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Credit Card Companies and Private Student Loan Servicers May Be Ready to Sue

credit card companies
  • Feb 26 2019

It often seems like being in debt is just the American way. While some balances on credit cards and student loans are normal, finances can spiral out of control much faster than you may imagine, especially when there is an unexpected event such as a divorce or major family issue like an illness, unemployment, or an accident. In fact, medical bills are the number one reason for bankruptcy filings nationwide.

If you have been losing track of paying for your credit card or your private student loan, the creditor(s) could take swift action to sue, putting you at risk of a default judgment being granted against you if there is no response to the action. While a collections lawsuit is definitely something to be concerned with, a default judgment is much worse; creditors with a judgment against a debtor are able to garnish paychecks for up to 25 percent of your income, seize and sell property or valuable assets at public auction, or freeze any checking or savings accounts that are in your or your spouse’s name. A default judgment can be reversed with a motion to vacate in special cases, but it is much better to deal with the situation before it gets that far, as this does not always apply.

The further into delinquency you are, the greater your chances of being served with a collection lawsuit. If you have a summons and complaint in hand, do not delay in consulting with a skilled collections lawsuit attorney as quickly as possible to formulate a response. Whether you are looking to form a proper defense against the lawsuit in court or simply want to negotiate and get the entire situation resolved quickly in paying a discounted lump sum, consulting with a lawyer ahead of time is the best way to achieve the desired outcome.

If you are concerned about impending creditor lawsuits or fighting a default judgment, consult with an experienced law firm like 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.

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Posted in: Credit Card Debt