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You cannot be arrested or go to jail simply for having unpaid debt. In rare cases, if a debt collector sues you to collect on a debt and you don't respond or appear in court, that could lead to arrest. The risk of arrest is higher, however, if you fail to pay taxes or child support.
In all of these cases, you will likely receive many warnings and have ample time to address outstanding debts or payment issues before jail time is a possibility. Here's what to know.
What Kinds of Debt Can You Go to Jail For?
It's possible to serve jail time if you've failed to pay your federal taxes or make child support payments. You can't go to jail merely for owing credit card, student loan, personal loan or other types of debt, which we'll explain below.
Federal Taxes
Deliberately not paying or underpaying federal taxes can lead to a prison sentence, but only if you've been convicted of a tax-related crime such as filing a fraudulent tax return or not filing a tax return at all. In 2023, a total of 363 people were sentenced for committing tax fraud, according to the United States Sentencing Commission. Among those convicted and sent to prison, the average sentence length was 16 months.
Child Support
Under federal law, you could be jailed for failure to make child support payments. Sentences can reach up to six months or up to two years, depending on the circumstances. You'll be at risk of arrest if you flee to another state or country to avoid making payments, if payments are more than a year overdue or if you've failed to pay more than $5,000. State laws may also permit jail time for disobeying a court order to pay child support.
Civil Debt
You cannot be arrested or sentenced to prison for not paying off debt such as student loans, credit cards, personal loans, car loans, home loans or medical bills.
A debt collector can, however, file a lawsuit against you in state civil court to collect money that you owe. And if that lawsuit is successful, the judge could issue a court order, called a judgment, requiring you to pay the debt and allowing the creditor to use wage garnishment or other means to collect the debt. (Creditors can seize collateralized property on secured debt such as a mortgage or car loan without going through the court system. The government can also seize your tax refund or paycheck to collect unpaid federal student loans or other government debt, no court judgment required.)
If you're notified that you're supposed to appear in court to face the judgment but you ignore the order, a judge could demand that you be arrested for contempt of court. That means that refusing to obey a court order regarding unpaid debt can lead to arrest, but merely owing the debt itself cannot.
What Is the Statute of Limitations on Debt?
The statute of limitations on debt collection is the limited period of time debt collectors and creditors are given to sue you over past-due debt. This varies by state and the type of debt, but it's typically three to six years. In New York, the statute of limitations on consumer debt is three years, and in California, it's four years. Federal student loans, tax debt and child support in certain states do not have statutes of limitations.
If you're sued over a debt but it falls outside the statute of limitations, the debt may be considered time-barred, or too old, giving you a potential defense in court. A debt collector can also still contact you and try to get payment if the statute of limitations has passed. But you're not required to make payments on time-barred debt. In some states, the clock may even restart if you make a partial payment on the disputed debt.
Learn more >> How Does Debt Collection Work?
What Debt Collectors Can and Can't Do
Debt collectors must comply with the federal Fair Debt Collection Practices Act (FDCPA) when communicating with you and attempting to get payment. It's crucial to understand what's legal and what's not so that you can use all potential defenses available to you in a court case, if required.
What Debt Collectors Can Do
A debt collector can contact you about household debts like credit card bills, auto loans, medical bills, student loans and mortgage payments. They can reach out to you by phone, email, text message, letter or social media private message.
Within five days of initially contacting you, a debt collector must send you a notice outlining how much money you owe, the name of the creditor and your options if you believe you don't owe the debt. The debt collector is allowed to discuss the debt with your spouse, and it's allowed to ask others for your phone number, address or workplace, though it can't specify that you owe money.
What Debt Collectors Can't Do
Debt collectors can't harass you, lie to you or engage in unfair practices. For instance, a debt collector can't threaten to harm you, falsely claim you'll be arrested for nonpayment or threaten to take your property.
Also, they can't contact you before 8 a.m. or after 9 p.m. unless you give them permission. They can't reach out to you at work if you're unable to take calls, and they can't reach out to you in most cases if you've asked them by letter to stop contacting you. They can only call you a maximum of seven times within seven days, and they have to give you a seven-day break from phone calls after speaking with you on the phone.
Learn more >> What Types of Debt Can Go to Collections?
How to Get Out of Debt
There are many actions you can take to steer clear of the worrying consequences of unpaid debt. Try these strategies to get out of debt and avoid adding to the debt you already have:
- Create a budget. Choose a budgeting strategy that will help you keep spending within your means. Making a budget will give you the opportunity to understand exactly how much you're earning and where your money is currently going so that you can make strategic changes.
- Increase your income. You may find that you can't realistically pay down debt on your current income. Consider adding to your income and directing the extra money you earn specifically toward debt payoff.
- Look into debt consolidation. If you have good or excellent credit, you may qualify for a balance transfer credit card or debt consolidation loan that could cut down on interest charges.
- Consider debt repayment strategies. If you have the funds to make debt payments beyond the minimum required each month, try using DIY methods like the debt snowball or debt avalanche to get rid of outstanding balances one by one.
- Ask your family for help. There is no shame in asking for help to pay down debt, especially if it's affecting your mental health or other aspects of your life. You can even draw up a contract with the person who lends to you and repay them within a realistic time frame that you both agree to to safeguard your relationship.
- Work with a credit counselor. Nonprofit credit counselors offer free and low-cost help to borrowers who need help getting rid of debt. They can give you tips on everything from budgeting to negotiating with creditors, and can set you up with a debt management plan for a fee if that's what's best for you.
The Bottom Line
It's not possible to go to jail simply for having unpaid debt. It also requires many steps along the way before an arrest for contempt of court is possible: The creditor must first sue you and win the lawsuit, and then the judge must award a judgment against you. The judge would only issue an arrest warrant after you've failed to respond throughout this process or appear for court cases.
You have rights that protect you and multiple ways to get help, including working with an attorney through your local legal aid organization. With a plan in place and the right support, you can get out of debt and limit the risk of a lawsuit altogether.