I saw on the news this morning that the jobs report due out today will show increased hiring numbers for December over November. This is good news for the economy overall. However, the effects of the last several years will continue to haunt us for a very long time. Many people have been so down for so long that I fear a spike in collections activity, foreclosure activity and other actions that will impede the newly employed and newly hopeful from getting back on their feet.
The reason for my fear is that, when a person is uncollectible, the threat of garnishment, bank levy, and property seizure is negligible. There’s nothing to grab. BUT, once the creditors see regular bank deposits by skip trace or other means, or there are wages to garnish, collection firms and lawyers will start to see a potential bonanza. This will likely start a slew of collection lawsuits and attempts to collect on long-dormant judgments. That’s not even looking at the thousands of mortgages that are underwater and/or in foreclosure.
Many actions that creditors can take (legal or not) can threaten those new jobs too. Calls at work tend to irritate employers and unnerve the newly employed.
So….now that you have or or looking for that new opportunity for work, consider how to put your financial house in order. It may be that your creditors will start their new year off by trying to collect. Just remember, there are many ways to protect yourself from predatory actions by creditors. You should always talk to a lawyer before making decisions that could have long lasting effects.