Driving school debt / can they report that to DAC?

DAC is not the place, it will be your credit that is destroyed for about 7 years.

There are other methods that can be taken once a judgement is entered against you including garnishment of your pay once they find your current employment. Sends the employer the notice from the Court order and the employer simply ships them your paycheck down to a state protected bare minimum a week.

If it is federal student loans then you will suffer potentially a freezing of your bank account, intercepting any tax refunds, other windfall payouts up to and including social security retirement etc until this is paid. This is not the kind of loan dis-chargeable in bankruptcy.

 

The most important thing to do is to keep in contact with the company in charge of the loan, if you intend to pay that is. If you keep open good lines of communication, they may allow you to pay a smaller amount for a month or even let you skip a month before they ding your credit report. If you don't intend to repay it though, keep your head down and hope they don't sue you.

 

7 years....and then, if they choose, they can tack it on for another 7 years. It’s an old wife’s tale that debt just goes away after 7 years.

 

Seems to be pretty on point for the two debts I refused to pay.

 

Well Im not sure how that goes. I had a repossession once and after 7th year everything credit took off.

 

Just do the best you can.
The 7 years only works if you know the tricks of it. Don't send even one penny or the 7 years starts over. Don't sign for any mail because that also restarts the 7 years. If anyone calls on the phone about the debt; hang up immediately.
Otherwise, just do the best you can and it'll all be history soon.
The debt has probably been sold to some 3rd party collection agency. Those people are trained to harass and intimidate. If it's a collection agency, just pay at your own pace and ignore the jerks.

 

They can if they sue.

 

Oh, I am not saying it doesn’t happen. Just that the creditor has the right/ability to put it “back up” for another 7 years. Glad it worked in your favor.