Although 2020 began innocently enough, as spring approached, the US was thrown into a tailspin of concern. Citizens were left to worry about their health, that of their families, and to stress about abrupt financial problems brought on by unemployment and a long list of restrictions put into place to stop the spread of the pandemic. Unemployment was swift for tens of millions of unprepared workers, and while individuals were concerned about how they were going to pay the bills, many businesses began going under too due to indefinite closures.
Unfortunately, many consumers were forced to start using credit cards as an alternative form of income while out of work. And while some may have been able to rely on emergency funds and then hefty credit card limits for spending not only on the basics but medical debt too, the problem is that plastic gets maxed out quickly and creditors still want their money paid back.
Although creditors and debt collectors were shushed for a great part of 2020, with student loan deferments and moratoriums on evictions continuing through 2021, they are back in full swing now. And that means all those companies that were so quick to sue over ongoing delinquencies and defaults are back in action. For consumers with increased credit card debt and the unfortunate possibility of dealing with collection lawsuits too, the idea of going back to funding retirement accounts right now might seem completely out of the question. This is especially true for the unemployed.
If you are being sued by one or more creditors, make dealing with that a priority. It’s completely normal to want to push such problems under the rug, procrastinating out of the sheer unpleasantness of the task; however, most people do exactly that and find themselves burdened with default judgments. Such legal action may not seem like much to bother with if you feel like you have nothing to lose right now but the problem is that may not be the story for the next 20 years—and that’s how long a default judgment can stick with you as it is initially good for ten years and then can be extended for another decade.
By consulting with an attorney and responding to any lawsuit within 20 to 30 days, you may be able to avoid the repercussions of a default judgment, including wage garnishments, and levying of property and 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 email@example.com.