What happens if I default on a debt repayment plan?

If you default on a debt repayment plan in Nevada, your creditor can take legal action to recover the debt. This may include filing a lawsuit, sending your account to a collections agency, or garnishing your wages. If a creditor sues you, they must file the suit in a Nevada court, give you official notice, and wait until the court has issued a judgment against you. If the creditor wins the lawsuit, they can collect the debt through garnishment or a lien on your property. If you default on a debt repayment plan, the creditor can also send your account to a collection agency. Collection agencies are allowed to contact you by phone, mail, and email to try to collect the debt. If the collection agency sues you, they must follow the same rules of filing in a Nevada court, giving proper notice, and receiving a judgment. If a creditor obtains a judgment against you, they can garnish your wages or place a lien on your property. Wage garnishment means that the creditor can take a portion of the money that you make through your job. This is deducted from your paycheck until the debt is paid in full. A lien gives a creditor the right to attach any money or property that you own until the debt is paid off. Although defaulting on a debt repayment plan can have serious consequences, Consumer Debt Defense Law in Nevada is designed to protect consumers from predatory and unfair practices. If you feel like a creditor is not following the law, you can contact the Nevada Attorney General’s Office for help.

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