What can happen if an individual does not repay their contractual debt?

When an individual fails to repay their contractual debt, wage garnishments can occur as a consequence of borrowing agreements and legal actions taken by creditors. Wage garnishment is a legal process that allows creditors to collect a portion of an individual's income directly from their employer to satisfy a debt obligation. This typically happens after a court order has been obtained, indicating that the individual has not met their debt obligations and that the creditor has sought legal recourse to recover the owed amounts.

It's important to note that not repaying debts can lead to various financial consequences, including a negative impact on credit scores, which can affect future borrowing and financial opportunities. Additionally, wage garnishment can create further financial strain as it reduces the disposable income available for ongoing living expenses.

The other options presented do not accurately reflect the consequences of not repaying debt. For example, not repaying debts does not lead to a tax refund or result in becoming debt-free; rather, it continues the cycle of financial obligation. Similarly, evading eviction is not a viable outcome from failing to repay debt, as outstanding debts can impact personal finances and housing stability negatively.