You work hard to pay your bills and feed your family, but maybe the paychecks don’t stretch far enough to cover it all. Maybe your spouse lost his or her job; maybe you’ve had a medical emergency; maybe you’ve been borrowing from Peter to pay Paul, relying on credit to pay your debts, and now you’ve maxed out.
Your financial footing, already precarious, starts to slip. Rent, utilities, and groceries being first on your priority list, you can’t pay your debtors. Harassing phone calls start coming in — so you stop answering the phone. Someone comes to your door with a sheaf of papers: the creditor has filed a lawsuit seeking payment. You can’t afford a lawyer — or so you think — and so you ignore this, too.
The next thing you know, the court has issued a judgment against you not only for the amount you owe the creditor, but also for various fees the company has added. You’re in deeper waters than ever, and you still don’t know how you’ll pay.