Consumer defaults often occur in rent or mortgage payments, consumer credit or pension services. An EU-wide analysis has shown that some at-risk groups, such as. B single households, are unemployed (even after correcting the significant effects of low income), are young (especially under 50 years of age, with slightly different results for the new Member States, where older people were more at risk) are able to rely on social networks. Etc. Even the illiteracy of the internet is linked to an increase in default, perhaps due to the fact that these households are less likely to find their way to the social benefits to which they are often entitled. While effective non-legal debt consultation is generally the preferred option – more economical and less disruptive – consumer default can end in legal debt settlement or consumer insolvency procedures, with the latest procedure in the UK ranging from one-year proceedings to six-year proceedings in Germany.  If you have not repaid the arrears or have entered into a repayment agreement with your creditor within 14 days of receiving the default form, your credit contract may be terminated and the default is recorded in your credit file for 6 years. The creditor is then legally entitled to demand an early repayment of the total balance of the outstanding. You can begin the legal process that could lead you to be tried for a County Court judgment (CCJ) that orders you to immediately settle the entire outstanding debt or in increments. The District Court judgment (JCC) would also be recorded on your credit file, which may have a negative impact on your loan in the future. If you are at the end of a standard message, you must do the following: Your creditor may also take further action after the account is terminated, including: If you receive a “letter of claim” from your creditor or documents from the regional court after receiving a late payment notification, please inform your DMP or TPP provider. You will be able to talk to each other about what to do next. Sovereign borrowers such as nation states can also opt for a loan, even if they are able to make the payments.