By choosing this option, the debtor will be placed in a position of dealing with many angry creditors on a regular basis. Just how angry and how aggressive each creditor will be depends upon the policies of the creditor, your payment history, and whether the creditor is secured. Unfortunately the debtor rarely realizes how aggressive the creditor will be until payments are missed. 

In a worst case scenario, if you continue to choose the "do nothing" approach, the creditor can attempt to collect the debt through repossession or foreclosure, by levying on personal property, and through judgment and garnishment. Secured creditors tend to move fairly quickly to take the collateral you have pledged to secure the debt. Unsecured creditors tend to be a little more patient, however they also tend to be much more aggressive in demanding payments. 

Usually the debtor begins to do nothing because of what is perceived to be a "blip" in their financial picture. This can include the loss of a job, unexpected and uninsured medical expenses, or other unforeseen expense. From there financialproblems can snow ball into a big problem in a big hurry. The strategy of continuing to do nothing may work in the short term,but it is not a long term solution to your problem. If you are going to attempt to work out something with your creditors, the time to start thinking about it, and talking to the creditor is before you miss the first payment. 

Once the debtor has missed two or three payments, it is much more difficult to attempt to work out a satisfactory resolution. If you allow the hole to get too deep before you take steps to getout, you can be buried before you know it. The longer you take to decide how to fix your particular situation, the harder it will be to resolve. 

Once you believe that you may be headed towards a financial meltdown, you should consult with an experienced attorney. This does not necessarily mean an immediate filing for bankruptcy, but it should be an immediate evaluation of your situation to determine if you can afford to "do nothing" for much longer. Some of the warning signs of an impending meltdown include: dipping into your savings every month to pay current expenses; missing at least two consecutive monthly payments; being sued for repossession, foreclosure or a money judgment; or you are no longer comfortable with your current financial condition. 

Financial problems should not be embarrassing for the debtor. In most everyone's life, there will be financial setbacks. The only question is how to resolve the problems and get back on the right track as quickly as possible. Make sure that you know your options and then make an informed decision, with the help of an attorney or accountant if necessary.