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

If a debt settlement is not completed within the agreed-upon timeframe, the creditor can take legal action against the borrower. The creditor may choose to take the debtor to court in order to seek a judgment for the amount owed. In most cases, if the court rules in the creditor’s favor, they can garnish wages and place a lien against the debtor’s property. Furthermore, the debtor may risk having their credit score and credit report permanently damaged. In Delaware, debt collection laws protect both creditors and debtors, providing a legal course of action to seek repayment if the terms of the agreement are not met. The Delaware Fair Debt Collection Practices Act states that creditors cannot harass, threaten, or abuse debtors in their attempt to collect payment. If a debt settlement is not completed on time, it is recommended that the debtor seek the assistance of a qualified attorney to protect their rights. The attorney can help the debtor negotiate with the creditor and represent them in court if necessary. They can also assist with filing for bankruptcy if the debt cannot be repaid or the terms of the agreement have been violated.

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

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