Also, if you earn less than 30 times the minimum hourly wage per week, your wages are not subject to garnishment. The judgment can last until it is paid. Interest is added to the amount of judgment. Some options include working out agreements to pay your debts back over a period of time, taking out a new loan to pay back existing debts, and bankruptcy. Also, there are some consumer credit counseling agencies that may be able to help you.
Bankruptcy is a formal court proceeding.
It is quite complicated. The result is that most debts are canceled. Bankruptcy can have a bad effect on your credit rating, making it harder for you to obtain a loan in the future. A credit rating is the sum of information compiled by a credit bureau from the various people who you owe or have owed money. It is intended to measure your ability to repay a debt.