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Debt Collection Agencies Become More Powerful with a Judgment

debt collection agencies
  • Jul 25 2018

In essence, debt is about numbers—cold hard cash. Banking and lending are emotionless exercises, based on the black and white of adding figures, examining credit reports, and assessing risk. If you have fallen into serious debt though, you are probably only too aware of the emotions accompanying such stress. You may have trouble sleeping, suffer from depression, and feel humiliated and isolated. Whether you have been crushed under the burden of student loans, suffered from a serious illness or had an accident, or lost your job, you are not alone in such challenges as so many consumers in the US struggle to pay the bills too after an unexpected life event.

Work to Solve Financial Issues Before the Lawsuit Arrives

If you know your debt issues are spiraling out of control and you cannot fix them without help, contact an experienced law firm like Fitzgerald & Campbell, APLC to review your case and help you explore your choices. Debt settlement may be an option, and with a skilled attorney negotiating, you may even be able to pay off debts at a fraction of the original debt owed. That is the best way to stop an even more complicated financial problem before it begins, as delinquencies and phone calls and letters haranguing you to pay up are one matter—but a collections lawsuit is another indeed.

On speaking with a collections lawsuit attorney, you may be surprised to find out that your best recourse is to reply to the summons and complaint, and show up in court. If you were not able to slow the chance for negative repercussions previously, working with your attorney to fight the collections lawsuit is critical to your future. Once a debt collections agency is asked to prove that they actually own the account and have the right to sue you—or are asked to provide all the paperwork regarding the account—they may fold quickly due to disorganization and a lack of a cooperation from the original creditor who sold them accounts in bulk volume ‘as is.’ There is usually still the chance to negotiate with the creditor even at that late hour.

Default Judgments Mean Big Headaches Financially

The key is to avoid having a default judgment granted against you in court. If you do not reply, and you are not there, chances are good that one will be granted automatically. Your debt goes from being an unsecured collections issue to one that is tied to the legal action of the judgment, allowing the creditor to take much more aggressive action toward you—and quickly. Their power is increased, and is usually felt initially through wage garnishments, if you have a job. Your employer would be alerted, which is bad enough, and then even worse—up to 25 percent of your disposable income can be taken out of each check to satisfy the judgment. The humiliation goes on if that doesn’t work, to include seizure of property to be sold at auction and levying of your financial accounts.

Contact Us for Help Now

If you are concerned about impending creditor lawsuits or fighting a default judgment, consult with Fitzgerald & Campbell, APLC as soon as possible. A solution can be found to help you through any of these issues, even if a judgment has already been granted.

Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more. Let us review your case and discuss what would work best for you. We are here to help! Call us today for a free consultation at (855) 709-5788 or email us at info@debtorprotectors.com.

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Posted in: Judgments