To address a spike in the number of default judgments against consumers who are sued for unpaid debts, an organization in Wisconsin that is dedicated to helping low-income residents of the state get access to legal services has released a new resource that helps consumers respond and file answers to debt collection suits.
LIFT Wisconsin has added a Consumer Debt Resource to its Legal Tune Up tool, which helps consumers with a number of different legal issues. Now, along with receiving assistance to reinstate driver’s licenses, remove criminal and eviction records, and help with child support, consumers can also receive assistance when sued for unpaid debts.
About 61% of debt collection lawsuits filed in Wisconsin small claims courts end up in default judgments, according to a published report. That figure has doubled in the past three years. Only 10% of consumers have someone represent them in a debt collection case in the state, according to the report. As many as one-in-five residents in Wisconsin have a debt in collections.
The Consumer Debt Resource will help consumers who are sued respond to lawsuits. Among the services it offers are:
- Provides user-friendly digital access to a Legal Tune Up and self-help tools
- Sets up text reminders for upcoming court dates
- Auto-fills legal forms for court filings with the appropriate county
- Fills out and sends letters to creditors to stop debt collection harassment
“This new addition to the LegalTuneUp tool will be a game changer for the thousands who are saddled with debt but cannot afford the assistance of an attorney to help them resolve the claims,” said LIFT Wisconsin Executive Director Erica Nelson. “This tool navigates an otherwise intimidating process, putting power back in the hands of the people so they can achieve greater economic security.”
