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

If a debt settlement is not completed on time, it can have serious consequences for the debtor. The creditor may take legal action, resulting in a lawsuit. This could result in a judgment against the debtor, meaning the creditor has the right to take their property or garnish their wages in order to pay the debt. In extreme cases, the debtor may even end up in jail if they are unable to pay the debt. In New Hampshire, debtors may be able to negotiate a payment plan with their creditors in order to reach an agreement on the repayment of a debt. If this agreement is not met and the settlement is not completed on time, the creditor might file a collections action against the debtor. This is a formal legal procedure that could result in a court order for the debtor to make payments to the creditor. In some cases, the debtor may also be subject to penalties or fees if the debt is not settled on time. The creditor may be able to add interest to the amount due, and may also be able to send the debt to a collection agency. If this happens, the debtor could suffer from damaged credit as well as increased financial stress. No matter the situation, the consequences of not completing a debt settlement on time can be serious if debtors do not take action to address their debt. It is important for debtors to make sure they understand all of the terms of the agreement and to make sure they uphold their end of the bargain in order to avoid legal action or other serious repercussions.

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

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