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Most unpaid debts are pursued by creditors through the civil court system--which does not carry the possibility of jail time. Creditors or debt collectors who claim that you can go to jail are not only lying, but they are likely in violation of the Fair Debt Collection Practices Act. According to the FindLaw website, certain circumstances may occur in which you do get sent to jail in relation to your unpaid debt. Refusing to pay income taxes, violating a court order such as not paying child support and trying to hide assets from creditors to whom you still owe money can land you in jail. You can go to jail for certain unpaid debts, but the most common debts, such as a credit card, does not result in jail time. However, you should not use this as an excuse to run up debt. Creditors may get a court-ordered garnishee of your salary and ruin your chances at getting future lines of credit. Law Offices of Craig P. Fagan: Can I go to jail for not paying my bills? FindLaw: When You Can't Pay Your Debts FAQ US Federal Trade Commission: Fair Debt Collection Practices ActOn One Hand: Most of the Time, No.
On the Other: Some Situations Call for Jail Time.
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