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Collections Lawsuits: Beware of Using Alternate Income During Pandemic

alternate income
  • Sep 30 2020

With the possible exception of medical researchers or scientists, no one could have seen it coming: a viral pandemic affecting the world, and impacting the lives of millions within the US. Amidst serious health concerns that could not be ignored—especially as they were accompanied by previously unheard-of shutdowns and lockdowns—suddenly most of us were experiencing serious financial concerns too. There was very little time to prepare for the fall-out financially either, as businesses began cutting employee hours and laying people off almost immediately.

You may have been affected by the virus, hospitalized, or forced to isolate at home with an unpredictable recuperation period. You may have been stunned to find out that you lost your job. Or both. The pandemic has caused incredible challenges for many, and while it is somewhat comforting to know you are not alone, it can also be challenging to find the proper coping mechanisms as well as an avenue for new cash flow in the face of mounting medical debt.

Unfortunately, that available credit limit you may have been avoiding using could have suddenly become your only alternate source of income. While necessary in lieu of any other options at the time, unemployment plus high credit card debt can be a true recipe for disaster, ending in collection lawsuits and default judgments. Creditors are certainly not strangers to this type of behavior and in obvious times of widespread financial duress, you may discover that credit card line you were relying on has been cut heavily.

For the most part, debt collectors have been sympathetic to the plight of debtors around the US, and even quieted due to government mandates through the beginning of the pandemic; however, as everyone returns to business, creditors and debt collection agencies are getting back into the swing with mailing letters regarding delinquent balances and accelerating collections activities via repetitive calling.

If you have maxed your credit cards out and now have no income to pay them off, it is better to consult with a debt collection agency before you find yourself opening the door to a private process server or a deputy bearing a summons and complaint with your name on it. If you have not reached that point, take time to examine your options. While you may be considering filing for bankruptcy to relieve yourself of credit card bills and other unsecured debt, work with your attorney to exhaust all other options first—beginning with negotiating.

If you have run out of time though and are at the point where you need skilled legal advice and help to answer a lawsuit from a credit card company (or other creditor), consult with a skilled collections lawsuit attorney from Fitzgerald & Campbell, APLC. Procrastinating or failure to answer could result in an almost automatic default judgment being granted by the judge. If you are still employed, this means your wages could be garnished—with up to 25 percent of your disposable income going to satisfy the debt. Property can also be levied and sold off at public auction. Along with having your checking account frozen, none of these consequences are pleasant or easy to deal with and should be avoided.

Contact us now so one of our experienced student loan debt attorneys can review your case and discuss all the available options with you. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (855) 709-5788, or email us at info@debtorprotectors.com.

 

Posted in: Collections lawsuit