What's the legal difference between unpaid debt and theft? You can go to jail for not paying for a rented car or restaurant bill.
by 
SaltyJohn
ANSWERS: 4
-
The two examples you gave would be theft, where you took an item and did not pay. Theft would be prosecuted criminally. "Debt" could be eviction(unpaid rent), unpaid credit, where you can be sued civilly. There are civil actions that can result in jail, unpaid child support is one
-
It's a subtle distinction but it boils down to intent and the assumed risk of the product/service provider. When a company rents you a car or sells you a meal, the implicit nature of that contract is immediate repayment. Hence, if you default, the law assumes that you had no intention to pay and are therefore committing a theft. When a company loans you money, the implicit bargain is that you will *attempt* to repay it and there is some risk that you will not. The lender is aware of this risk from the beginning. Because of this risk, part of the interest rate that the borrower pays is a premium to cover that risk. So, a lender might loan you money at 5% if they were absolutely guaranteed that they would be repaid, but will insist upon 5.5% because of the possibility that they will receive only a partial repayment. On the other hand, if you borrow money with demonstrably no intention of repaying it, that is a fraud and will land you in jail. I hope this helps.... . . .
-
Unpaid debt is a civil matter, not a crime. Theft occurs at the time of the taking. If you went to a buffet (the type you pay at the end) and began eating the food with the intent not to pay, that is the theft. It is similar to a scenario where you rent an apartment with the intent of not paying. This latter example is theft in some jurisdictions, and fraudulent inducement in others.
-
Intent is the difference. Theft requires the intent to take property, from someone else, that does not belong to you. Unpaid debt does not require intent.
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC