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No Income Means More Delinquencies & Default Judgments

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COVID-19 continues on despite vaccines and concerted efforts by US citizens to avoid catching the potentially deadly germ. Finances are in disarray for many individuals too, with recent news showing that 40 percent of the Americans left unemployed have been without work for over six and a half months.

For so many consumers in the US, debt was already becoming an untenable issue. Both consumer and household debt were reaching new highs every quarter previous to the viral pandemic, leaving many already stressed to pay the mortgages, student loan debtcredit card debtauto loan debt, and more. As tens of millions were thrown into unemployment with almost no warning at all, the ability to pay back any debts at all came to an abrupt halt. Still, an alarming number of citizens are having trouble paying even the essential bills needed to keep food on the table—and 18 million kids in danger of going hungry.

Unfortunately, previous debts now continue to catch up with everyone—and as creditors and debt collection agencies are back in action, more collections lawsuits are being served than ever. If you have recently received a summons or complaint, speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to respond to the lawsuit and discuss the potential for a defense in court.

In most cases you will have 20 to 30 days to respond to a collection lawsuit, and while far too many debtors just let such legal action slide, the repercussions can be completely devastating to your finances later on. While in California a default judgment is granted for ten years, keep in mind that if the debt is still not satisfied at that point, they can have it extended for another decade. Once you have a job or anything worth taking, the creditor can garnish your wages (up to 25 percent of your disposable income), freeze your checking account, and even send local law enforcement to seize valuable assets to be sold at public auction.

Don’t try to go it alone if you are being sued! In these times especially, it is important to reach out for experienced legal help so that you can set yourself up for financial freedom in the future, saying goodbye to harassing letters and phone calls from creditors.

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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