Prior to the worldwide pandemic which changed the world as we know it for quite some time, credit card debt, household debt, and consumer debt, were reaching historical highs quarter after quarter. With the advent of COVID-19, however, it was as if everything stopped—with the exception of unemployment, overloaded hospitals, and millions relegated to the isolation of their own homes with ensuing restrictions, lockdowns, and complete shutdowns of many areas.
It was quite a shock for most people to suddenly find everything about daily life interrupted—from the inability to go to work or do normal fun activities like go out to eat or go to a movie. Credit card debt and usage began to slow down in terms of shopping, taking vacations, and general spending; however, for millions of individuals in the US, this was suddenly the only form of currency left.
Keeping in mind that a large percentage of Americans still live paycheck to paycheck and have very little to fall back on in terms of emergency funds, nothing could have been worse to experience unexpected unemployment, with very little chance of finding something new in the short term. Not only that, many older workers would later have difficulty finding re-entry into careers they may have been working toward or industries they were involved in for decades.
While available credit card balances were a godsend to many at first, helping to keep groceries on the table as well as pay for other essentials necessary to survive, that situation could quickly turn into a financial crisis. This became especially true as creditors and debt collectors came back to life around the fall of 2020, back to chasing consumers for money owed, despite the financial chaos of so many US citizens. And while patience and sympathy during COVID-19 was offered by so many different types of lenders, creditors, and others who might normally be aggressive about collecting debts, eventually their goal was to get back in the saddle and start collecting payments again.
Ongoing delinquencies can lead to collection lawsuits, unfortunately. The process usually begins with service of legal documents, to include a summons and complaint. In most cases, if you are being sued by a creditor or debt collector, you will have 20 to 30 days to respond before you run the risk of having a default judgment granted against you almost immediately. Speak with an attorney as soon as possible to reply to the lawsuit and launch a defense—helping you to avoid wage garnishments, seizure of property, and loss of control over financial accounts.
Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. 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 (844) 431-3851, or email us at info@debtorprotectors.com.