ANSWERS: 5
  • Well, what happens is the lender can sue the borrower. At that point a court ordered "judgement" to pay is administered. Once a judgement is handed out, then the borrower must pay. If they do not, then they are committing a crime against the court, not just the lender. At this point the court/judge ..etc can send th borrower/debtor to jail.
  • Generally not in the US. A lender can sue a borrower. If the judgment is against the borrower and the borrower still doesn't pay then the lender can have the borrower's income garnished. If the loan was for a motor vehicle then the lender can repossess the vehicle. If the loan is a mortgage then the lender can foreclose on the borrower's property. About the only time a lender can initiate proceedings to have a "borrower" incarcerated is if the borrower borrows something from the lender without the lender's permission.
  • We used to have debtors prison in the U.S., but not anymore. Rhode Island still has a form of debtors prison, but it is really only used for people who are believed to be hiding assets.
  • A lender cannot, but they can inform the feds of fraud on the borrower's behalf and then indirectly have the borrower sent to court or jail. It doesn't happen that often but there are so many laws we don't know about so its possible.
  • If you call the police they will tell you it is a civil matter, not criminal, and that if you'd like you can take them to court. They won't be arrested.

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