Can you go to jail for debt?

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asked Nov 17, 2023 in Law/Ethics by LucyVialli (4,170 points)
Can you go to jail for debt?

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answered Jan 17 by Chambliss (53,140 points)
You cannot go to jail for a debt itself although if you don't comply with a court order or pay a judgement you could be found in contempt of court and face jail time and fines.

The Fair Debt Collection Practices Act makes it illegal for any debt collectors to threaten or arrest you for any unpaid debt.

And you cannot be arrested or go to jail for unpaid consumer debts such as medical bills and credit cards.

You can however go to jail if you don't pay a debt such as child support or don't pay taxes and there is a criminal fraud involved or if you're found in contempt of court for disobeying a court order.

If you don't pay a Judgement that was ordered by the court then your wages could be garnished, your bank account could be seized and your property such as your, motorcycle any other property including your home could be seized.

The creditor can put a lien on your home which gives the creditor a legal claim to your home.

Interest and fees can be added and collection costs, court cost, attorney fees and you could even be found in contempt of court which can result in jail time and fines.

An unpaid judgement can also be added to your credit report and make it difficult to get loans and credit in the future.

To not pay a Judgement you will need to try and negotiate a voluntary payment plan with the creditor.

And file to have the judgment vacated or file a bankruptcy to discharge the debt of the Judgment.

A default judgment can be dismissed or set aside by a court upon a motion from the defendant if they can demonstrate a valid reason for the judgment to be dismissed or set aside.

Some valid reasons for a judgment to be dismissed or set aside are improper service of legal documents, excusable neglect or a meritorious defense to the claim and essentially shows that they had a good reason for not responding to the lawsuit initially and have a legitimate defense against the plaintiff's allegations.

Most judgements do eventually go away after 7 to 10 years depending on the state and the Judgement.

Judgements can however be renewed or discharged through bankruptcy.

For example in California most judgements expire after 10 years, unless the creditor renews the judgment.

Family law judgments, like those from divorce however do not expire.

In other states judgements often last 3 to 7 years, but the length of time depends on the state.

A judgement can be discharged through bankruptcy.

Although a lien may remain in place if the debtor is not entitled to exempt the asset.

Clearing the judgment can be done by paying the debt, vacating the judgment and appeal the court decision.

The debtor can pay the debt in full to satisfy the judgment.

The debtor can also legally challenge the judgment to vacate it.

And the debtor can appeal the court decision with the help of a lawyer.

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