What can happen if I miss payments or don’t meet other obligations of a contract?

If you breach (fail to perform) your contract with another party, you may be liable for all damages (losses) suffered by the other party as a result of your breach. The other party can take you to court and seek judgment for money damages or, in some cases, force you to perform the contract. When you buy goods on credit such as automobiles, televisions, or furniture, the creditor (seller) may be able to repossess (take back) the item sold to you. Even if the item is repossessed, you still may owe some of the debt to your creditor. Also, if judgment is entered against you by the court, your wages or bank accounts may be garnished (paid to the creditor) or your personal property may be subject to sale by the sheriff.