What are the consequences of not filing for bankruptcy?

In Nebraska, not filing for bankruptcy can have several consequences. Without the protection offered by bankruptcy, creditors will continue to pursue the debtor for payment, including court judgments, wage garnishment, and liens on the debtor’s assets. In some cases, creditors may even be able to take the debtor’s assets, such as a home or car, to collect on the debt. In addition, if the debtor fails to pay the debt, it can remain on their credit report for up to ten years, making it difficult to obtain new credit. Moreover, debtors who do not file for bankruptcy may be exposed to criminal charges related to their debt. In Nebraska, failing to make payments on a debt or lying about debt could result in criminal charges of fraud or theft, including probation or jail time. Further, debtors who fail to file for bankruptcy may be liable for punitive damages if the court finds that the debtor acted deliberately or maliciously. Finally, not filing for bankruptcy can result in financial hardship. Without bankruptcy protection, the debtor may take a long time to pay off debt or may never pay it off, resulting in the collection of interest and other charges, creating an even bigger financial burden. Consequently, debtors should consider the long-term consequences of not filing for bankruptcy before deciding how to manage their debt.

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What are the consequences of not filing for bankruptcy?

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