Common Question: I can’t pay my bills. What happens if I don’t seek bankruptcy protection and just stop paying?
Answer: It depends on your income and assets. Creditors can file a lawsuit against you. Once they win, they might seek to garnish your wages, seize your bank account, or go after other assets in your name. They can subpoena you for a deposition in which they swear you in and ask you a lot of detailed questions about your work and property. People that fail to comply with court orders may be subject to contempt of court sanctions.
Assuming a debtor qualifies for bankruptcy and does not have assets that are unprotected, then seeking bankruptcy protection may be a way to wipe away past debts forever so people can get a fresh start. Many people are pleasantly surprised at how simple the bankruptcy process can be–especially for those with low income and few assets. Speak with a bankruptcy attorney to determine whether you should file a bankruptcy.