Ever fail to pay a debt even though one has income coming in? It is okay; it happens. Sometimes, financial obligations get to be too much. What one does after the fact matters. For Illinois residents who find themselves in this position, Chapter 13 may offer an affordable debt solution.
Having to decide what bills are going to get paid in any given month can be a tough decision, but it is a decision that numerous people have to make. Sometimes, the money to meet all of one’s debt obligations just isn’t there. This can leave a person wondering what would happen if they just stopped paying certain debts altogether.
If one fails to pay a debt, creditors may soon start calling, seeking payment. If the debt still is not paid or a solution worked out, eventually, the account may be sent to a collection agency or sold to a debt buyer. At the end of the day, creditors just want to try and recover their losses. This does not mean one is off the hook. Debt buyers and collection agencies can hound people for years, seeking payment, or even pursue legal action in an effort to collect.
Not only does failing or refusing to pay a debt often result in frequent creditor harassment, it can harm a person’s credit rating, which can only make the situation worse in the long run. In short, it does not solve the problem. For Illinois residents who have money coming in — just not enough — a Chapter 13 bankruptcy, if approved in court, can offer an affordable repayment plan. This means creditors will get paid all or part of what they are due over the course of three to five years, in monthly installments that work with one’s income level. An experienced bankruptcy attorney can offer more information about this debt solution.
Source: U.S. News & World Report, “What Happens if You Don’t Pay a Debt?“, Geoff Williams, April 3, 2018