By: Daniel Stone
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Can I go to jail for not paying my creditors?
Article written by Columbia, SC bankruptcy attorney Daniel Stone
I am sometimes asked by my new bankruptcy clients if they are going to jail for unpaid debts. Fortunately in the United States, unless you fail to pay some debts I will discuss in the next paragraph, we do not have debtors prisons in America. Can you imagine that? We would all be going to jail! Creditors have their form of relief in our judicial system but it is in the Civil Courts – not Criminal.
However, as discussed above, we all know of certain debts that we must pay or we could be in danger of going to jail. Examples are child support, tax debts, and contempt orders. In South Carolina, I want to alert you readers that if there are ever served with a Court hearing before an Equity Judge to appear at a Supplemental Hearing, you have to attend this hearing. Failure to attend could land you in jail. Please not that it would be your failure to attend the hearing that would land you in jail – not that you failed to pay a debt.