Credit Card Companies and Private Student Loan Servicers May Be Ready to Sue
Summary: While there are distinct differences in how credit card companies and private student loan servicers typically operate, they are similar in that they may serve a delinquent debtor with a lawsuit at any time.
"If you have been losing track of paying for your credit card or your private student loan, the creditor(s) could take swift action to sue, putting you at risk of a default judgment being granted against you if there is no response to the action. While a collections lawsuit is definitely something to be concerned with, a default judgment is much worse; creditors with a judgment against a debtor are able to garnish paychecks for up to 25 percent of your income, seize and sell property or valuable assets at public auction, or freeze any checking or savings accounts that are in your or your spouse’s name."
Read the entire article on the official Fitzgerald & Campbell, APLC blog.
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