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Default Judgment: The Creditor May Be Quick to Use Their New Financial Advantage

financial advantage
  • Dec 24 2018

Default judgments are the beginning of the end for consumer debt. How you got to this point and what you are supposed to do now though may be big questions marks, leaving you to wonder about the vulnerability of what little you do have left to spend. It may have been a quick road to financial depletion, and for all too many consumers in the US, illness is the catalyst for delinquencies that develop into collections lawsuits, default judgments—and often force them into bankruptcy too. It is easy to see why medical bills cause financial devastation, with charges for prescriptions, care, and procedures piling up, resulting in astronomical sums due in no time flat.

Other issues may have occurred too that caused creditors and debt collections agencies to take aggressive action against you. A car or motorcycle accident could have caused major injuries leaving you to heal and perhaps even challenged to adapt to long-term disability. Unemployment may be an issue—whether you were unable to go back to work or were laid off during company cut-backs. Divorce can be a precursor to serious money issues, along with other financial strains like massive student loan debt.

If you were unable to consult with a collections lawsuit attorney at the time you were served a summons and complaint, and you did not show up in court, a default judgment was probably granted against you. Ignoring the lawsuit is not the best course of action to take but ignoring a default judgment can have even worse consequences. If the creditor has not already begun pursuing the debt again after the judgment was granted, you may have time to stop repercussions before they begin. Your attorney may be able to negotiate a discounted settlement, or you may be eligible to file for bankruptcy—seeing most of your unsecured debt discharged within three to six months.

Without a resolution to the default judgment, the creditor is basically imbued with much greater power to pursue the debt, and almost immediately. This means that up to 25 percent of the disposable income in your paycheck could be garnished, your checking account could be frozen until the debt is satisfied, or valuables could be seized and sold off at auction. Do not delay if you are worried about the creditor or debt collections agency taking such action against you!

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