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Credit Card Debt & Lawsuits: Climate is Ripe for Negotiating

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As millions of Americans find the opportunity to get vaccinated against COVID-19 and restrictions are beginning to be lifted in the US in many areas, the financial devastation is still being uncovered. Despite deferments on many federal student loans, filing and paying on income taxes, moratoriums on evictions, stimulus checks, and more, many are still struggling due to ongoing unemployment and loss of hours. Unfortunately, many businesses have gone under too—leaving noticeable closings in retail areas, as well as restaurants that did not survive the viral pandemic.

If you were substantially affected during the worst of the viral pandemic, you may be worried about how to get your bounce back financially; more so, however, there may be legal action to tend to immediately. If a private process server or deputy has knocked on your door or met you at work recently to drop off a summons and complaint (it’s an unpleasant business, but also important so you know what type of action is being taken against you), it’s time to contact an experienced attorney from a firm like Fitzgerald & Campbell, APLC as soon as possible.

Even if you think you may be immune to the major repercussions of a collection lawsuit, consider what could be happening in your life in the next two decades. This is important because if you fail to deal with a collections lawsuit, almost automatically a default judgment will be granted. This is good for ten years in California and may result in garnished wages, loss of property to be sold at public auction, and loss of control over your checking account too. Not only that, if not satisfied, the default judgment can be extended for another ten years.

This is an unusually difficult time for so many US citizens in terms of health, finances, and time needed to caretake for family and friends who are or have been sick, as well as mourn so many who passed away due to losing the battle with coronavirus; however, this is also a very good time to negotiate with creditors and debt collection companies who have had a very difficult time getting paid on debts lately. This makes them much more amenable to negotiating lump-sum payments to satisfy debts, as well as reorganization of payment schedules and even some without interest, along with better terms for refinancing.

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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