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The Debt Hangover in 2021: Dealing with the Default Judgment

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2020 was hard on US citizens—to say the least—not to mention the human race altogether. Like millions of others, you too may have lost your job or experienced extensive cuts in hours and pay, all while trying to adapt to sudden restrictions and even complete shutdowns due to COVID-19. Unfortunately, before the viral pandemic even hit, household and consumer debt had reached historic highs quarter after quarter, prompting financial analysts to begin raising their eyebrows in growing concern.

Suddenly, along with juggling student loan debtmedical debtcredit card debt, and more, you may have found yourself in the unexpected and highly unpleasant position of trying to deal with unemployment and an ongoing list of threats regarding bills—from credit card notices to letters mentioning foreclosure—all accompanied by a viral pandemic, worries for family and friends, kids suddenly out of school and with too much time on their hands, and a complete transformation in societal norms. Like most, you may have discovered that all these changes were a lot to take in—and especially while suffering a severe financial hit.

With good reason, you may be further worried if you received notice of a collection lawsuit either before COVID-19, or just recently. Although debt collectors were on hold for months and the entire court system was delayed for a time, you may have just received word via a summons and complaint that you are being sued over a debt you may now barely remember. It is normal to feel stressed out and even helpless, tempted just to shove the problems under the rug and ignore them—but that is the worst thing you can do! Instead, speak with your attorney now, not only about replying to the lawsuit but launching a defense too. This could be so much easier than you imagined, and in fact the plaintiff may back off simply by discovering that you are going to fight back.

Take care of the collection lawsuit before you find yourself presented with a default judgment. Understandably, having to deal with a legal issue and prepare for the potential of going to court is intimidating. Without any action though, chances are good that the judge will quickly grant a default judgment against you—opening your financial life up to further upheaval in the form of garnished wages (up to 25 percent of your disposable income), seizure of valuable property, and unpredictable loss of control over your checking account.

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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