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Prison for outstanding loans? Is it possible?

People struggling with debts sooner or later ask themselves whether arrears can result in imprisonment. It is often the case that debt collectors threaten debtors with such information. In the meantime, it’s good to know about the real risks of unpaid payments. Prison is a place where you can find out for various crimes, including financial ones. Learn more about this topic. We will describe all this in this article.

Can I go to jail for debts?

Can I go to jail for debts?

At the very beginning of the discussion, it is worth emphasizing that arrears against creditors cannot result in imprisonment. However, you should expect that those whose task is to recover the debt will call and visit us. These people cause anxiety to creep into life and we try to avoid contact with them at all costs. However, this is not the best solution. It turns out that at a later stage of the proceedings you will also have to face the bailiff. This justice representative has the power to seize a bank account. This in turn effectively hinders the performance of ordinary activities such as shopping. That is why it makes no sense to allow for large debt. However, if this happens, it is worth doing everything not to fall into serious debts. Ways to avoid it are described in the article How to avoid a spiral of debt? It explains what actions are worth taking to enjoy a good financial situation. It is good to know all these ways and gradually implement them.

Prison for debts – important information

Prison for debts - important information

We have already mentioned that in the light of Polish law the debtor cannot go to custody. However, there are a number of actions that inevitably lead to the courtroom. It is about evading debts. It is an offense that involves concealing income or assets. The same is perceived getting rid of material things that could be subject to bailiffs. All this was recorded in the Criminal Code. One of the paragraphs of article 300 reads as follows: “Who, in order to thwart the execution of a decision of a court or other state authority, foils or diminishes the satisfaction of his creditor by removing, concealing, selling, donating, destroying, actually or apparently encumbering or damaging ingredients of his property seized or threatened with attachment, is subject to the penalty of deprivation of liberty for a term of between 3 months and 5 years. “Thus, it is understandable that the conscious action to avoid paying the debt results in placing you in a cell. It is good to be aware of this so that you do not bring yourself serious trouble. It turns out that many people acting under the influence of stress and pressure unknowingly make a mistake that has deplorable effects. Interestingly, you can also be sentenced to prison for unpaid alimony. The Polish legislator assumed that this act would be punished in exactly the same way as evading repayment of outstanding loan installments.

Prison sentence for debts in the penal code

Prison sentence for debts in the penal code

You must be aware that placement in a prison can be the result of fraud. Anyone who testifies untruthfully when applying for a loan is exposed to such danger. A person who presents false earnings statements faces unpleasant consequences. It also often happens that the scammer presents a fake employment certificate. Then it also falsifies its image in the eyes of the credit company. This, in turn, often causes financial assistance to be obtained by those who are finally unable to meet the repayment of their debt. This applies to both small financial liabilities such as payday loans and those for very high amounts (mortgage loans). Therefore, it should be remembered that according to one of the articles of the Criminal Code, for certifying untruth in order to obtain money, there is also a penalty of imprisonment from 3 months to 5 years.

There is a risk of imprisonment for debts – other cases

There is a risk of imprisonment for debts - other cases

Something else is a punishable act indirectly related to unpaid payments. It’s about forcing a third party to make the wrong decisions about managing their finances. Article 86 § 1 of the Criminal Code reads: “Who, in order to achieve financial gain, leads another person to an unfavorable disposition of his own or someone else’s property by means of misleading him or by making an error or inability to properly comprehend the act taken, shall be subject to the penalty of deprivation of liberty for 6 months up to 8 years. ”This means that influencing third party decisions is the most serious of all offenses. Interestingly, you also need to beware of unpaid fines. Payment from them may also lead to custody as a last resort. The whole process, however, is quite complicated and multistage, so it is the subject of another publication.

It is already known that debts cannot be the direct cause of prison sentence. However, you need to watch out for some criminal acts that can lead to this. They are somewhat related to debts, so keep them in mind. Prison is nothing good, so watch your finances so that you don’t find yourself in it.