We will find a lot of information on how to get out of debt and who to turn to in situations of excessive debt. We know what banking products are offered to people whose sum of monthly installments exceeds their financial capabilities and in their current form, are unable to pay all their liabilities in a timely manner.
We focus primarily on the state of our finances and the effects of excessive debt on our home budget. We can also hear about the fact that financial problems and debts in the form of numerous credits or loans are also negative consequences for our health and well-being. However, we have never raised another very bothering issue. Namely, can you go to jail for debts?
Unpaid loan and credit installments
Of course, we raise the topic in a matter that directly relates to our field, i.e. loans, loans or payday loans. Let’s start our considerations with late payments. Do the law impose other negative consequences on us for late repayment of bank obligations, rather than interest on late repayment of installments? Can I go to jail for debts?
Whether we like it or not, there is no prison sentence for debts for unpaid installments. We do not wish anyone this situation and we hope that this question will not be a nightmare, but we can unequivocally say that imprisonment will not be imposed for unpaid installments of loans, loans or payday loans. Of course, in no case can it be a signal that everyone, regardless of the situation in which they are, can incur a liability, because apart from interest is not subject to any other penalty. This still does not absolve us from a thorough analysis of our situation, fully aware and responsible decision-making about our future financial liabilities in the bank and loan institutions.
However, unpaid installments for loans and borrowings are not enough. There are situations in which assuming a financial commitment may result in negative consequences in the form of imprisonment for debts. Can I go to jail for debts?
When is taking a loan or loan at risk of being imprisoned for debts?
Can I go to jail for debts? We already know that we will not go to jail for unpaid obligations. However, there are also credit and loan situations that are punishable by imprisonment for debts. One of these cases is specified in Article 297 of the Penal Code, which reads: Who, in order to obtain for himself or someone else, from a bank or an organizational unit conducting similar economic activity pursuant to an Act or from a body or institution with public funds.
A loan, loan monetary, surety, guarantee, letter of credit, subsidies, subsidies, confirmation by the bank of the obligation arising from the surety or guarantee or similar cash benefit for a specific economic purpose, payment instrument or public contract, submits a counterfeit, altered, certifying untruth or unreliable document or unreliable, a written statement regarding circumstances of material significance for obtaining the said financial support, payment instrument or order, shall be punishable by imprisonment from 3 months to 5 years.