Default Judgments Threaten Your Future Finances for Twenty Years
If you have fallen on hard times financially, you may be reeling at how quickly your circumstances went from minor to catastrophic and have continued to weigh on you. Difficulty in your personal life may be accompanying this scenario too due to an unexpected event like the loss of your job or significant loss of hours at work, an illness in the family or a problem such as divorce—or you may have been involved in a serious motorcycle or car accident. The bottom line is that a lack of income means it becomes difficult to pay the bills, and if you have creditors after you—they will be a constant reminder.
Credit cards are one of the most commonly unpaid debts when consumers are under financial duress. And while creditors may have been courting you continually when times were good, the relationship changes quickly—and much for the worse—after you are a couple months late on payments. Collections activity can become even more aggressive if the original creditor sells off your account to a debt collection agency where servicers work on commission and are extremely motivated to see debts paid, even if that sometimes means negotiating debt settlements at mere pennies on the dollar.
It doesn’t take long for unpaid accounts to become marked delinquent, and if arrangements are not made that suit the creditor or debt collections agency, repercussions such as collections lawsuits may ensue. At that point, serious notice must be taken, and it is time to act, and respond, with the help of a skilled collections lawsuit attorney from a firm like Fitzgerald & Campbell, APLC.
Without a response and without your involvement in the case whatsoever, the judge will probably be quick to grant a default judgment against you. The consequences of this court action can be severe, resulting in notification of the judgment to your employer and loss of wages (up to 25 percent of disposable income in California), levying of bank accounts with very little notice, and seizure of property and possessions to be sold off by local law enforcement at auction.
For most consumers/debtors, the consequences of a judgment are to be avoided at all cost—although if you are judgment proof, there may be little a creditor or debt collector can do to collect. Keep in mind, however, that the judgment is good for ten years, and after that they can ask to have the judgment enlisted for another ten. So, before you push that collections lawsuit or judgment to the back of your mind for good, consider that it could be out there for at least twenty years.
If you are finding it difficult to pay your bills, or are being sued, or have judgments granted against you, contact us at Fitzgerald & Campbell, APLC. We can review your current situation and discuss your options with you, whether that means fighting in court, negotiating a settlement, filing for bankruptcy, or more. Our attorneys have decades of experience representing clients in all types of financial matters, and we are here to help you! Call us today for a free consultation at (855) 709-5788 or email us at firstname.lastname@example.org.
Posted in: Judgments