What are the consequences of not paying a debt?

The consequences of not paying a debt in Florida are significant. In Florida, when a debt goes unpaid, the creditor may sue the debtor in court. If the creditor wins the court case, the court may issue a judgment against the debtor which may include the amount owed, legal fees, and interest. The creditor may then use a collection defense law to enforce the judgment. This can take the form of a garnishment, where wages are withheld from the debtor’s paycheck, or a bank levy, which can be used to take money out of the debtor’s bank account. A collection defense law may also allow the creditor to seize and sell the debtor’s property. This could include property such as cars, boats, furniture, or other assets. The proceeds from the sale of the property go to the creditor. In addition to possible legal action, nonpayment of a debt may have a negative impact on the debtor’s credit score, making it more difficult for them to obtain credit in the future. It is also important to note that a debt or judgment does not simply go away. In Florida, a judgment may be renewed every 20 years. This means that a judgment can remain on the debtor’s record for a long time, damaging their credit score for an extended period. As a result, it is important to take paying debts seriously. If a debtor cannot pay the debt, it is important to speak with the creditor and negotiate terms that are affordable for the debtor. This can help avoid the severe consequences of not paying a debt.

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What are the consequences of not paying a debt?

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