Whether you promised to pay a doctor, an ex-spouse or a credit card bill, you entered into a legally binding debt contract when you made that agreement, according to both Experian and "How to File for Chapter 7 Bankruptcy."
Potential Consequences
Violated debt contracts can lead to negative credit reporting, civil lawsuits against you and wage garnishments.
Misconceptions
Even bankruptcy cannot eliminate your legal obligation to pay certain debts, such as child support, alimony, court fines, tax bills less than three years old and civil damages owed due to illegal activities.
Statute of Limitations
Bill collectors seeking payment of credit cards and loans cannot use the courts to sue you once your state's statute of limitations expires, according to CreditCards.com. The time frame depends upon your state of residence; for example, Alabama residents cannot legally be sued for debt contracts after three years, while Colorado residents can be sued as long as six years after the contract was initially violated.
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