Court Judgments: Do Not Let Your Guard Down Now
Most of us have imagined an apocalypse occurring at one time or another, usually due to pop literature or movie-like scenarios that we have seen in horror flicks or sci-fi thrillers—but not in the form of a viral pandemic called COVID-19. Health issues have been the first and foremost concern for everyone, with millions testing positive and hundreds of thousands dying, but certainly it is impossible to ignore the financial ramifications after shut-downs, lockdowns, and the loss of over 35 million jobs. Unfortunately, if you were already in debt, you may have still been (or still are) recovering from a serious personal crisis like an illness, injuries from a major car accident, family issues like caretaking for an aging parent—or a separation or a divorce.
With the advent of stimulus checks and programs like the CARES Act deferring federal student loans, Americans have had some modicum of relief—along with a break from debt collectors calling constantly. As cities begin to consider dipping their toes back in to opening up again though, you may have noticed that debt collectors have resumed collections activities with impressive vigor. This could include delivery of lawsuits to your door also. If so, despite what may feel like a more relaxed ‘new normal’ in staying home more and perhaps even worrying about debts less, do not procrastinate in calling a skilled collections lawsuit attorney to help you file an answer and defend you too if possible.
If you have lost your job and have few assets left, you may feel as if there is no reason to worry about anyone having a default judgment against you; however, keep in mind that this type of action—stemming usually from a lack of response or presence in court—lasts for ten years in California, and can be expanded to another ten. In most cases, it is definitely not worth it to leave yourself so vulnerable to the potential of wage garnishments (meaning the creditor or debt collections agency can take up to 25 percent of your disposable income), freezing of checking accounts, and levying of property—for possibly 20 years as the first ten year judgment can then be extended to another ten.
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