A common question that people considering bankruptcy have, is what will happen if they don’t pay back their debt. There is a time frame limiting the ability of a creditor to pursue the collection of a debt. That time frame is in between the time of default and the expiration of the statute of limitations.

After plenty of phone calls and threatening letters, your creditor will have to go to court and obtain a judgment against you. A judgment is simply the official decision of a court at the completion of a lawsuit. If in favor of your creditor, it can be thought of as a court order to pay your debt.

The first step to obtaining a judgment is filing a lawsuit. If a creditor has filed a lawsuit, you will receive notice. It is a legal requirement that you are served with paperwork notifying you of the hearing time and location. This is commonly known as a “summons”.

In the hearing, the judge will decide if the creditor should be allowed to collect the debt. If the debtor fails to appear, the judge has no choice but to decide in favor of the creditor and a default judgment will be issued against you.

If the court rules in favor of the creditor, the creditor then has the right to pursue collection of the debt in question. At this point, the creditor will most likely attempt to collect the debt from you voluntarily. If you do not voluntarily pay back your debt, the creditor will proceed with collecting the debt through other means. This could include requesting a wage garnishment, a levy on the debtor’s bank accounts, and/or a lien on the debtor’s property.

One thing to remember is that this takes time. The time period from your initial summons to collection of debt, is normally several months. All current and future actions by creditors to collect debt will cease immediately once your bankruptcy petition is filed. While I do not recommend waiting until the very last minute to file, you have the time to make an educated decision about your current financial situation, and what you want your future situation to look like.

Many experts believe that we may be headed for another recession. Don’t enter a second recession with piles of debts. I can counsel you on your debts. I am sure that I can be of assistance to you, a family member or a friend as we all know someone experiencing trouble these days even if we are not experiencing our own financial troubles. Please do not hesitate to make contact with me. I emphasize courteous and discrete consultations packed with plenty of information. The life impact of meeting with me in person will be unforgettable. You will enjoy a new peace of mind and a fresh hope for the future with a new roadmap for financial success that we develop together. You can email my scheduler through our website for your free 30 minute consultation at www.washingtonbankruptcy.com or e-mail directly at [email protected]. To schedule immediately, we can be reached at 253-383-1001 M-Th 9am-5:45pm and Friday 9am – 12pm.