![]() ![]() Lower priority billsĪlthough it’s important to pay all of your outstanding debts and monthly bills in full and on time, it is safer to push off payments for credit cards, personal and student loans, medical debts and subscription services. Other court-ordered debts include court judgment debt and criminal justice debt. The Office of Child Support Enforcement can withhold your income and retirement, set liens on your property, intercept a tax refund or levy your bank accounts. Parents who owe child support, for example, are legally obligated to keep making payments. In some cases, you could even go to jail for not paying. That includes your home or property, your bank accounts and your wages. If your creditors take you to court for unpaid debts and the judge rules in their favor, your assets could be seized immediately in order to repay them. While your rights vary by state, some options could include reinstating the contract, paying the full remaining amount due or even filing for bankruptcy. ![]() However, there may be a way to get your car back after it’s been repossessed. After your car is sold, often for far less than it’s worth, you could be on the hook for the remaining amount left unpaid on your loan or the early termination charge on your lease. You could lose your only method of transportation to work without even being notified in advance, as creditors are not legally required to notify you. If you don’t pay your auto loan or insurance bills on time, your car could be repossessed after only one or two missed payments, while letting your insurance lapse could lead to being arrested or having your license suspended. Get in touch with your utility companies to learn about available options for relief, such as reduced rates and energy savings programs Auto loan and insurance You have the right to dispute the termination of services, request a deferred payment plan and seek assistance from emergency assistance programs for low income households.Īdditionally, you can contact the consumer division of your state utility commission to learn more about your rights regarding any billing issues. Your access to water, electricity, gas and other utilities could be disconnected after only one missed payment. You can also check with the United States Department of Housing and Urban Development (HUD) for assistance in keeping up with mortgage payments and avoiding foreclosure. You’ll have to pay back those funds eventually, but the pause in payments can help you get through a period of hardship. Ask your lender for a mortgage forbearance, which allows you to skip mortgage payments for a period of time. There are ways to be proactive in delaying or fighting a foreclosure, and you may even be able to negotiate the amount and frequency of mortgage payments. If you own your home and can’t pay your mortgage, you could face foreclosure or lose your home. If you’re a renter, take the time to learn the steps to appealing an eviction notice, some possible lines of defense and the options that may be available to you, such as negotiating with your landlord. These four types of debts are classified by the National Consumer Law Center (NCLC) as high priority, as their non-payment could immediately harm you and your family: Mortgage or rentĮviction from your home can be very swift if you can’t pay rent on time, while foreclosure can happen even without a court hearing in some states if you miss enough mortgage payments. Not paying your utility bills could result in your inability to keep the lights on or stay warm at night, and ignoring court-ordered debts gives creditors the right to seize almost everything you own. Ignoring your housing, auto loan or insurance bills could mean losing access to essential transportation or even safe housing. ![]() If a financial institution can’t get their payment by other means, they may turn to litigation.īefore paying smaller bills, you should always prioritize your basic needs first. If you have a secured loan or credit card, the lender may seize any assets you put up as collateral, such as your car, home or bank account funds. Late payments can remain on your credit report for up to seven years, dragging down your credit score. Your internet service provider or utility company may stop service to your account. This is typically the first action that’s taken when you are delinquent on a credit card payment, loan payment or other bill. ![]() Here’s what could happen if you don’t pay your bills: However, knowing the consequences of missing payments can motivate you to make a plan of action. High priority bills to prioritize firstĮvery dollar counts when you’re faced with a growing mountain of bills, but at some point, your payment cycle might sound similar to Sisyphus pushing a boulder up a hill.What happens if you don’t pay your bills. ![]()
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