11. Monetary judgments.
Already owe a creditor that sued you for an unpaid debt? As long as the judgment is in effect, the judgment creditor can take what’s theirs with whatever means they have at their disposal, including liens and levies.
12. Collection accounts.
And finally we come to debts that have landed in collection agencies. If you’ve ever had the pleasure of speaking with a person who works for one of these companies, you know they can sound mean and scary. So why do they fall to the bottom of the list?
Because if the debt is older than the statute of limitations for your state, there is nothing they can do to you except continue to list it on your credit report. After seven years, it can’t be reported any longer. On the other hand, if the collection debt is fresh, they can take legal action against you. The larger the debt, the greater this possibility is.
Now start to arrange your own array of obligations. As you can see, it’s not always linear – consider this list a guideline. For example, a family debt might be more crucial to you than your car. That’s OK. Just know what can happen if you fail to pay any of these creditors so you can make the most sensible and informed decision possible.