You may have already been teetering on the edge of filing for bankruptcy prior to the viral pandemic sweeping the world—and our nation—causing health fears, real sickness, and so much loss, with tens of millions of Americans being forced to accept the shocking loss of their jobs and ability to take care of their families. Restrictions have caused countless businesses to go under too, seriously affecting our way of life in the US.
Previous to the pandemic, consumer and household debt was already at historical highs—and enough so to begin concerning financial experts. Most of us would be hard pressed to find someone who wasn’t suffering from debt already, and usually stemming from a typical but unfortunate crisis such as a sickness or injury, loss of income, divorce, or heavy burdens like credit card debt or student loan debt.
Financial reports so far show that as of now, the financial ramifications of the pandemic, are much worse than anticipated.
“Houston had an especially high proportion of Latino households (77%) and Black households (81%) reporting serious financial problems,” reported NPR. “But the other three cities in our survey have had high rates as well: 73% of Latinos in New York City tell us their household experienced serious financial problems since the start of the coronavirus outbreak, along with 71% of Latinos in Los Angeles and 63% in Chicago.”
“Majorities of Black households in Chicago (69%), New York City (62%) and Los Angeles (52%) also report serious financial problems.”
These numbers go hand in hand with reports of clogged bankruptcy courts as well as creditors beginning to churn out the collection lawsuits. If you are being sued, take such action very seriously. While most defendants choose to ignore or walk away from such action, there can be extremely negative repercussions if a default judgment is granted against you. Without a reply to a collections lawsuit, you allow yourself to become vulnerable to financial accounts frozen, your paycheck garnished of up to 25 percent of your disposable income, and valuable property seized and sold off at public auction.
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.