Court Judgments: Not the End of the Road
Although it might sometimes seem like you fell deeply into debt overnight, that is rarely the case–and especially if you find yourself with one or more court judgments granted against you eventually. The process of falling into debt has many steps, and usually occurs over many months or years. Credit card debt is one of the most common problems, and if yours are all charged up to the limit (assuming you may have several) with delinquencies or defaults imminent, you may feel embarrassed as well as helpless to find a solution. That’s understandable when there simply isn’t the income to pay the debts creditors and debt collectors so badly want to see satisfied.
Illness & Accidents Often Lead to Big Financial Problems
Medical problems are often a precursor to more serious financial duress; in fact, they are the number one reason people file for bankruptcy. Health insurance or not, the bills can quickly careen out of control and eat through even the most well thought out savings plans. Unemployment may be an issue too, especially if you have been forced to take time off to recuperate or heal from an accident. Without a steady income to rely on, like so many others, you may have been forced to live on borrowed time financially in using credit cards. Once you have run your cards up to the max and can’t make the minimum payments, collections activity will probably become continual—and fierce. It is best to begin working with a debt protection attorney at that point, to avoid the potential for a collections lawsuit.
Delinquencies May Result in Collections Lawsuits
Without legal protection or the filing of a response, the collections lawsuit can turn into an ongoing financial hassle (many may agree that nightmare is a better term). An experienced attorney will not only be able to review your case and help you examine your options for getting out of debt and getting your life back on track, but also for submitting a response that makes it clear you have legal representation and will fight the case if necessary.
This is also the time to request that the creditor or debt collection agency proves they have standing to sue over the account, as well as asking them to provide comprehensive documentation for the account, starting from the time you signed on. Simply asking them to go to the effort of completing a few simple requirements may seem like too much trouble, especially considering they could sue many other debtors who would not respond or put up a fight at all. There is also a good chance that the party suing you may not be able to produce the requested paperwork because they don’t have it and the original creditor is not cooperative in supplying any information.
Default Judgments Result in More Aggressive Collections Activity
If you fail to file a response, a default judgment will likely be granted against you. This means the creditor can move forward quickly with much more aggressive collections activity for satisfying the debt; however, with the help of a skilled default judgment attorney from a firm like Fitzgerald & Campbell, APLC, you can still take control of your finances at the last hour. Even as you face having your paychecks garnished, valuables seized, and financial accounts frozen—the judgment can be dealt with, whether through fighting the lawsuit or settling the debt. The outcome for these options depends, respectively, on what type of excuse you had for not filing a response or whether you have the cash for a lump sum payout (or perhaps monthly installments). There is also the possibility that you may be eligible to file for Chapter 7 bankruptcy and not only see all collections activities cease but also eliminate the collections lawsuit and/or judgment as the debts are discharged within three to six months.
Contact Us for Help!
The bottom line is that if you are struggling with your finances and creditors and debt collection agencies are employing every intimidation tactic possible despite your not having the income to pay them—you can find help in consulting with an experienced law firm like Fitzgerald & Campbell, APLC. Our attorneys have decades of experience representing clients in all types of consumer rights matters, and we are here to help you! Call us today for a free consultation at (855) 709-5788 or email us at email@example.com.
Posted in: Judgments