I have addressed these two main questions about being and debt and going to prison or jail in the past a few times. There seems to be two (2) different questions:
- Can I Go to Prison For Being in Debt?
- What Happens to My Debts If I Go to Prison?
Two very different questions, and I will try to cover and explain them here.
Committing a Crime and Going to Prison
Don’t do the crime if you can’t do the time. The saying goes.
If you commit a crime, and are caught, and are sentenced to jail or prison, what happens to your debts? What happens to those you owe money to?
There are a few things that can occur here, and some are variables and one is a constant. The constant is, you are in prison. The variables are what your creditors may or may not do.
If you are in prison, unless you have money in the bank and direct debits or standing orders set-up, eventually your bills and accounts are not going to be paid. At that time those you owe will come looking for you, chasing you for payment.
But you are locked-up, and have no way to earn money to pay your bills and debts. You have other matters to deal with.
Your creditors upon being informed of your sentence in prison can do a couple of things. They can realise they are not going to be paid or get any money out of you, and wait until you are back out on the street again, or they could take legal action and seek a CCJ/County Court Judgment, in the hopes later they may be able to enforce it.
They also could write off the account/debt if they know you are to be locked up for a very long period of time.
If you cannot pay because you are in prison or jail, you cannot pay.
Being in Debt is Not a Crime
Can I go to prison for being in debt?
Will I be arrested at the airport if I return to the UK having left debt behind?
Can my creditors have me arrested?
As stated above, being in debt is not a crime….in itself. You can find yourself in debt due to crime, such as fraud or some compensation scams, but you will not be jailed or sent to prison just for being in debt.
There are no more “debtor’s prisons”.
So perish the thought of being arrested or jailed, just for owing money.
If you have any questions related to this, just ask me here.