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The Default Judgment: Creditors Become More Aggressive

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Medical debt is at the top of the list of worries for most Americans these days. While such a concern may have already been mounting prior to 2020, undeniably these debts have reached crisis level for millions who were stricken with the coronavirus. Along with that, the student loan crisis continues to loom—now having risen to over $1.74 trillion for over 45 million borrowers. 

Typically, one type of debt leads to others too. For instance, medical debt may have been incurred—and especially during COVID—after loss of health insurance or interruption due to unemployment or loss of full-time status. With income in question though, that may lead to use of credit cards. As an alternative form of income, credit cards can be a slippery slope. Paying for everything from groceries to co-pays and medical procedures, credit card balances are maxed out quickly, and then, creditors expect to be paid. Sympathy runs out very fast! 

If you are being sued over a medical debt, a private student loan, credit card debt, or other financial issues, speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible. While it is important to seek legal advice if you feel like debt is spiraling out of control, the situation grows much more urgent after you have been served with a summons and complaint. Usually delivered by a private process server or a deputy sheriff, the summons will outline how long you have to reply. Generally 20 to 30 days is allowed, plus you must get started on planning a defense with your attorney. 

Without any attention to the collection lawsuit, much longer-term repercussions are possible. Even if you are feeling like you have nothing left to give, or lose, keep in mind that if you do not attend to a collection lawsuit, a default judgment could be granted almost automatically. Afterward, the plaintiff (the creditor or debt collection agency) suddenly has a lot more power in terms of collection activity. 

If you are working, your wages could be garnished up to 25 percent of your disposable income. Your employer does not have any choice but to send that amount to the creditor, as it is court ordered. This applies to your bank also, as they must in most cases cooperate in freezing your bank account until the debt is satisfied. Local law enforcement could also seize private property to be sold at public auction. 

Contact Fitzgerald & Campbell, APLC now. Let us review your case and discuss what would work best for you. We are here to help! Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more. Click here to schedule a free 30-minute consultation, or call us at (844) 431-3851, or email us at

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