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Collections Lawsuits: Sometimes When You Least Expect It

collections lawsuits
  • Dec 26 2018

Consumer debt in the US continues to rise, but as lenders continue to lend, some analysts predict a financial apocalypse on the horizon, along with a many more collections lawsuits to come. Households today carry a cumulative national total of over $1 trillion in credit card debt—and revolving credit continues to grow at a rate of almost five percent. And while you may or may not be surprised to find out how much debt everyone else is in, statistics serving to let you know you aren’t alone may mean very little when it feels like creditors are ready to beat down your door with demands for payment.

You may have had a very real knock at the door, however, from a private process server or the sheriff, delivering a summons and complaint outlining a collections lawsuit. You may be delinquent in payments for the home or car, but collections lawsuits are also extremely common from credit-card corporations hoping to recoup their losses by threatening with legal action or collecting later with a default judgment granted against you. Whether or not you are going to be sued for looming credit card debt is always questionable.

Some companies operate like clockwork with sending out lawsuits and are very adept at what they do, employing attorneys who are used to most debtors not filing a reply or showing up to court—meaning that a default or court judgment is almost automatic. Others may sell off your account right after it is charged off and let the debt collections agency do as they will with it, which may include filing a lawsuit or just calling and writing you incessantly until the statute of limitations has expired on the debt. If you have no money, you may wonder why they are even wasting their time suing you; however, some accounts are sold off in such volume, there is little research. Many companies do weigh out whether it is worth it to take the time, money, and effort to lodge a lawsuit against you though.

If you have been served, don’t wait to contact an attorney. Act quickly so that an effective response can be filed (although if you need to file a late response, your attorney may be able to assist in pushing one through), along with a strong defense if that is the best route in your case. Your attorney may also suggest negotiating with the creditor if a defense is not possible, meaning that you can hope for a significantly discounted payoff amount.

Without any attention to the collections lawsuit though you may be looking at serious repercussions from a default judgment, including wage garnishments, lack of access to financial accounts when the bank freezes them per court orders on behalf of the creditor, and even loss of property after it is taken and sold out from under you at auction.

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: Collections lawsuit