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Default Judgments & Collection Lawsuits: Debt Collectors Expected to Double Up on Efforts

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At the beginning of 2020, your financial outlook may not have been exactly rosy. In fact, like millions of others in the US, you may have already been worrying about cracking under the weight of student loan debt and credit cards—not to mention keeping it together to pay for all the basics like your home, car, prescriptions, utilities and food. This is especially stressful if you have dependents counting on you too. Little could compare to the disruption caused to most of our lives as COVID-19 began to sweep through the US (and the world), resulting in sickness and death, shutdowns, lockdowns, and restrictions like none of us could have imagined.

Like tens of millions of other Americans, you may have lost your job entirely, or had significant hours cut. If you became ill with coronavirus (or anything else, for that matter), medical bills could have piled up into such an overwhelming ordeal that you have no idea where to turn. This could also be exacerbated by previous personal crises causing financial stress too, depending on your health, job, or family situation.

Projections for debt collections in the future sound dire for debtors—especially as some debt collections agencies are coming back to life after being quelled for months, and creditors are reaching out to a massive wave of delinquent account-holders. Some collections activity may be tentative, while other agencies are quite aggressive. Not all debt collectors remained dormant during the spring and summer months though, with some companies boasting extremely good earnings—most especially if their debt collectors working from home were able to focus on specialized areas like collecting old credit card bills.

The final quarter of last year showed historical highs, with US household debt resting at $14.15 trillion. Financial analysts continued to raise concerns at that point that student loans could affect the real estate economy negatively as younger borrowers continue to be stunted in terms of entering real adult life and achieving the traditional milestones. And while the CARES Act has delayed stress for many federal student loan borrowers, for those who have lost their jobs now due to COVID, the future may seem uncertain and even frightening. Finding out that debt collectors will be back by the droves certainly is not positive news, but you should not try to go it alone at this point.

If you are battling medical bills, unemployment, or serious financial issues, consult with a skilled attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options, especially if you are being harangued by debt collectors or if you have been served with a collections lawsuit. Dealing with legal action when the courts are more clogged than ever may seem like a daunting task, with the help of a good lawyer you may be surprised at the positive results. First, a reply should be made within 20 to 30 days of receipt of the lawsuit documents. Along with that, your attorney may wish to outline a defense for you to be made in court. This could include everything from asking the creditor or debt collections agency to prove standing to sue you to defending you against erroneous data or even fraud.

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 info@debtorprotectors.com.

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