously. Once the judgment has been granted against you (and this will probably happen automatically if you are not in court), the creditor is able to garnish your wages each pay period until the debt is satisfied—or they may levy checking accounts or seize property and sell it at auction. If you are judgment free at the time they may not be able to do anything, but after ten years, in California the creditor or debt collection agency can easily have the judgment renewed for another ten years.

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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