What happens if I don’t pay a debt in full?

If you don’t pay a debt in full in California, the creditor will likely take legal action against you. This could include taking you to court and obtaining a judgment from the judge. After this judgment is issued, creditors can begin to collect the debt from you using a variety of collection methods. These can include taking money out of your bank account, garnishing your wages, or seizing your property. Under California consumer debt defense laws, you may have the option of filing for Chapter 7 or Chapter 13 bankruptcy. Both of these forms of bankruptcy will involve you filing a petition to the court and the court having oversight over your assets. Chapter 7 bankruptcy involves liquidation of some of your assets in order to pay off the debt while Chapter 13 involves an approved repayment plan. Your best option if you can’t pay a debt in full is to speak to an attorney who specializes in consumer debt defense law. They can help you understand the best way to handle the situation in order to protect your rights and interests. You may also be able to negotiate a repayment plan with the creditor or debt collector that allows you to pay a smaller amount than what is owed. Finally, you should always keep records of all communication with a creditor or debt collector. This can help protect you from any improper actions.

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What happens if I don’t pay a debt in full?

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