How Long Can You Go Without Paying Your Bills?
Being in debt is not the nicest thing in the world. It can get you down and it can even cause medical problems such as stress, depression and sickness. A lot of people who owe money to creditors worry that they will be thrown in jail but this very rarely happens. This doesn’t mean it won’t happen: Here are a few notable examples of when you can end up in jail for money problems.
So how long can you go without paying your bills? Creditors will usually exhaust all possible methods to get money out of you before taking legal action and this can last up to a year or more. They will send you letters and hound you by phone. Don’t ignore the problem completely: they will eventually file a dispute with the courts and this could lead to a garnishment on your account and the addition of very high court fees. A friend of mine saw their $8,000 judgment double in court with the addition of legal fees and court costs!
The safest amount of time to go without paying your bills is two to three months. Your creditors will begin to request the money in this time via phone or letter but there will be leeway. During this time, you should take the opportunity to consider your options.
If you can, try to set up repayment plans with your creditors; after all, they will usually accept a small payment you can afford each month rather than nothing at all. One of my friends, Cal, pays $10 a month on a $100,000 medical debt. She told me that in Texas, they can’t take you to court if you’re making payments, so she sends them ten bucks a months, every month (and she’s been doing that for the last 8 years!).
If you cannot afford to do this, then your only option might be to declare yourself bankrupt. This will clear any outstanding debts you owe and put a serious dent in your credit score. If you choose bankruptcy, then you will find it very difficult to open any new bank accounts or get credit. You should only consider this option if you have no other choice.
Don’t hide away because the problem will not disappear on its own. Take action: pay a small amount, file for bankruptcy, or judgment proof your assets. There are three things you can be certain of in life: taxes, death, and tenacious bill collectors.
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