What happens if I offer a repayment agreement and break the agreement after a few months?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What happens if I offer a repayment agreement and break the agreement after a few months?
I was told that they could not come after me, again since the agreement was established with the company.
Asked on January 10, 2012 under Bankruptcy Law, North Carolina
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you and the company sign a repayment agreement, you have entered into a contract. If you don't comply with the terms of the contract, the company can sue you for breach of contract. If the company gets a judgment against you, it can enforce the judgment by a wage garnishment, placing a lien on your property, etc.
If you enter into a repayment agreement with the intention of breaking the agreement, you could be liable for fraud.
Instead of entering into a repayment agreement which may be unaffordable, you might want to consider filing bankruptcy if the company gets a judgment against you for the amount you owe. It would be premature to file bankruptcy until there is a judgement against you. Depending on your income and other factors, you may be eligible to file Chapter 7 bankruptcy which is straight liquidation that eliminates your debts. If you are not eligible for Chapter 7, you could file Chapter 13, which requires a plan (budget) for repayment of creditors.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.