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Collections Lawsuits Occur as Financially Vulnerable Cannot Catch Up

  • Aug 31 2020

Prior to the COVID-19 pandemic, household debt had reached an all-time high of $14.3 trillion. Student loan debt had reached $1.64 trillion, and one of the hottest economic topics was how over 45 million borrowers would be able to pay back so many loans. You may have been struggling already to pay back credit-card debt, along with all the basics like paying for a place to live, a vehicle to drive, insurance, utilities, groceries—all the usual bills that come along with being an adult—and in many cases, taking care of a sizeable family too.

While worries of a viral pandemic sweeping the world took over the news, alerting us to growing numbers of individuals who had fallen sick or died, life continued to march on otherwise too. Unfortunately, this means that you may still have been forced to deal with other personal crises in the midst of radical lifestyle changes due to shutdowns, lockdowns, social distancing, and more.

You may have had to, or were already having to, deal with an illness—or you may have been in a car accident or experienced other trauma leaving you with injuries and long-term recuperation. Medical debt may have piled up, leaving you wondering if you should file for bankruptcy. Even worse, like millions of others in the US, you may have lost your job too. These are the unfortunate realities of the current economy, along with financial fall-out that could occur for some time.

If you are dealing with lack of income but numerous debts that need to be paid, and collections activities that seem to be growing in intensity, speak with a debt protection attorney from Fitzgerald & Campbell, APLC as soon as possible to explore your options, and create a strategy for getting back on track. In some cases, taking control of the interim may be as easy as calling creditors or debt collectors and asking for deferred or smaller payments either temporarily or for good.

You may be able to refinance student loans, fend off foreclosure of your home or repossession of your car, and gain some breathing room. While the automatic stay in bankruptcy allows this for the duration of the process, with unsecured debts discharged within three to six months in Chapter 7, you may not be ready to take such drastic measures; however, if you find yourself being served a collections lawsuit or worse, a default judgment granted against you, it is time to act quickly with the help of an experienced attorney.

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. Click here to schedule a free 30-minute consultation, or call us at (855) 709-5788, or email us at info@debtorprotectors.com.

Posted in: Collections lawsuit