What happens if I default on a debt repayment plan?

Defaulting on a debt repayment plan can have serious consequences. In Washington, the Consumer Debt Defense Law provides consumers with rights and protections if they are unable to pay their debts. If you default on a debt repayment plan, creditors may take legal action against you to collect the debt. The legal action can include filing a lawsuit against you, attempting to garnish your wages, attempting to freeze your bank accounts, or filing a lien against any property you own. The law also places restrictions on the actions creditors can take to collect debts from consumers. For example, creditors cannot threaten physical harm, make false statements, or take any action that violates federal or state laws. If you are sued for a debt, it is important to respond to the court summons. If you do not, a default judgment may be entered against you. This could result in your wages or assets being garnished, or your credit score being negatively impacted. It is important to remember that if you are having difficulty making payments, there are options available to you that may help mitigate the consequences of defaulting on a debt repayment plan. You may be able to negotiate with creditors or work out a payment plan. Additionally, you should consider speaking with an attorney or consulting a credit counseling service to explore all of your available options.

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What happens if I default on a debt repayment plan?

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