What happens if a debt settlement is not completed on time?

If a debt settlement is not completed on time in California, there may be several consequences. First, the creditor may pursue legal action to collect on the debt. This could include filing a lawsuit against the debtor and pursuing a court judgment, which would allow the creditor to garnish wages or bank accounts for repayment. Additionally, the failure to complete the debt settlement could impact the debtor’s credit report negatively, as missed or late payments would be reflected on their credit report for up to seven years. Additionally, the creditor might still report the debt as unpaid to credit bureaus and other third-party collections services. This would have an additional negative effect on the debtor’s credit score and make it difficult to obtain any kind of loan in the future. Therefore, it is important for debtors in California to complete the debt settlement on time and to take all other measures necessary to ensure that the debt is settled in full. If a debtor cannot afford to pay off the debt in full, they should contact the creditor and try to negotiate a payment plan that will allow them to make payments over time and avoid the aforementioned consequences.

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What happens if a debt settlement is not completed on time?

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