What can lenders do if I don't pay them?

As you well know, we got rid of debtor's prison. This means that not paying your bills is not a crime (except for the IRS, of course). In the case of a secured loan, the lender can foreclose on the property that secures the loan. Unsecured lenders can get a court judgment and attach your property and become secured creditors. But if you have no property of any real value, there is very little a lender can do. A lender can try to have your wages garnished, if you work. But if you don't have a job and no real assets, there is virtually nothing that a lender can do. And if your debt is small, it may be more expensive for the lender to attempt to collect. In most cases, a lender will stop short of legal action, and write off your debt.

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