Know Your Rights

Government Shut-Down Can Cause an Increase in Debt Collection Activity

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

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