In Texas, if you have a credit card debt for about $7500, and do not pay, do you go to jail?
This is America. We don't have debtor prisons. No one goes to jail for having debt. No matter how large the debt is.
by halefarmboy - 18 hours ago
No no no -- you absolutely cannot ever be arrested or thrown in jail for being delinquent on credit card debt, anywhere in the U.S. Debt collectors will actually sometimes threaten people with this, but they are lying and hoping to scare unsophisticated people. I live in Texas and was formerly a financial advisor here. The worst case scenario from a legal point is that they can sue you -- take you to court and say you owe them money, and hope the judge rules in their favor. This is at worst a CIVIL issue (lawsuit) and NEVER A CRIMINAL ISSUE (jail, arrest). But employing lawyers and going to court is expensive in itself and they're busy hassling lots of people -- so they will probably NOT sue you (but no guarantees). Even if they successfully sue you, the likely remedy from the judge is to work out a wage-garnishment plan that is based on your income and expenses -- which would likely be much better than whatever the debt collector is trying to get you to do -- as they will urge you to foolishly borrow money from relatives, etc. All they want is the money. Key Point: IN TEXAS THE STATUTE OF LIMITATIONS ON DEBT IS 4 YEARS. If you make it to 4 years after missing a payment, without being sued, then you are home free -- there is no legal recourse for them to collect from you, ever. All in all, most likely the only "punishment" is bad reports to the credit bureaus, damaging your credit report. But even that goes away after 7 years. P.S., hey great information ECHO! Very interesting.
by KevinStud99 - 18 hours ago
No, credit cards debts are considered civil matters and not legal matters. The credit card company can take you to court if they feel like the debt is large enough. But take it from me, a former debtor herself, their threats are nothing. Creditors barks are louder then their bite. It will only ruin your credit.
by Jasmine - 18 hours ago
It's a civil issue, the worst they could do is sue & win a judgement. If they win a judgement, they cannot have your wages garnished in Texas, but they can but a lien on your property. If your job requires a background investigation or a security clearance, this may cause problems, even loosing employment. Dont want to scare you like this but dont get blindsided. You can always negotiate the settlement with the collection agency for pennies on the dollar. But get the settlement in writing and make sure they mark you credit account as settled in full. (f you go that route). If it is your debt, and you can not pay in full, negotiate with them.
by c0w60y - 18 hours ago
u don't go to jail but be careful they will keep calling u to harras u that u owe them and this and that. if i was u i will consult with a lawyer first i know u have to pay the lawyer but talk to a lawyer. they will also keep passing the debt to other collectors cause i have envelopes that belong to my grandmotehr that supposedly she owe's money and they all have different locations that they passed this collections. Talk to a lawyer is my only answer to this ?
by serrano6550 - 18 hours ago
No one goes to jail for unpaid debt, this isn't a Dickens novel. They can haowver obtain a court judgement against you which will allow them to garnish wages and seize assets.
by douglas l - 18 hours ago
I dont know about any sources but I do know from speaking with attorneys, etc that you do NOT go to jail because of any unpaid credit card debt. The credit card company can however file suit on you if a person goes to jail for unpaid credit card debt then the world would be damn near empty and jailhouses FULL
by Sharon F - 18 hours ago
Not in any state, debtors prison went out long long time ago. http://www.ftc.gov/gettingcredit/ What you need to know about your credit.
by Sgt Big Red - 18 hours ago
Eventually you could. First they will turn you over to the credit bureau and your credit will be ruined, then they will turn your debt over to a bill collector, then if you still do not work something out with them, they will file a lawsuit against you, then they will try to arrest you. I believe it applies to all states not just Texas. Don't you think it best to call them and try to get the lowest interest rate and pay them the minimum each month until you get more financially stable. Or you can check out some of those debt relief companies.
by My Baby! - 18 hours ago
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