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Collection Lawsuits & Default Judgments Loom Large Due to Unemployment

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As US citizens continue to arrive in hospitals with COVID-19 symptoms, financial issues abound for millions who have been lost their jobs or been otherwise affected by the viral pandemic. In the beginning, most of us were worried about our health. Quickly though, it became obvious that along with concerns about contracting the coronavirus, many were going to suffer economically. The signs were apparent quickly too as unemployment soared to historic highs.

As shutdowns, lockdowns, and restrictions continued, there was an escalation of problems for workers—including closures of daycares. Recent news states that thousands of women were forced to leave the workforce to care for children at home. And while some were fortunate enough to be able to work from home, obviously many service workers had to quit or were out of a job already due to cutbacks and businesses closing altogether.

“We have an absolute crisis as it relates to the caregiving burden that women largely carry, that includes child care, but also includes caring for family members as well,” said Sharmili Majmudar, Executive Vice President of Policy and Organizational Impact at Women Employed.

Over half of the workforce today is made up of women—and since 2020, five million are unemployed.

“The village has been stripped away and even if you can afford to pay, the daycare you used to use is closed and it just threw everything into a tailspin,” said Colleen Curtis, Chief Community Officer of The Mom Project, a job site for moms returning to work. “Per usual, moms are the backbone of how we’ve muscled through this. They’ve been there for their families, they’ve been there for their companies. They’ve gotten the job done anyway they could.”

Financial crises are of course also compounded by the fact that so many men are out of jobs too, leaving countless households with absolutely no income—and adults and children literally going hungry. Debt grows, and as creditors and debt collection agencies come back to life, lawsuits are being served from credit card companies, for examples, clogging the courts—and with default judgments being quickly granted against defendants who do not reply, and do not show up to court.

If you are being sued, it is critical that you speak with an attorney as soon as possible to avoid the repercussions of a default judgment—to include wage garnishing, seizure of assets, and levying of bank accounts.

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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