What will happen if I neglect my car and credit card payments?

Question

I'm going to credit counseling because i'm an irresponsible zilch. I just wanted to know what will happen if I neglect my payments. As far as collection agency calling me, what else could be possibly and legally could happen to me?

i don't own any property, the only property that i have is the car and 2 credit cards.

Answer 1

They will sue you and get a judgment against you. Then they can seize any property you own and seize your bank account. They can eventually sell the property you own....which means if you own a home, you could very well lose it. Your credit will be in the toilet if it's not already. If you have a job, they will garnish your wages or if you get a job, they will. This can go on for years. Of course, the car, they would repossess.

Answer 2

Well, your car will be repossessed. You will have your name added to a Credit REporting agency, so that when you apply for other loans/credit your name will come up as a bad risk.

At worst - you can be made bankrupt - which is NOT an easy way out of not paying your debts.

Your Creditworthiness will effect you all your life. If you get bad credit now, when the time comes and you want to buy a house (for example) you probably won't get a loan.

But if, as you say, you're irresponsible, and can't see that your own sense of honour should make you pay your debts, then perhaps you need the kick in the pants that the consequences of not paying your loans will give you.

Answer 3

Well technically they can't do anything to you legally besides harass you for the next 7 years about your neglected bills, but even that they can't call you between the hours of 10pm and 7am. As far as your car goes, they'll give you about 2 months of no paying and then they'll come and repossess it... it really knocks your credit hard.