Bankruptcy law: What happens if I just don’t pay my debt?

Bankruptcy law: What happens if I just don’t pay my debt?

Ever think, “I’m just not going to pay that bill, I’m done!”? The thought of just walking away from it all sounds really nice. Who wouldn’t want to just not pay their bills? Unfortunately, creditors do care and aren’t likely to let such a decision slide. The only way Michigan residents may be able to really walk away from or reduce their debt obligations is turn to a bankruptcy law attorney for help.

Those who choose to just stop making payments may not see any significant consequences right away. Creditors may begin to call, seeking payment, and one’s credit rating may take a small hit. Doesn’t seem too bad, right?

After 60 or more days of not making payments, one’s creditors may pass the debt to a collection agency. If this happens, attempts to collect may seem to never stop. After roughly 180 days of non-payment, the collection agency may then sue for the balanced owed, which is bad for everyone. It may be possible for the debt to be sold to a debt buyer and eventually written off as a debt that is not gong to be paid. Again, sounds good, but this, too, is not without consequences.

Numerous Michigan residents have debts of some kind. Instead of waiting it out, hoping for the best and watching one’s credit score continually decline, there may be a better way to deal with debts that one cannot pay. A bankruptcy law attorney can review one’s situation and offer information on any available solutions.

Source: U.S. News & World Report, “What Happens if You Don’t Pay a Debt?“, Geoff Williams, April 3, 2018

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