Many Americans Already Mired in Debt Before COVID-19

author by Gregory Mark Fitzgerald on Apr. 06, 2021

Bankruptcy & Debt Collection Bankruptcy & Debt  Credit & Debt 

Summary: This article discusses the hardship people and consumers have undergone through out the COVID-19 Pandemic.

It would be nice to think that prior to 2020, most Americans were just settled into their comfortable lives and careers, happily sailing along with their finances firmly under control; however, that was simply not the case—and especially as consumer and household debt levels continued to nail historical highs every single quarter. Debt was already becoming troublesome–and COVID was a very serious complication, both in terms of health and finances.

Financial analysts worried a fall was imminent back then, that a bubble was about to burst again—but in light of the devastation caused for both health and finances in early 2020 (and still going), some credit card debt and student loan burdens were nothing compared to worrying about dying or suddenly having no job—or no career—at all.

For months, you may have found yourself putting everything else on the back burner while dealing with shutdowns, lockdowns, worries about your own health, family members, friends, and basically…the unknown. Even as the viral pandemic still presents a threat, in the light of vaccines and re-openings, creditors are also right back into business too. They expect to see debts satisfied; however, this could be a very good time to negotiate if you are in a position to pay off some debts in cash.

The first step is to speak with an experienced debt protection attorney about how to go about getting your financial health back in order. If you are able to come up with the cash to negotiate any of your debts down—even if that means taking a small loan from a family member—that could mean saving yourself further years of headache and accumulating interest. You could also be fending off future collection lawsuits or default judgments.

If you have already found out you are being sued though, the playing field is much different. Time is of the essence in terms of replying to any legal action. In most cases, upon being served, you will also be notified of the amount of time you have to reply. This is usually 20 to 30 days, and that should be considered a critical deadline. Without answering at all, you are basically indicating that you have no plans for defending yourself or even trying to discuss the debt with a credit or debt collection agency.

In the face of a default judgment, you could be further burdened with wage garnishing (up to 25 percent of your disposable income), loss of property upon seizure by local law enforcement, or levying of bank accounts with full cooperation of your bank.

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 issuesbankruptcy, 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

Legal Articles Additional Disclaimer is not a law firm and does not offer legal advice. Content posted on is the sole responsibility of the person from whom such content originated and is not reviewed or commented on by The application of law to any set of facts is a highly specialized skill, practiced by lawyers and often dependent on jurisdiction. Content on the site of a legal nature may or may not be accurate for a particular state or jurisdiction and may largely depend on specific circumstances surrounding individual cases, which may or may not be consistent with your circumstances or may no longer be up-to-date to the extent that laws have changed since posting. Legal articles therefore are for review as general research and for use in helping to gauge a lawyer's expertise on a matter. If you are seeking specific legal advice, recommends that you contact a lawyer to review your specific issues. See's full Terms of Use for more information.


Use of this website constitutes acceptance of’s Terms of Use, Email, Phone, & Text Message and Privacy Policies.