Internet's first get-out-of-debt community - 135,000 members

Posted: Thu Dec 21, 2006 8:59 am Subject: Is there a Debtor Prison?

If I owe Paypal, a few banks (through overdrafted accounts), electric company, a cell phone company, and my student loans which are in default, can I be thrown in jail? I am trying my hardest to fix this but these stupid calls don't stop. Just wondering if for any of that can they throw you in jail? Would I get a letter saying there's a lawsuit or something against me? Or can they just pick me up? Thanks!

Posted: Thu Dec 21, 2006 9:06 am Subject:

No on jail, it's a civil matter. Yes on law suit. Creditors can get a judgment against you and eventually put liens on your property, garnish your wages and all kinds of bad stuff if you don't defend yourself. Read through all of these posts. There is a lot of good information throughout this web site and lots of resources. Plus, this site has credit counselors that you can speak with and they will be happy to help you out. Just get smart on dealing with creditors so that you will not be so intimidated and YOU can take control when dealing with them.
good luck

Posted: Thu Dec 21, 2006 9:07 am Subject:

In a word, no. There is no debtor's prison. However, your situation is not a good one, and you could wind up with several judgements against you, which could lead to your paycheck being garnished. I would advise you to discuss this with a debt counselor ASAP to get this resolved. Please keep us posted on your progress.

Posted: Thu Dec 21, 2006 9:14 am Subject: I have spoken with

I have spoken with someone, and I was told ALL that could be done is MAYBE be helped with some of my school loan debt, which, of course, is also in default. I am sure that would help but at this point, it would just help more if I got a forebearance or consolidated. But I want to fix this myself, how do I go about it? i've spoken with the banks, and they told me that they could go ahead and let me pay it off little by little. I got a print out that says what I owe and the persons card stapled to it.

Posted: Thu Dec 21, 2006 9:34 am Subject:

Welcome to the Forums Very Happy

If the banks told you they would work with you, I would start on paying them back. My son overdrafted his account and got a letter from an attorney. We went to the bank and talked to them and they let him pay it off. Alot of creditors will work with you if you call them and explain that you are trying to get on track, rather than ignore it.In consolidation, you can put all your unsecured debts into one payment with lower interest. Someone will contact you and discuss options with you. Keep us posted..Karen

Posted: Thu Dec 21, 2006 7:36 pm Subject:

Definately no on Debtor's Prison--(so Dickens!!). Lawsuits are a real possibility and I would run, not walk to a debt consolidator and get started ASAP.