Articles Tagged with debotor’s examination

jail for unpaid debtIt is quite unusual to go to jail for an unpaid debt. Debtors’ prisons were abolished in the 19th century in the United States, and the Fair Debt Collection Practices Act prohibits debt collectors from threatening you with criminal prosecution.

In the state of Florida, you can’t be put in jail for failing to pay a debt or judgment. What can happen when you fail to pay a debt is that it will be reported to credit bureaus, and it will become part of your credit history for up to seven years. It is also possible that your property is seized and your wages may be garnished. But since debtors’ prisons were found to be unconstitutional and biased against people with lower incomes, you are not likely to face jail time over an unpaid debt.

However, you should be aware that there are certain situations that can lead to jail time in relation to an outstanding debt. These include: