Students with outstanding student loans, homeowners with unpaid mortgages, and people who exceeded their credit limit while shopping all know the fear of accruing debt. If you’ve heard the horror stories of property being seized , debtors being arrested, and people going bankrupt trying to pay off their debts, and you may be terrified that it might happen to you. However, bankruptcy isn’t necessarily a bad thing; in fact, it can result in your debts being completely discharged, giving you a fresh start to your financial future. Secondly, while defaulting on your loan payments will have consequences, you can get rid of those fears of going to jail. Debtors prison has been a thing of the past for roughly 100 years. However, there are a few things that you should be concerned about if you don’t pay your debts, including the following:
- Debt collection agencies will never leave you alone. They will keep calling you and asking for their money, even in the middle of the night. The hope is that you will eventually break down and give them what they want.
- Future credit will be hurt. Your credit score will drop significantly the longer you don’t pay your debts, and you will probably have a lot of trouble taking out large loans in the future.
- Job prospects could be hurt. If your credit score shows unpaid debts, that tells potential employers that you are not a reliable individual, and you may have trouble finding a good job.
Keep all of this in mind when you’re faced with unpaid debt, and talk with a Dallas bankruptcy lawyer to discuss your options.