If You Simply Ignore The Creditor, What Is The Worst That Can Happen?

1. Continued Contact and Pressure: The creditor or a bill collector may continue collecting directly.

2. Ongoing Reporting on Credit: The activity generated by your interactions with the creditor or collector will continue to reflect on your credit report, thereby impacting your credit score, for seven (7) years from the date of the last activity. So, as long as the lender is trying to collect and/or you are interacting with them, the seven (7) years keeps renewing itself-extending your credit issues into the foreseeable future.

3. Continued Damage to Your Credit Score: Within the first year of this struggle, your credit score will look as bad or worse than bankruptcy. As a result, trying to avoid bankruptcy did not preserve your credit.

4. Possible Entry of a Judgment: The pressure does not stop there. The lender or collector may eventually sue you. If the lender sues you, and if a judge agrees you owe the money, the judge will enter a JUDGMENT. What does this mean for you?

a. A judgment is a major credit hit.

b. It is initially good for 10 years.

c. It is renewable/extendable for 10 more years ( potentially a twenty (20) year impact).

d. It remains active on your credit while it is being reported, so your credit score remains suppressed by the judgment.

e. The lender can go through the Sheriff's Department and have the Sheriff's Department inventory what you own. If you either (1) fail to claim "exemptions" in your property, or (2) own belongings that are worth enough, then the Sheriff is authorized to seize your assets. THERE ARE LIMITS ON WHAT YOU CAN PROTECT!