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Why You Want to Avoid a Default Judgment

  • Nov 24 2016

One thing to keep in mind when being served with a lawsuit by a creditor is that it is absolutely in your best interest to respond to the summons and complaint. While the entire process seems stressful and like something that would be easier not to deal with in the short run, should you—like the majority of debtors—decide to skip over filing a response, it means that you are just making the situation that much worse as the creditor continues to keep the upper hand and works diligently to get their money back, with the help of the court system. And without responding and making them prove that the amount they are demanding from you is even correct, you could possibly even be responsible for a sum in default judgment that is incorrect.
defautl91438672 Why You Want to Avoid a Default Judgment

As you allow yourself to be absent from the process, you open yourself up for much greater financial vulnerability, as well as headache. With the default judgment, you could be looking forward to unpleasantness in the future such as garnishment of wages. This means you could be losing a pretty significant portion of money that you probably actually need during each pay period, with up to 25% in disposable income garnished immediately when your paycheck arrives. This is court-ordered so your employer must comply, as well as send the garnished money to the creditor.

With the default judgment, you may also want to anticipate possible garnishment of your bank account. And while both of those processes seem intrusive and very possibly may be depleting money you do not necessarily have to give back each month, it does mean that you are in the process of paying back the debt in a structured manner.

When you find yourself in this position, the best solution is to consult with an attorney from a law firm like Fitzgerald & Campbell, APLC that has experience in advising clients in matters like this. When a default judgment is put into place, you have other options like petitioning the court to set the judgment aside for a variety of reasons, citing everything from fraud to indicating why it might be considered void. You can also look into settling the debt with a payment plan that works better for you than garnishment, although at this point your hopes of negotiating the debt down (definitely an option before debtors reach the point of a judgment) are most likely futile. Bankruptcy is also an option that many debtors consider as the financial situation becomes quite serious, and can also serve as a strong solution for staving off the judgment and reorganizing your debts.

The bottom line for dealing with your default judgment is that while you let the response go, now you need to get organized and not waste any time if you are hoping to see it eliminated. Contact Fitzgerald & Campbell, APLC to discuss your options, whether you want to try and negotiate a different payment plan, see the judgment eliminated, or perhaps even file bankruptcy. Our attorneys have decades of experience practicing in these areas, and we are here to help you!

Call us today for a free consultation at (844) 366-8693, or email us at info@debtorprotectors.com.

Posted in: Credit Card Lawsuits, Debt Collections