It is very important to resolve personal debts at the earliest possible opportunity. Unlike business debt, personal debt hits you directly and damages credit in a way that cannot be avoided or thwarted easily in the future.
Personal liability can directly impact:
• Your Real Estate: by creditor attachment or lien for the entire amount directly against your home, inhibiting your ability to sell, refinance or purchase new property.
• Your Paycheck: by allowing creditor garnishment of your wages up to your state's maximum allowance (most states allow 25%) of every paycheck, to be deducted straight from your employer until paid in full;
• Your Bank Accounts: by allowing creditors to potentially withdraw, tap or freeze of your accounts.
• Future Credit and Loans: by prohibiting you from receiving loans, new credit cards or other credit lines that you would otherwise qualify for had your debt been previously settled or structured in payments.
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