Posted by srailawoffice In Bankruptcy June 28, 2021 0 Comment

If debt is not properly dealt with, it can easily evolve from a bill you have to pay to an extremely challenging legal action. If you are having financial difficulties, you should understand that more than ever you are not alone. Beginning with the COVID-19 shutdown and lockdowns, millions of individuals lost their job and had hours cut – but even worse, large numbers also became sick or even died.

The Financial Impact of Coronavirus Pandemic

There is no doubt that 2020 and ongoing through 2021 have resulted in devastating circumstances, both financially and health wise. Unfortunately, many Americans were already just treading water in terms of debt even before COVID-19.

However, as the pandemic swept the nation, the first concern was the massive, cumulative student loan debt, now hovering at more than $1.74 trillion. Although federal student loan borrowers heard some good news, those indebted to private student loan services continued to sink in debt with no relief in sight.

Other financial concerns include credit card debts, medical bills and unpaid mortgage and rent.

Creditors’ Response to Debtors’ Pain

While come creditors and credit card agencies tend to bluff and not pursue legal action for months, others may be extremely litigious, as well as adept in navigating the legal system. While being harassed with phone calls and letters from creditors can be a headache to deal with as you face financial challenges, the situation can become much more critical if you find yourself in default and also being sued.

As such, it is important to take all debt situations seriously, but especially if you are being sued. You need to be wary of time limits within legal action. In most cases, you generally have 20 to 30 days to respond and let the party suing you (and the court) know that you are dealing with the legal situation by either preparing a defense to willing to attempt to negotiate. The best course of action is to immediately speak with an attorney to avoid having a default judgment granted against you.

Bankruptcy May Be the Best Option

Depending on the specific facts of your situation, a consult with an experienced Central Valley bankruptcy attorney may reveal that your best option may be to file for bankruptcy. If this in fact is the best course of action for you, your attorney will walk you through the steps and help you navigate the bankruptcy proceedings to eventually be able to get out of debt and avoid any additional legal recourse by creditors.

Call an Experienced Central Valley Bankruptcy Attorney

If you are considering Chapter 7 bankruptcy, it is in your best interest to consult with an experienced bankruptcy attorney to help you learn your legal rights and options, especially with respect to Chapter 7 bankruptcy.

For more information or to schedule a complimentary consultation with Central Valley bankruptcy attorney Gurjit Srai, please call 209-323-5558, or complete our online form.

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