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Comment by lambda_dn | Hacker News Reader

You don't have to pay your debts now, but the downside is your credit rating takes a dive yet loans are still made everyday.

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You can't just stop paying and take the credit score hit. If you're solvent then creditors can get a court order to seize your assets, and if you have a job then they can levy a portion of your pay. For small debts creditors might just write it off but if you owe a lot then they'll absolutely come after you.

None of that is legal in the state I live in. Based on my personal experience in other states, I think you're exaggerating the likelihood that collectors will do anything except leave voicemail. But I don't know your definition of "a lot." Is $15k a lot?

Debt lawsuits for amounts under $15k are common in most states.

https://www.pewtrusts.org/research-and-analysis/reports/2020...

Unless we're talking about collateralized debt, most of the time my understanding is they'll send debt collectors after you and little else - those debt collectors are often willing to negotiate on the amount because they bought it for less than face value, especially if you put it off for a while.

I considered doing this because I got scammed by a water heater rental company that was asking for a ridiculous sum when I bought a new home, but eventually decided to avoid the credit hit. If I were closer to retirement it would have been a no-brainer.

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