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Can You Go To Jail For Not Paying Debt? (including student loans & credit card debt)

The short answer is no – you will not go to jail for failing to pay back your debts.

Here are very similar questions with the same answers:

Can you go to jail for not paying student loans?

No, you won’t be arrested or go to jail for not paying your student loans.

Can you go to jail for credit card debt

No, you won’t be arrested or go to jail for not paying your credit card debt.

Can you be arrested for debt

In Canada, not paying your creditors is not cause for arrest or imprisonment.

This doesn’t mean that not paying back your debts doesn’t come with consequences, though. What happens to you after you stop making payments to your creditors depends on multiple factors, such as:

  • How much you owe
  • How long it’s been since you stopped paying your creditors
  • How much money you make
  • What type of assets you own
  • Where you live

Based on the information above, your creditors may have the right to obtain the services of a collection agency. They may have the right to go to court to sue you for the money that you owe. They may have the right to go to court and get a judgement that will cause your wages to be garnished, your bank account to be garnished, a lien to be placed against property that you own, or a judgement that requires you to make voluntary payments.

To find out more about what could happen with your particular situation, contact a Licensed Insolvency Trustee. They will sit down with you in a free, no-obligation meeting and discuss your financial situation and the options you have available to you. After the meeting, you’ll have an understanding of your rights, the rights of your creditors, and the solutions that are available to you to fix the debt trouble you have found yourself in.

Find a Licensed Insolvency Trustee in your area and take control of your finances today.