When it became apparent that COVID-19 was going to pose significant health threats worldwide, the spotlight was on the coronavirus in terms of symptoms, mass hospitalization, death tolls, and the stress placed on families, caregivers, and medical professionals everywhere. It did not take long, however, to realize that a major focus would be placed on finances. Sadly, this was due not just to astronomical medical debt quickly accruing during COVID treatments, but also because of massive unemployment and businesses forced to close their shutters around the country, whether temporarily or permanently.
Although historically medical debt has been the number one reason for filing for bankruptcy, it quickly became apparent that this would continue as patients were presented with bills they could never hope to pay. Student loan debt was on the radar immediately too, with federal student loan borrowers receiving generous deferments that have continued through to January of 2022, but private student loan borrowers left on the periphery to deal with private servicers.
Credit card debt, while down as a whole with consumers contained in their homes, increased exponentially for consumers attempting merely to survive in the face of job layoffs or significant cuts to hours at work, loss of health insurance, and more; in fact, for some, open credit card limits suddenly functioned as alternative forms of income. The problem with this type of ‘income’ though is that it runs out exceedingly fast, and the end result is creditors and debt collectors waiting to see their debts satisfied.
One of the only good things about COVID debt is that creditors are more likely to be sympathetic right now and offer pauses on payments and reorganization of debt and payments. If you are being sued by a credit card corporation, consult with an experienced credit card debt attorney as soon as possible to explore your options. Negotiating may be a great option too. Even if you are being sued by a creditor, they may be extremely willing to discuss a payoff at a highly discounted rate.
No matter what, the best course of action is to seek legal expertise and deal with mounting debt or any collection lawsuits. Don’t let procrastination result in a default judgment being granted against you, causing further complications like wage garnishment, seizure of personal property, and loss over control of financial 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 firstname.lastname@example.org.