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What Happens if you Ignore a Debt Collection Agency

Nexa Collect

Legal Action : The creditor or collection agency may file a lawsuit against you to recover the debt. If you ignore this or fail to defend yourself in court, a default judgment may be issued against you. This can lead to wage garnishment, bank levies, or liens against your property.

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You’re in Debt: 9 Terms to Know

The Kaplan Group

You may also be responsible for paying the costs of the creditor hiring a collection agency or legal costs. Credit Counselor. A credit counselor is certified and trained in consumer credit, money and debt management, and budgeting. A judgment is the official result of a lawsuit in court. Garnishment.

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10 Common Questions About Bankruptcy

Debt Free Colorado

Are My Creditors capable of appealing My Bankruptcy? For ten years after filing for bankruptcy, lenders will be more reluctant to extend credit, and it may even be challenging to get employment. What Can’t Bankruptcy Do? What Should I Consider Before Filing for Bankruptcy? What Debts are Discharged in Bankruptcy?