What are the consequences of not paying a debt?

If a person in California does not pay a debt, the creditor can take legal action to collect the debt. If a creditor chooses to file a lawsuit, the court can enter a judgment against the debtor, allowing the creditor to collect the debt in a variety of ways. One of the ways creditors can collect a debt is through wage garnishment, in which the debtor’s wages are garnished—or taken—by the creditor, and applied to the debt. This can be a very difficult consequence for debtors, as it could mean having less money to support themselves. In addition to wage garnishment, a debtor may also face property liens. This means that the creditor can put a lien—or a legal claim—on the debtor’s property, like their car or home. This could prevent them from selling the property until the debt is paid, which could be a serious burden. Finally, the debtor may also face a negative effect on their credit score. When the debt is reported to the credit bureaus, it could stay on their credit report for up to seven years. This could make it difficult or impossible to get additional loans or lines of credit, impacting their future financial standing. For these reasons, it is in the best interests of debtors to pay their debts in a timely and responsible manner. If a debtor is unable to pay their debt, they should consult a financial advisor or debt collection defense lawyer to help them explore possible options.

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What are the consequences of not paying a debt?

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