An article published yesterday in the Sun-Sentinel "Companies filing more lawsuits over credit card debt in South Florida" really spells out what I tell potential clients every day;
if you ignore it - you're done - they will sue you.
People are frustrated, they simply can't pay and assume that collectors can call them all they want but if I don't have it there's not much they can really do. This sort of assumption makes a bad situation even worse. Creditors and their collection companies have come to the realization that they now have to sue individuals to get their attention, which they are doing and it's unfortunate.
And while the recession has increased the number of debtors, companies are also getting much more aggressive about collecting.
Small claims courts in Broward and Palm Beach counties are reporting a spike in the number of cases against debtors, who typically owe less than $4,000.00.
Some judges say they are handling more than 25 such cases a week, compared to just a handful a few years ago. On a recent Thursday in Judge Gregory Keyser's small claims courtroom in West Palm Beach, more than half of the 50 pre-trial hearings were credit card cases. In Broward County, Judge Steven Deluca said a review of a recent Monday docket showed, he had 49 cases and 73 percent of them are credit card cases.
And here's another example; Collection Company's such as Asset Acceptance, a Michigan-based company that buys debt from credit card issuers, filed only about 250 cases in Broward County during 2007 and in 2010 it filed 938 cases, more than three times the amount.
Additionally, not all debt cases go to small claims court. Debtors need to know that when a debt is valued at more than $5,000 it goes to civil court, where legal representation is especially needed. Filing a lawsuit doesn't always guarantee collection, but when defendants don't show up or can't pay, which is usually the case, the company gets a judgment.
So what if I have a Judgment against me, I can't pay, it doesn't mean anything, right? Wrong! If a judgment is entered against you by a court, your wages, your bank account and other assets may be taken from you to pay the judgment. And in Florida, a judgment is good for 20 years after it is filed with the clerk which means that the person or company who obtained the judgment can collect on that judgment for up to 20 years or until it is fully paid.
If you are one of the many individuals struggling to make your payments, don't ignore it - it's not just going away! Seek the advice of
an experienced debt relief attorney - know your options and understand your rights. Most attorneys, like me, will offer you a free initial consultation. So you have nothing to lose - but everything to gain.