Court Judgments May Increase as Over 100 Million Contend with Credit Card Delinquencies
Millions of US citizens have found sudden unemployment to be a bitter pill to swallow, especially as fear of a deadly virus has swept the nation—causing not only over 100,000 deaths at this time of writing, but illness for over two million patients suffering from a range of symptoms—many of which are extremely frightening and have long-term health consequences.
Debt issues were certainly nothing new to millions in the US previous to COVID-19, whether looking at overall consumer debt, household debt, or narrowing the numbers down further to mortgages, student loans, auto, medical, and credit card debt. If you were concerned about your finances before mid-spring, most likely you are much more worried now though, and especially if you are now forced to seek unemployment like over 35 million others in the US.
There could be numerous other layers adding to financial distress too, from an illness or a serious injury, separation or divorce, to burdensome student loans (currently stressing many of the over 45 million borrowers contributing to the cumulative $1.6 trillion debt). Undoubtedly, both collections lawsuits and default judgments will escalate as credit card debt continues to mount for 110 million consumers—most of whom had already been struggling with such woes for one to two years, according to recent news.
“People in their 20s, 30s, and 40s have a lot more credit card debt than older adults. About 2/3 of millennials and Gen Xers are carrying credit card debt. It’s a little over half of baby boomers. My best advice here– if you’re struggling with credit card debt, especially if you’ve lost your job or had a cut in your income, speak up,” said Ted Rossman, CreditCards.com Industry Analyst, in a recent interview.
If you were served with a collections lawsuit previously to the COVID-19 pandemic, or if you have been recently notified of such legal action, consult with a skilled attorney as soon as possible. It is critical to deal with any collections lawsuit before it develops further into a default judgment and associated wage garnishments, property seizures, or levying of bank accounts.
While filing for bankruptcy may be the best choice for some, in other cases you may want to speak with your attorney about replying to and defending a collection lawsuit or fighting a default judgment with a motion to vacate. Contact Fitzgerald & Campbell, APLC now. Let us review your case and discuss what would work best for you. We are here to help! Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more.
Posted in: Judgments