When you fall behind on your mortgage and car payments, or have substantial debt from medical bills or credit card expenses, you may be racking up debt faster than you can keep up with basic living expenses. At this point, creditors may start to call you and begin hounding you for payments. Some people may be wondering what happens if you decide not to pay off any of the debts and whether bankruptcy can help get rid of them. We discuss more in our blog below.
What Happens If I Do Not Pay Off My Debts?
When a person can no longer pay his or her bills, there can be several consequences
- Your debt may be sold to a collection agency
- Creditors will start contacting you
- Your home may be foreclosed or your car may be repossessed
- Your credit score may decrease and your credit history can take a hit
- Your debt can continue to grow with additional interest
- Your wages may be garnished
- You could be facing a collection lawsuit
Continuing to neglect your debt can only make the situation worse over time.
Can Bankruptcy Help Get Rid of My Debts?
Bankruptcy, if approved, really is the only way to walk away from debt or at least achieve financial freedom. Whether it means getting qualifying debts discharged in Chapter 7 or reorganizing your debts in a Chapter 13 repayment plan, the law provides debtors with options to help them move forward financially.
Trying to just walk away by not making the payment only does more harm than good in the long run. Our experienced bankruptcy attorneys can assist Kentucky residents with finding solutions to significant financial hardship.
Schedule a free consultation today.