Most of us had never experienced anything like 2020. With both health and finances at the forefront, the human race was and has continued to be in peril from a worldwide pandemic with sweeping repercussions. Prior to being in the clutches of the coronavirus, the US was already showing historical highs in household and consumer debt, quarter after quarter; however, lenders were continuing to lend and consumers were continuing to spend their money, as well as using credit.
For most of 2020, creditors and debt collection agencies were quieted. For the most part, everyone seemed sympathetic. The government deferred millions of federal student loans, although private student loan borrowers were completely left in the cold—at the mercy of private student loan servicers. As time went on though, even with new variants coming along in the face of vaccines, the world started to open up again. This meant that creditors and debt collectors went back to work, busier than ever.
While previously, temptation to over-spend and money mismanagement may have been at the heart of a large percentage of debt, most debt loads amassed during COVID were due to much more desperate measures—related to illness and unemployment. There is a strong connection between other problems and credit card debt as it is so often used in times of difficulty as an alternate form of income. Unfortunately, the ‘funds’ run out very quickly and creditors do expect to see the debts satisfied.
Medical expenses have a way of seeping into everything. This is due to extremely high sums that are amassed quickly, and the uninsured are not the only ones having trouble with medical debt. Even with insurance, there can be a host of reasons why patients are left with overwhelming debt that in some cases could never possibly be paid off in a lifetime.
If you are being sued over medical debt, contact an attorney as soon as possible to file a response within 20 to 30 days, and begin outlining a defense. It is in your best interest to take care of legal action as soon as possible to avoid the potential for a default judgment. If one is granted against you, there could be months or even years of headaches in dealing with wage garnishments, seizure of property, and loss of control of your financial accounts.
Contact Fitzgerald & Campbell, APLC now. Let us review your case and discuss what would work best for you. We are here to help! Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more. Click here to schedule a free 30-minute consultation, or call us at (844) 431-3851, or email us at email@example.com.