Collection Lawsuits: Why You Cannot Procrastinate After Being Served

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Although never pleasant, being served a summons and complaint may be a wake-up call regarding debt and legal action being taken against you. Have you recently found out that a creditor or debt collection agency is suing you? Usually this is a result of accruing debt not paid off due to a change in income or an illness (or both). Credit card debt is also one of the most common reasons for collection lawsuits in the US, and if they result in a default judgment, can stick around for a nightmarish 20 years in California.

Troubling times led to massive concerns over private students loan debt—and especially as the cumulative debt owed in the US by over 45 million borrowers has now managed to climb to a staggering $1.74 trillion. The student loan debt was already a serious crisis for federal borrowers, private borrowers, and presenting peril to the US economy before COVID-19 became an issue.

As soon as it became clear that the viral pandemic would be causing massive changes for Americans in terms of finances, the CARES Act allowed for long-term deferments for federal borrowers. This was not true for private student loan borrowers though, who were left to fend for themselves for the most part. Now, many student loan service borrowers are jumping on the bandwagon to offer more options for deferments and relief, but for many that could certainly be too little, too late.

Previous to COVID-19, a list of typical culprits tended to cause large amounts of credit card debt, from the obvious temptation to give in and overspend, to using credit for medical bills and other expenses. As 2020 stretched on, however, and millions lost their jobs, credit cards came into play as a source of alternative income for far too many people. Not only that, for the multitudes of consumers wondering how they were going to get by in the future—or what the future would even hold—there was a big question mark as to how such credit cards would get paid off later, or if ever.

As the US kicks back into action with some semblance of that much talked about ‘normalcy’ returning, creditors and debt collection agencies are back out there delivering collection lawsuits too. If you have been served, do not delay in contacting an experienced attorney from Fitzgerald & Campbell, APLC as soon as possible. Time is of the essence considering there is usually 20 to 30 days allotted for an answer. And although the temptation may be great to push all the bills, and the summons and complaint too, under the rug, that is the worst thing you can do.

In working with a good collections lawsuit lawyer, you can get back on track financially as soon as possible, and also avoid the potential for a default judgment—leaving you open to new complications like garnishment of wages (up to 25 percent of your disposable income in California)), loss of property, and even the levying of checking 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 info@debtorprotectors.com.

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