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Default Judgments: Credit Card Companies Coming After Debtors Despite COVID-19 Woes

credit card companies
  • Oct 26 2020

If you have been struggling due to financial difficulties caused by the COVID-19 pandemic, it may give you little peace to know that you are not alone as tens of millions have become unemployed (while over 200,000 have died in the US from the sometimes deadly virus) and have few avenues left to pay the bills. Government checks and programs may have helped some, but chances are your bills are bigger than what a stimulus check will cover during this year of trials and tribulations.

Most credit card corporations and debt collection agencies refrained from communicating regarding delinquencies over the past months, and courts were closed. Lawsuits were placed on hold, process servers were not knocking on doors, and even many federal student loans were deferred through the end of the year through the CARES Act.

As restrictions have eased you may once again find yourself being barraged with calls and mail. Other debtors may not have been so lucky though throughout the COVID-19 pandemic as their wages may have continued to be garnished, or bank accounts levied. Not only that, as stimulus checks were distributed and deposited into checking accounts, some of those funds were garnished to satisfy debts, leading to quite an uproar. This can be part of the problem with allowing creditors to levy bank accounts as other funds, meant to be allocated as untouchable by creditors, are taken.

Such aggressive action is the result of a default judgment, brought on after loss to the creditor during the collections lawsuit. Currently, the best way to avoid such action is to deal with any lawsuits head-on, consulting with an experienced attorney from Fitzgerald & Campbell, APLC to reply to any creditors who may be pursuing legal action against you regarding debt. Generally (as outlined on the summons), you will have 20 to 30 days to respond. If you do not, a default judgment could be granted almost automatically. This is where wage garnishing comes into the picture. Your employer may be court-ordered to send as much as 25 percent of your disposable income to a creditor.

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: Judgments