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Collection Lawsuits: Unemployment Has Caused Huge Financial Problems

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As the economy begins to pick up again despite climbing numbers regarding COVID-19, for the tens of millions who were left unemployed beginning in spring of 2021, recovery is not always exactly speedy, even in the wake of unemployment, jobs picking up, and multiple stimulus checks. This is especially true for the many individuals who lost their health insurance.

Although COVID-19 does not discriminate, and unemployment reached every level, the service sector was hardest hit, along with younger workers who in many cases may have just started their first jobs, only just to lose them almost immediately. Not surprisingly, lower-income families have continued to be adversely affected and many report that they feel like it will take years to recover.

Other financial complications have figured into the devastation as well, especially since a large percentage of Americans are living paycheck to paycheck with little to no emergency fund. On top of that, they may have no resources to pay for any sort of emergency.

For consumers with credit cards, they may have turned into a form of alternative income during the challenges of COVID, but of course there is a serious problem in using credit cards to get by: the funds run out fast, and creditors still expect to be paid. For many, however, there was no question about what to do when faced by putting food on the table for their kids or running up a credit card bill—even with the potential of no income arriving to pay it off.

If you have been sued, speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible. While it is critical to reply to a credit card lawsuit and defend yourself, in the end, what you want to make sure of is that you fend off any possibility of a default judgment. Unfortunately, in California, this type of legal action can follow you around for as long as 20 years, with continued wage garnishing, seizure of personal property, or even loss of control over 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 issuesbankruptcy, 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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