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Can You Go To Jail If You Don't Pay Your Credit Cards

Can You Go To Jail If You Don't Pay Your Credit Cards
Can You Go To Jail If You Don't Pay Your Credit Cards?

You might find false comfort in the thought that you can't go to jail if you don't pay your credit cards. While in reality you risk the chances being summoned to appear in court for more catastrophic legal procedures; such as:

Your salary being garnished, your accounts being frozen, or valuable property getting seized by court order to repay the damage.

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And regardless whether your car for example; will be valuable enough to recover the debt. You credit report will carry the bad reputation of a judgement issued on a past account.

Which will compromise all your future chances of applying for loans, credit, or a housing bond.

Which ultimately makes you a prisoner of your own device. That's why it's important to understand the: Pros and Cons of a secure vs unsecure loan.

What Happens If I Can't Pay My Credit Card?

If you can't pay your credit card account as per initial agreement, already your stepping into dangerous territory. Considering the fact that you're in violation of your contractual oath.

As a result you're actively receiving extra financial penalties. Like for instance: Your credit score gets injured, interest fees starts climbing. You get slapped with additional administrative charges on your already burdened account.

If you're really in some unforeseen predicament. And whether you want to or not; simply can't afford monthly payments.

All 'customer friendly smiles' disappears: Your active account get frozen, then moves directly to the issuers legal department.

Who may decide to sell your inactive credit account to a debt collector.

The debt collectors includes their additional charges for every phone call, the paper work you cost them and for some reason your debt doubles overnight.

They may try to call you a few times, if you ignore their calls, or fail to reach a repayment agreement. They may sue you, plus you pay for all the legal charges.

Then you get summoned to court for a garnish order, or your property may be seized.

Does Unpaid Credit Card Debt Go Away?

Heavily indebted people tend to think: By simply ignoring credit card repayments or unsecure loans; it will simply go away after 5 years.

Sadly it's NOT the case, because card issuers has a 4 year window-period (called the statute of limitations) to sue you.

But if that may be another bad financial decision on their part. Based on the fact that you're already bankruptcy.

That still will not save your credit report from getting dragged true the mud. You may get blacklisted due to the poor handling of your past debt.

Now that may not sound like a big deal: but wait till you try to get back on your feet by trying to find a better job, obtain a recovery loan or seek startup capital help for business.

In Summary:

Sometimes we have to make bad financial choices, to avoid worst outcomes. Like debt-review; which may affect your credit rating for a while. But at least legally protect your income from being garnished.

Besides most jobs these days require a clear criminal record and good credit status. You can easily find employment while being in debt-review as oppose to having judgments on your profile.