Can You Get Arrested For Not Paying Debts?
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Can You Get Arrested For Not Paying Debts?

On Behalf of | Dec 14, 2018 | Uncategorized |

It is rather unusual to get arrested for not paying debts. In the 19th century, debtors’ prisons were abolished in the 19th in the USA, as well as the Fair Debt Collection Practices Act forbids debt collectors from intimidating you with the prosecution.

In the state of Georgia, you can’t be put in prison for stopping working to pay a debt or judgment. The possible outcome when you fail to pay a debt is that it will certainly be reported to credit bureaus, and it will become part of your credit history for approximately seven years. It is likewise possible that your residential property is taken and your wages may be garnished. Yet since debtors’ prisons are considered to be unconstitutional and biased versus individuals with lower revenues, you are not likely to face sentence time over a debt.

Nevertheless, you should understand that there are certain scenarios that can cause jail time in connection with an outstanding debt. These consist of:

Failing to Pay Income Taxes

Not paying your income taxes is a criminal offense. If you’re prosecuted for this, it’s feasible that you might go to prison.

Purposefully Violating a Court Order

If you on purpose go against a court order, you might end up serving jail time. There are several ways in which this might be possible, but court-ordered child support is the typical one. If you stop working to pay, the person receiving those repayments can ask for a court hearing. If the court finds that you could have made the payments but refused to, they might order jail time.

In one more scenario, in some states a court may get you to pay periodic repayments on a debt. As long as you abide by making these repayments, you will most likely avoid prison. If you fail to make these settlement, however, you might encounter jail time.

Failing to Appear for a Debtor’s Examination

A debtor’s examination is when a judgment creditor orders you to visit court to address inquiries under oath regarding your financial circumstance. You are not compelled to pay the debt, but have to answer all concerns honestly. By doing so, you are normally totally free to go after the questioning. But if you do not appear at the appointed time, you can be accused of contempt of court and in prison. This method, unfortunately, is gaining popularity in many states.

If you have any questions or concerns regarding debts and filing bankruptcy, be sure to get sound legal recommendations. Call an experienced bankruptcy attorney James “Jack” Setters.