Court Judgments: You Lose When You Don’t Speak Up for Yourself!
Nearly every aspect of finances has to do with your taking action and then watching the results–and no one wants to see that be in the form of court judgments. As you begin to accrue credit, you act in purchasing a car or a home—and agreeing to pay back what may be sizable loans. When you take out credit cards, shopping for the best interest rates, bonus points, travel miles, and more, you are acting, along with working hard to pay back your balances. And if you fall into serious debt, there is no time more important for acting! Letting such issues ‘ride’ could end very badly, leading to even worse terrible financial repercussions.
Most debt crises in the US on the personal level occur due to unexpected events, and not the good kind. Automobile accidents are a common example; in fact, just one serious car wreck or motorcycle crash can be devastating physically, emotionally—financially. The bills pile up rapidly, and the amounts owed may be so astronomical there is absolutely no way you could ever hope to pay off all the creditors and collection agencies calling.
As delinquencies continue to escalate, you may have trouble. And although you may be stymied as to why a large corporation would waste time on suing you when you have nothing to give, the reality may be that you are faced with a collections lawsuit delivered by a deputy or private process server. Here, you are also facing a true crossroads, and the direction you take could have a serious impact on your financial life for years.
The collections lawsuit will almost always state that you have 20 to 30 days to respond. In this time, you can consult with a collections lawsuit attorney and review your options; most importantly though it is critical to respond to the lawsuit as well as outlining a defense if possible. In the end, you may even end up negotiating with the creditor and paying off the debt at a substantially lower sum, or it may be in your better interest to file for bankruptcy.
Not acting at all though could lead you into some of the worst financial circumstances you could experience. If a default judgment is granted against you, this means the creditor suddenly has exponentially more power in working to see their debt satisfied. And they can launch much more aggressive collections efforts almost immediately. Wage garnishment can be one of the most difficult repercussions as your employer is alerted to your financial difficulties—which can be potentially embarrassing, if not downright humiliating—and two, the creditor can garnish up to 25 percent of your disposable income in California. If such an exercise does not yield the payments they expected, or if you do not have a job, the creditor may seize property via local law enforcement, and have it sold at public auction to satisfy the debt. Financial accounts may be frozen also, with little to no notice.
Our attorneys at Fitzgerald & Campbell, APLC 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! Click here to schedule a free 30-minute consultation, call us at (855) 709-5788, or email us at firstname.lastname@example.org.
Posted in: Judgments