Recently, I had the opportunity to sit in a courtroom for a full morning while a judge was presented with several case of people defaulting on their debt. It was not a real happy scene to say the least. Honestly, it was quite depressing.
I was there with a client. This elderly client had tried everything to address the debt she owed and, with this one particular debtor and attorney, no one would listen. She had nothing to give them. Her income was not there to satisfy the collection. She had no assets of any worth that would appease their need to replace the debt she owed. In short, they refused to listen to her position but she still lost.
Several were in that same courtroom in the same situation as my client, but they had more zeroes behind their debt. In each one of those cases, they too lost.
I was not there with my client for any other reason than to emotionally support her. She owed the debt, knew it, wished she had the money to pay, and knew she would likely lose. However, we were hoping that they might drop their pursuit or not show up. They did not. She also wanted the judge to know that she was not a bad person.
In the end, they both lost. She lost the judgment and the creditor lost on the money she owed and the money they paid to legally find out she had nothing. My guess is that they paid 50% of what was owed, again, to pay the attorney to sue her. For nothing. She has nothing.
That is not the case with everyone. Others try this approach because they are tired of paying on the debt. Others find themselves here temporarily as they find themselves in a bad situation. Regardless, understand that the court will rule on the side of the contract you signed to stand behind your debts you incur.
The judge that day admitted that they economy collapsed just prior to him winning his seat. Since then, it has been the toughest job he has ever had. Why, the law says we have to pay and so many good people are affected.
What is my point? Work to pay your debts. Don’t ignore them. Don’t think they will go away because you ignore calls from creditors. They will not. Sticking your head in the sand does not help.
Get on a plan that addresses your current financial situation and your plan to eliminate debt. As we enter this new year, make that your goal – to get out of debt! Get started now and avoid the courthouse.
The other point – avoid debt!