what happens when you default on a loan 
if you can t make your loan payment that doesn t necessarily mean you have to default there s a handful of options and alternatives you might be able to secure real world examplebed bath beyond once a major retail chain in the united states specializing in home goods filed for chapter 11 bankruptcy protection on april 23 2023 this filing came after years of declining sales mismanagement and failed turnaround attempts the company had been struggling for several years facing intense competition from online retailers like amazon and other big box stores the covid 19 pandemic further exacerbated its problems as it did for many brick and mortar retailers in the lead up to its bankruptcy filing bed bath beyond defaulted on a significant portion of its debt in january 2023 the company warned that it was considering filing for bankruptcy protection due to its inability to repay its outstanding loans at the time of its bankruptcy filing the company listed its assets at 4 4 billion and liabilities at 5 2 billion thus the company did not have enough assets on hand to pay its debt and therefore defaulted on loans 