Default Judgments: Don't Let Them Be the Final Word
The gavel falls, the judge delivers a verdict – but what happens when the defendant in a debt collection case simply vanishes? This scenario, known as a default judgment, can leave creditors feeling frustrated and empty-handed. But fear not, there's still hope! US Collection Services is here to explain default judgments, the challenges they present, and the effective strategies we employ to navigate them. Understanding Default Judgments in Debt Collection A default judgment occurs when a debtor fails to respond to a lawsuit filed by a creditor for non-payment of a debt. This can happen for various reasons, from negligence to a deliberate attempt to avoid responsibility. When a default judgment is issued, the court rules in favor of the creditor, awarding them a monetary judgment for the outstanding debt, plus potential court costs and interest. Challenges Associated with Default Judgment Collections While a default judgment may seem like a victory for the creditor, collec