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Collection Lawsuits & Default Judgments: Nearly Half of Americans Under Financial Duress

man holding credit card in front of laptop

As a viral pandemic shocked the world and left millions dead, the US was suddenly forced to impose restrictions, shutdowns, and lockdowns. While the idea was to keep everyone safe—and who knows what would have happened without such measures—the sudden changes caused massive financial problems for Americans. As businesses immediately felt the stress, upward of 50 million people were suddenly without jobs. For many, there was (and still is) a serious struggle to put food on the table and pay rent.

Almost half of Americans polled in recent research said that they are not retired and expect to continue having trouble reaching their extended financial goals. Close to half also expect that it will take several years to get back to where they were previous to COVID-19 restrictions. One in ten do not think they will ever get back to normal financially. And while many do think it is up to the government to help, the reality is that millions are having to deal with worse debt problems than ever.

Some consumers may have been able to cut down on their credit card usage during the pandemic, but if you were unemployed, you may have been forced to use your credit cards almost like a form of income to get by. Of course, the problem that arises later is that creditors and debt collection agencies want credit card debt paid off as soon as possible—and as agreed upon. If you are overwhelmed by credit card debt, contact a debt protection attorney as soon as possible to examine your options, and especially if you are being sued.

Over the past year, student loans have continued to play more of a larger conversation than ever. Previous to COVID-19, the student loan crisis was well underway, and with over 45 million borrowers still due to pay back more than $1.6 trillion, it is understandable that concerns would run higher than ever. And although the government stepped in to offer deferments for a large portion of federal student loan borrowers, what much of the US did not understand (unless they were directly affected) is that those deferments are only good for loans directly owned by the US government. All of the other borrowers were left out in the cold, aside from some minimal help at first, and while that has increased over the year, certainly nothing has been offered in comparison to the federal deferments.

If your private student loan is seriously delinquent or is going into default, this is another area where you may be worried about legal action taken against you. As with any collection lawsuit, it is critical to contact an attorney right away so that a default judgment is not granted against you. Personal student loan servicers are capable of extremely aggressive collections activities, not unlike that of a more conventional lender like a mortgage company. Speak with an attorney as soon as possible to avoid further ruin to your credit, along with the potential for loss of wages up to 25 percent of your disposable income in garnishments, seizure of private property to be sold at auction, and levying of bank 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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