2006-08-13 14:28:11 · 13 answers · asked by david d 1 in Business & Finance ➔ Credit
Only if the credit card debt you have is fraudulent. Credit cards are non-recourse. That means that there is no collateral for the borrowing. The card company could sue you to pay the balance if it is high enough, but they usually just charge it off if you don't pay. Probably the best solution for you is contacting a free credit counselling service that will help you create a plan. It worked for my wife to pay off 7k in credit card debt on 5k in income per year. ( I told her she had to pay it).
2006-08-13 14:33:52 · answer #1 · answered by siznaggle_tooth 1 · 0⤊ 0⤋
If you have filed bankruptcy already within the last 10 years then yes prison is your next step because you cannot file again. As far as having debt that you will never be able to repay, that may not be true. It may feel that way. There are people in debt by hundreds of thousands of dollars ... and guess what... they CAN find ways out of the credit card trap. Bankruptcy may be for you ... or maybe not. Before you judge your situation, get ahold of Consumer Credit Counseling Services for a FREE consultation. If they agree that bankruptcy is your only freedom, go for it. They may have other suggestions that you may not have thought of.
2006-08-13 14:54:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, you can not go to prison in the United States for not paying your debts. If you have over $10,000 in unsecured debts, you may consider filing a bankruptcy. An attorney will usually give you a free consultation for this.
If you have less than $10,000 in unsecured debts, consider going to CCC (Consumer Credit Counselors). They are a non profit organization that can help you consolidate and or improve the condition of your credit.
2006-08-16 08:38:31 · answer #3 · answered by Anonymous · 0⤊ 0⤋
My understanding, and I'm in the same boat!, is that no, prison is not likely in your future unless, as stated in other responses, you specifically set out to commit fraud. And they have to prove intent, not just that you "did it".
What I have been told by lawyers is that, depending upon your state, the credit card company *will* perform what is called an "Asset Search" which is done to determine if you have financial assets that they can possibly sue for access to in order to reduce/eliminate the debt. If all that they can find is a car or home, then you can argue that you need to keep these assets to provide a livelihood for you and your family, and will PROBABLY be OK. The next step the credit card company is likely to take is to attempt to garnish your wages with your employer. Some states allow this for unsecured debt (i.e. credit cards), some don't. If yours does, you'd need to work with a lawyer at that time to ensure that they don't diminish your wages to an "unlivable" amount.
I have dealt with Collection Agencies that will threaten or predict all kinds of things, including prison... but no creditor really wants this because it means they will never see a penny.
A friend of mine told a collection agency that he was planning on filing for bankruptcy (which, although not pleasant, is not a jail term -- some financial institutions will allow you to get a secured credit card and then convert it to an unsecured one after 6-9 months of "proper" usage) and was never contacted again. When he later found himself in possession of a large sum of money, he contacted the original creditor (not the collection agency) and offered a settlement... They took the settlement and even made a notation in his credit history that the debt was eventually settled... no it's not as "good" as if the credit history indicated that he "made payments on time, etc" but it's better than "defaulted on credit agreement.
Debt will not result in prison in this country... it might result in reduced wages, and it might make future credit/purchases difficult or impossible, but not prison. Possibly repossession of assets, but check with a lawyer -- it's easier to prevent repossession than it is to undo an unlawful repossession.
2006-08-13 14:56:06 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Never repay? Have you thought about debt management? They can get the interest rate lower for you. I wasn't working and had 2 credit cards I got the interest rate to 0% and made $10.00 a mo payments.
2006-08-13 17:05:43 · answer #5 · answered by Pahoua 2 · 0⤊ 0⤋
No. But you can go into bankruptcy. Which is pretty much like prison, without the walls (no credit cards, no loans, tough even to get a job with that on your record).
2006-08-13 14:36:31 · answer #6 · answered by Anonymous · 0⤊ 0⤋
In the US you can't go to jail for being ing debt. The worst that could happen is forced bankruptcy. If the debts were incurred fraudulently, you could go to jail for fraud. Incurring more debt when you know you won't be able to pay, could be considered fraud.
2006-08-13 15:55:30 · answer #7 · answered by STEVEN F 7 · 0⤊ 0⤋
Not in and of itself. If they can prove what you did was fraudulent, then yes.
For example.......if you were getting late notices and then you flew to Hawaii and overlimited every bit of credit you had and then filed bankruptcy. If you're operating in good faith, you won't go to prison. But if you give them a lot of evidence that you're committing intentional fraud, then you can go to prison for fraud.
2006-08-13 14:35:59 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I hope not. but If so, can i be your cellmate. Because my credit card debt is a beast.
2006-08-13 14:34:34 · answer #9 · answered by me 2 · 0⤊ 0⤋
If so, i'll be right there with ya with my heafty 45k debt.....save me a spot in the luchline.
2006-08-13 14:50:46 · answer #10 · answered by Anonymous · 0⤊ 0⤋