Bible_Belt
Master Don Juan
I know it's not that big of a deal when it comes to credit.
It can be, depending upon how much you need credit.
You will get a judgment on your credit report. That will drop your score. Also, you probably won't be able to get a mortgage or major financing until the judgment is paid. You can tack on an explanatory paragraph if you like to your credit report that will become part of the report, but that is probably a waste of time. When I brokered mortgages, "no liens, no judgments" was a rule for every loan I did. I imagine there are loans that are possible to get if you have a judgment, but at least with mortgages it would be a 'hard money' lender who requires a big down payment and gives you a crappy interest rate.
If you do nothing, seven years after it hits, the judgment will drop off your credit. Sometimes you have to write and request it, but you always have the option of waiting it out. You still owe the money, but it will not longer be reflected on your credit score. If you re-negotiate a payment plan during that seven years, the clock starts over.
Bankruptcy is a realistic option, not that I am recommending it, but the debt would go away if you don't have many assets, and you could have decent credit again in just a couple of years. If you are making money and show good debt to income ratios, someone will want to loan you money. It is a competitive market.
It can be, depending upon how much you need credit.
You will get a judgment on your credit report. That will drop your score. Also, you probably won't be able to get a mortgage or major financing until the judgment is paid. You can tack on an explanatory paragraph if you like to your credit report that will become part of the report, but that is probably a waste of time. When I brokered mortgages, "no liens, no judgments" was a rule for every loan I did. I imagine there are loans that are possible to get if you have a judgment, but at least with mortgages it would be a 'hard money' lender who requires a big down payment and gives you a crappy interest rate.
If you do nothing, seven years after it hits, the judgment will drop off your credit. Sometimes you have to write and request it, but you always have the option of waiting it out. You still owe the money, but it will not longer be reflected on your credit score. If you re-negotiate a payment plan during that seven years, the clock starts over.
Bankruptcy is a realistic option, not that I am recommending it, but the debt would go away if you don't have many assets, and you could have decent credit again in just a couple of years. If you are making money and show good debt to income ratios, someone will want to loan you money. It is a competitive market.