Debt Settlement Help

What is the worst that can happen to me when I won’t be able to pay off my debts? In this current economy condition I know I am not the only person facing this problem. So there is credit card loan and some other too. Also I am worried about the health insurance. I believe no matter what happens, something we always need to keep a backup of.  So what do I do and am I in big trouble? Do I have any other way of getting rid of this debt problem? I mean does my creditors understand or accepts what I am trying to say here and will they are going to help me out with it at the end?

Thanks in advance.

Hi Terry-
Typically, if you are unable to resolve your debts, you have to understand that your creditors reserve the right to pursue legal action to collect the debt. If they sue you, and you still cannot resolve the debts at that time, they will be awarded a judgment and will attempt to execute that judgment through a wage garnishment, property lien or bank account levy.
So, if you are employed, they could take a percentage of your wages to satisfy the debt. The amount with they can garnish is determined by state laws where the debtor resides. If you own a home, the creditor could attach a lien against the property to secure the debt. And if you have funds in a bank account, they could levy the account and take any non-exempt (also depends on state laws) funds in said account to satisfy the debt. 
The aforementioned scenarios, typically, are the worst things that happen to a debtor who fails to do anything at all to pay off his or her debts. The good news is you have plenty of options to try and resolve your debts.
Some of those options include paying off the debt on your own (using your savings or selling assets to generate money), credit counseling or debt settlement programs, or in a worst case scenario filing bankruptcy if the previously mentioned approaches are unrealistic for you. 
I am not an attorney and this does not constitute legal advice, I am only sharing with you the information I have from my experience in the debt industry. If you are uncomfortable sharing your situation through the forum, you can fill out a form on DestroyDebt.Com for a free consultation.