Anne-Marie Saint-John, Alva, Long Island City, NY >
Many small business owners under credit distress have considered the option to simply stop paying their debts. But before you make the decision to suspend your payments, consider its consequences.
Note that the following is a generalization of what occurs over a time period of 180 days if debts are left unpaid. However, specific cases may differ as the repercussions depend on the particular practices of each financial institution, the state in which you reside, the amount of the debt, and whether you have possessions that the bank can seize.
After a 30-Day Delay:
After a 60-Day Delay:
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After a 90-Day Delay:
After a 120-Day Delay:
After a 180-Day Delay:
Damage on Credit History
Having a bad credit history will negatively affect your chances of:
It is worth doing your best to pay off your debts. If you are not going to be able to pay for a month or two, it is a good idea to call the bank to negotiate a grace period. You will be surprised to see how flexible banks can be as long as they see that you are willing to pay. Do what you can to avoid complications in the long run and take action today!