What happens if debtors cannot pay their debts?

If debtors cannot pay their debts in South Carolina, the creditor may file a lawsuit against them in court. The court may decide that the debtor must turn over certain assets to the creditor in order to pay off the debt. These assets may include property, money, or assets that the debtor owns. The court may also decide that the debtor should be held financially liable for the debt. If this happens, the court will order the debtor to pay the debt in full or may set up a payment plan for the debtor to pay off the debt over time. If the court decides that the debtor should be held financially liable for the debt, they may also order that the debtor’s wages be garnished, which means that a certain amount of the debtor’s wages are set aside and given to the creditor until the debt is paid off. The court may also decide that the debtor should be sent to prison if they cannot pay their debt. This is a last resort for creditors and is very rare and usually only occurs if the debtor refuses to make payments or tries to evade the creditor. In any case, debtors should seek legal advice if they are unable to pay their debt, as the court system has procedures in place to help them.

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What happens if debtors cannot pay their debts?

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