MISSING A PAYMENT Those who have unpaid debts have options such as working out agreements to pay back debts over time, taking out new loans to pay back existing debts, or declaring bankruptcy. Bankruptcy is a formal court proceeding, which is very complicated. Your assets – the things that you own – may be taken (except for certain protected items), and most of your debts are canceled. Certain debts including debts for fraud, tax debts, debts not reported to the bankruptcy court, debts for intentional or malicious harm, debts that are imposed as part of a sentence for criminal and/or traffic conduct, child support and debts for school loans are not canceled. However, the simple fact is that, if a payment is missed, the buyer can be sued. Many contracts provide that if one payment is missed, the entire debt becomes immediately due and payable. If not answered, the debtor loses by default. If the debtor loses in court, a judgment will be entered against, him or her, which means that income can be garnished (that is, money can be taken to pay the debt from sources other than the debtor; i.e., employer, bank, etc.) or other actions can be taken to collect the money. Interest is added to the amount of the judgment. There are limits to starting a lawsuit or being sued. Illinois laws create deadlines, called statutes of limitation, for starting lawsuits or making claims. Some deadlines are very short. A lawyer can advise as to what time limit applies. Note: This information was prepared as a public service by the ISBA. Every effort has been made to provide accurate information at the time of publication. For the most current information, please consult your lawyer. John Delaney is a member of the ISBA and Madison County Bar Association. If you need a lawyer... John Delaney, Attorney at Law 618-259-0500 [email protected]
Posted on: Thu, 20 Nov 2014 22:31:38 +0000
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