Government Shut-Down Can Cause an Increase in Debt Collection Activity
Posted: Wednesday, October 9, 2013
Perhaps the federal government in its current shut-down did not
realize how much they were helping the debt
collection industry. It looks as though Congress may have
given collectors a big boost. Certainly, it was hardly a
consideration when decisions were made to shut down the government,
but it is beginning to appear that the current situation will have
the effect of causing defaults on credit obligations, and a
corresponding increase in collections.
At this time, roughly 800,000 federal workers have been put on
furlough - meaning their work and pay has been suspended.
Most of these government employees do not have such high paying
jobs that they don't need to worry about getting paychecks for a
period of time. Inevitably, bills will be missed and loans
will be defaulted. Surely, these federal employees have
credit card payments, home loans, rents, and student loans just
like the rest of us.
At SmithMarco, P.C. we offer a free review of your
situation to discuss how to handle the predicament of having a loss
of income due to the shut-down of the federal government.
Federal employees that are on furlough and are unable to make
payments to their creditors because of lost income can expect their
creditors to turn these debts over to debt collection agencies and
attorneys to pursue these delinquencies. If you are a federal
employee cut off from your job and your income, you have rights
with respect to how you can deal with mounting debt obligations and
the companies that pursue them. Contact us for a free consultation.