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Default Judgment: Is it Better to File Bankruptcy or Just Take the Hit to Your Credit?

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Most consumers within the US are in debt, and many file bankruptcy each year. While you may have gone from having a perfect credit score only to watch it dwindle sadly during hard times brought on by an illness, accident, divorce or even unemployment, there is always a solution to getting back on an improved financial path. The key is to ask for help from a legal expert who can lend their knowledge and help protect you, acting in your best interest if you are being harassed or sued by a credit or a debt collection agency.

The problem with collection lawsuits served on most consumers is that they do not reply. This is the worst decision that could be made usually, as the creditor or debt collection agency then goes on to get a default judgment and make life much worse. If you have recently been handed a credit card lawsuit, get legal help before you are forced to deal with wage garnishment, property seizure, or levying of bank accounts; however, if you are already dealing with a judgment that has been granted against you, you may be wondering if it is better to file for bankruptcy, or just deal with the situation and try to figure out the best way to pay off your debts—or just watch your credit continue to erode and experience further fall-out legally too.

These issues can be complex, and could affect you for years to come, which is why you should speak with an experienced attorney at length about how to proceed. Filing for Chapter 7 bankruptcy is a very good option for many, and especially suitable if you are eligible income-wise. The bottom line is that in examining your options and making a decision, you are engaged in financial planning—whether you choose to file for bankruptcy and see your debts discharged in three to six months, or deal with a default judgment by allowing your attorney to file a motion to vacate and defend you, or perhaps help you to negotiate with creditors further.

The nightmare begins when you procrastinate or do not act. By speaking with an attorney and beginning to formulate a plan, you are on your way back to financial freedom. It all begins with that first step!

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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