You can’t go to jail for nonpayment, but… If you’re worried about spending time behind bars for not paying your credit card debt, know that there is no debtors’ prison in the United States.
However, there are other legal repercussions of which you should be aware.
What happens if you have unpaid credit card debt?
Unpaid Credit Card Debt Can Get You in Jail
But the truth is, unpaid debt is considered a civil liability, not criminal. Accumulating debt will hurt your credit score. With a bad credit score, you’ll have trouble having your loan approved. Paying off your credit card debt will also give you peace of mind.
What happens to unpaid credit card debt after 7 years?
After seven years, most negative items will simply fall off your credit report. You still owe your creditor even when the debt is no longer listed on your credit report. Creditors, lenders, and debt collectors can still use the proper legal channels to collect the debt from you.
What happens if I don’t pay my credit card for 5 years?
If you don’t pay your credit card bill expect to pay late fees, receive increased interest rates, and incur damages to your credit score. If you continue to miss payments your card can be frozen, your debt could be sold to a collection agency, and the owner of your debt could sue you and have your salary garnished.
Can a person be imprisoned for debt?
When may a person be imprisoned for debt? While no person may be imprisoned for nonpayment of debt, an obligation acquired through fraud may be criminally prosecuted. In such case, the fraudulent act of securing the debt, and not his default in paying it, is punishable.