Can You Go To Jail For Credit Card Debt

can you go to jail for credit card debt? iam about 10,000 in debt and i havent paid a payment in 7-8 months because ive been having some financial issues..can they really send you to jail?

No, there are a lot of people in your same situation, with 10 times your debt. It is the creditors fault for over extending you. They will eventually sell off your debt to a bill collector for pennies on the dollar, and then these people will harass you for a couple years. Eventually the phone calls will stop and after seven years of no contact with collectors, the debts will be removed from your credit. You are still young in the process so it might be smart to contact the creditors and set up payment plans yourself, to avoid any more damage to your credit. If your credit score doesn't bother you and you don't need a loan in the next six years, run like Bambi! This is a civil matter and they could take you to claims court, and garnish your wages, that is the most extreme, but then it would take them a lifetime to get back the money. You have not committed a criminal act, therefor you will not go to jail. If you do run, don't answer the calls from creditors, b/c everytime you have contact with them the clock resets back to 7 years.

2008-04-17 09:56:16 by Kerry

My hero, Dave Ramsey, tells of abusive practices and the violation of Federal law incorporated by debt collectors - particularly credit card debt ...

can the court send a person to jail
for not paying a credit card debt?

Not for Credit Card Debt. But yes for not answering a court summons.

2006-04-19 20:07:31 by cooldog

My son had a laptop put on a credit card that he got. Then lost his job and has not been able to pay it. They called and told him they were filing a lawsuit for "fraud against a federal inst." Told him he has until 4 today to come up with $4,000.00 or they will file the charges. Can they and will he go to jail if they sue him? Thank you for your help
He lived in Michigan and is 26. Now in New York.

How old is your son?

If he is a minor he is not responsible for the transaction. However the legal parent or guardian may be. If he bought it without your knowledge or permission (your card), you prob can return it to the store and state such, and that he is a minor, if that is the fact.

If it was his card, and if he is an adult, it's his problem.

I don't know what is "fraud against a federal inst."

These idiot collection agencies (illegally) threaten people all the time. I have addressed a number of posts on these issues and have researched the net on how people can deal with these people.

1. All they can do is try and sue for the money (and call you all the time unless you ask them to stop calling*). If you have no money, it's hard to collect.

2. Whatever you do, don't ever file bankruptcy for $4,000. I don't care how broke a person is, that is not the move you want to do, esp if you are young. Plus he will prob not qualify anyway then his credit is screwed up and has no money anyway. He'll get a job eventually, and they will be waiting. Get work ASAP.

3. No creditor or collection agency can "file charges." They can only sue. Only a District Attorney, state or federal law prosecutors can file "criminal charges" for criminal issues. Collections can only file "civil claims" (lawsuit) not "civil charges."

If people could go to jail for making bad financial decisions, everyone would be in jail at some point.

Here is what to do...

Be familiar with:
*The Fair Debt Collection Practices Act (FDCPA)
http://www.expertlaw.com/library/consume r/fair_debt_collection.html

Debt collectors may not:
- Falsely imply that you have committed a crime.
- Falsely imply that they are attorneys or government representatives.

http://www.bankrate.com/brm/news/cc/2003 0519b1.asp

Debt collectors may not state:
- You will be arrested if you do not pay your debt.
- They will seize, garnish, attach or sell your property or wages unless the collection agency or creditor intends to do so and it is legal to do so.
- Can not threaten a lawsuit if they do not intend to file.

http://www.bankrate.com/brm/news/cc/2003 0519b1.asp

If you cannot return the item, even if you don't get all your money back, then contact the company who had the debt, and work out a financial plan.

I would prob get a free consult from an attorney who has collection experience for advice, since collectors are aggressive, and persuasive. You have to know the law and your rights. Their job is to say or do anything to get you to pay. U.S. federal law is very specific on what they can and cannot do or say.

Credit Counseling is another alternative who can assist you in negotiations and payment plans. Look for a non-profit company. Ask about their costs and fees, and what do they do for you. Get is all in writing.

Search Credit Counseling Agencies Approved Pursuant to 11 U.S.C. § 111 (US Dept of Justice official site)
http://www.usdoj.gov/ust/eo/bapcpa/ccde/ cc_approved.htm

example:
http://www.nfcc.org/

Get it handled.

You don't have to do anything by any certain time unless instructed by a Court Order.

2008-09-02 11:50:20 by Kay A

Wages can be attached ("garnished") for credit card debt in some states, but not others; still its a fair amount of hassle for a company to do this, but it can be done in some states. You can't go to jail, debtors prison went away hundreds of years ago.

Suggest you work out a plan (call the credit card company if you want - its in their best interest for you to pay off this debt) to pay off the debt slowly over time, and stop accumulating more debt. Maybe you could get the high interest debt transferred somewhere else, depends on your situation.

If its hopeless and you can't pay off the debt, you can declare bankruptcy, but don't take this step lightly. The bankruptcy will follow you around for 7 years, making it very hard to get other credit, get a place to stay, and causing all sorts of other problems.

Good luck.

2006-05-13 12:28:31 by smileygrl74_03

I was served with a court order from a constable officer, but in the court order,was not a court date for me to go to, some time has past and I’m finding out that is too late or that I already past the time given to response when really there was not a specific time to response, and from friends I hear lots of stories about cases like mine and it looks like the same at the end, that they can’t do anything about it, my friends tell me if I can’t pay they can’t make me pay or put me in jail, but what about the court order thet realy did not have a court date? I went to a lawyer and told me even though it’s late he would charge $1,500 but will not guarantee anything ( I don’t trust these people it seems like they only want money and try to scare you just as much as these credit card companies )and also told me that this credit card company could eve put a lean against my home.

Is all of these true? I’m worry about, it should I be?

Thanks
Jose from Houston Tx.

If it was a legitimate court summons, and you failed to appear, they will enter a judgment against you. This means the creditor will have to file paperwork to garnish wages or seize any bank accounts.

YOU CAN NOT GO TO JAIL FOR FAILURE TO APPEAR OR PAY!

Your employer will receive a notice of garnishment and then they will inform you of the amount (average 25%).

Here is a link to explain the law in Texas
http://www.fair-debt-collection.com/stat e-garnishment-laws-5.html#44

LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.

2008-03-13 19:00:31 by CUNY