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When a person has financially reached a point where no matter how much positive cash flow is coming in, it will not or cannot pay down debt, it's called being Bankrupt. If a person cannot pay down their debt, several things can happen.
A delinquent account can be turned over to a collections agency, the negative equity (the value outstanding) can be reported to any credit monitoring companies (lower credit score/inability to obtain future credit/loans), and that person can be sued to collect the outstanding debt forcefully (liens and garnishment).
What else can I help you with?
What happens in Pennsylvania if you can't pay for your credit cards?
If you are unable to pay debts, depending on how much money is involved, you may have to declare bankruptcy or liquidate your assets to pay off debts
What is a person called who is unable to pay their debts?
They are called a debtor, and they are often bankrupt.
What is a sentence for the word bankrupt?
Unfortunately, when the man talked to the teller at the bank, he said " Sorry Sir, but you have gone bankrupt." The CEO was unable to pay his debts, so the company went bankrupt.
What happens when a company goes under?
When a company goes under, it means that the company is unable to pay its debts and is forced to close down. This can result in job losses for employees, financial losses for investors, and the company's assets being sold off to pay creditors.
What can you do to help clean up debts on your credit report?
Besides paying your debts off or filing bankruptcy if you are unable to pay off these debts there is nothing you can really do to clear them from your credit report. Most debts stay on your credit report for seven years.
What happens in Pennsylvania if you can't pay for your credit cards?
If you are unable to pay debts, depending on how much money is involved, you may have to declare bankruptcy or liquidate your assets to pay off debts
Being unable to pay one's debts?
Bankrupt
What does insolvency mean?
1 unable to meet debts; bankrupt 2 insufficient to meet all debts; as estate or fund
What was the consequence for farmers during the dust bowl?
They were unable to pay their debts.
What is the meaning of bankrupt?
declared in law unable to pay outstanding debts.
The federal government was unable to pay its Revolutionary War debts because it could not?
The federal government was unable to pay its Revolutionary War debts because it did not have the power to levy taxes. The war was fought from 1775 to 1783.
What happens when your estate is zero and you have credit card debt?
Credit card debts are one of the primary reasons someone should open an estate. The estate has to pay off the debts. If they are unable to do so, they distribute as best they can. If the court approves the distribution, the debts are ended.
What is a person called who is unable to pay their debts?
They are called a debtor, and they are often bankrupt.
What is a legal proceeding for distributing to creditors the assets of those unable to pay their debts?
Bankruptcy
The term bankrupcy specifically refers to?
Being unable to pay debts and honor monetary commitments.
What was a consequence for farmers during the dust bowl?
The gov. Took their land
What is a sentence for the word bankrupt?
Unfortunately, when the man talked to the teller at the bank, he said " Sorry Sir, but you have gone bankrupt." The CEO was unable to pay his debts, so the company went bankrupt.
