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What Happens if you Ignore a Debt Collection Agency

Nexa Collect

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. Possible Social Stigma : In some cases, debt collectors may contact relatives or neighbors in an attempt to reach you.

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You’re in Debt: 9 Terms to Know

The Kaplan Group

Credit Counselor. A credit counselor is certified and trained in consumer credit, money and debt management, and budgeting. Counselors can discuss your entire financial situation with you, and help you develop a plan to solve your money problems. Garnishment. Statute of Limitations.

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10 Common Questions About Bankruptcy

Debt Free Colorado

For ten years after filing for bankruptcy, lenders will be more reluctant to extend credit, and it may even be challenging to get employment. Those who are no longer able to pay their debts can, however, start over through a legal process. Spending money on short-term financial problems will harm your credit too much.