Can You Go To Jail For Credit Card Debt?

Falling behind on your credit card bills is a common experience that leads people to look for debt relief. Credit card interest keeps growing over time. So if you're struggling to pay your credit cards, it’s better to take action before the situation gets worse. 

Credit card debt relief can be one good way to get out from under a pile of overdue credit card bills. If you’re going through financial stress, you might be wondering about worst-case scenarios—like whether you can go to jail for credit card debt. 

You can't go to jail for unpaid credit card debt. In fact, according to the rules of the federal Fair Debt Collection Practices Act (FDCPA), your creditors can't even threaten you with jail time.

But even though you can’t go to jail for credit card debt, you could still face other legal and financial consequences, such as being sued by creditors or credit score damage. This makes it even more important to know your rights when dealing with past due credit card bills. 

Let’s look at the big picture of why it’s not possible to go to jail for credit card debt, and discuss some tips for protecting yourself from the other consequences of unpaid credit card bills.

This information is intended for general purposes only and shouldn't be construed as legal advice. For personalized legal advice, consult with a qualified attorney licensed to practice law in your area.

Understanding the Legal Difference Between Civil and Criminal Debt

If you get an official letter in the mail telling you that you’re being sued for credit card debt, this might make you feel nervous. Being summoned to court is a serious matter and you might wonder, “Can you go to jail for credit card debt?” 

But don’t worry: credit card debt is not a criminal matter. Even if you have to go to court for unpaid credit card debt, this type of legal problem is handled by civil court, not criminal court. 

Criminal court and civil court are two different kinds of court with different purposes and powers. In criminal court, a case is brought on behalf of the state, by public officials (prosecutors) who represent the government vs. someone who is accused of a crime. If you are convicted of a crime in criminal court, you could be sent to jail depending on the offense.  

But credit card debt is not a crime. Even if you have unpaid credit card debt and you get sued and have to go to court, you won’t be prosecuted or sent to criminal court. Instead, credit card debt lawsuits are handled by civil court. Civil court is for resolving disagreements and disputes between people and businesses. In civil court, a judge can issue court orders and require you to pay your creditors. But civil court cases (almost always) don’t end with jail time. You can’t go to jail for credit card debt alone. 

Credit card debt can only lead to jail time in a few rare cases. Before you can get sent to jail as a result of credit card debt, several mistakes and bad outcomes would need to happen first: 

• Your creditor sues you for unpaid credit card debt. 

• You lose the lawsuit. A judge rules in favor of your creditor and finds you liable for the unpaid debt. 

• The judge orders you to pay your unpaid debts to your creditor as part of a court judgment against you. 

• You fail to obey the judge’s order, and you don’t pay the debt. 

• Your creditor asks the judge to find you in contempt of court. 

Being in “contempt of court” means that a judge has decided that you are deliberately disobeying the order and showing disrespect for the court’s authority. When someone is in contempt of court, the judge has the right to order that person sent to jail. 

Most credit card debt lawsuits won’t end in jail time. Professional debt relief support could help you avoid getting anywhere near that situation in the first place.   

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Debtors’ Prison And Jail For Credit Card Debt: Does It Exist?

Can you go to jail for credit card debt today? No, but once upon a time, you could have been thrown in debtors' prison for unpaid debts. 

Debtors' prison was first used in medieval Europe as a way to punish people who had gotten into debt that they could not repay. In those days, being a debtor was widely viewed as a moral failing, equivalent to doing something bad or illegal. 

The concept of debtors’ prison eventually found its way to the American colonies and remained a part of the U.S. legal system up until the 1800s. Debtors’ prisons were officially banned under federal law in 1833. In 1983, the Supreme Court ruled that debtors' prisons are unconstitutional, in violation of the 14th Amendment. 

Even so, you could face other consequences. If you fail to pay credit card debt, your account could be sent to collections. This means you might start to get contacted by debt collectors from your credit card company, from a collection agency hired by the credit card company, or from a debt buyer that takes ownership of your debt from your original creditor. 

Debt collection calls can feel stressful, but federal laws put limits on what debt collectors can say and do. Debt collectors aren’t allowed to harass or threaten you over debt. That includes threatening you with jail time or any type of legal action they don't otherwise intend to take. However, you're not completely shielded against other types of collection actions. 

When and How Creditors Can Sue You for Credit Card Debt 

Creditors can sue you for credit card debt, but it doesn’t happen right away. Before creditors can sue you, you need to fall behind on your credit card payments. If you don’t make any effort to set up a payment plan or apply for a hardship program, your credit card debt might become delinquent—or seriously overdue. 

Credit card debts that are overdue by 30, 60 or 90 days are treated as delinquent. After 120 days without payment, many credit card companies will send your account to collections or sell your account to debt buyers. This means that you can expect to start hearing from debt collectors. Debt collectors might say a lot of stressful things, and they might even threaten to sue you. But they’re not allowed to threaten you with jail time.

When will credit card companies sue you for unpaid debts? Usually not until you are 180 days delinquent on your credit card bill. After this six-month deadline has passed, some credit card companies or debt collectors might sue you for unpaid credit card debt. 

Here are a few warning signs of a lawsuit for unpaid credit card debt: 

• You’re receiving multiple calls, emails and other contacts from debt collectors 

• You’re receiving letters in the mail demanding payment for unpaid credit card debts 

• You are at least 180 days overdue on your credit card bills

Not every overdue credit card bill ends in a lawsuit. But if you have fallen behind on credit card bills and are avoiding calls from collection agencies, don’t assume you are free from risk of a lawsuit. Even if you tell debt collectors to stop contacting you (which is your right), you should not ignore letters in the mail that are talking about lawsuits and court dates. 

If a creditor decides to sue you for unpaid credit card debt, you can’t run away or ignore this. Creditors can sue you for unpaid credit card debt in small claims court. A creditor might decide to sue you if they've made repeated requests for payment with no success. 

One big mistake that people make with unpaid credit card debt is trying to ignore credit card debt lawsuits. These lawsuits do not go away. If you get a court summons in the mail about your unpaid credit card debt, it’s serious. 

If you don’t show up in court, you might lose automatically—this is called a default judgment. In a default judgment, the judge rules that your creditor is entitled to be paid. The judge can order you to pay the full amount of your debt, plus court fees. The judge could even order your bank to freeze your account and send your money to the creditor who won the case. Or your creditor could win the right to garnish your wages. That means part of your paychecks will be withheld and sent to your creditor until the debt is paid off.  

Even if you get sued for credit card debt, you have rights and options to help defend yourself. You might even be able to get the lawsuit thrown out. Credit card companies have a limited amount of time to sue you, depending on which state you live in. This is called the statute of limitations on credit card debt. 

Statutes of limitations are complicated, but they can help protect you from credit card lawsuits for long-overdue debt. In most states, the statute of limitations on credit card debt is between three and 10 years. If a credit card company wants to sue you, they have to do it within that legal window. If they wait any longer than that, they’re violating your rights and you could ask the judge to dismiss the lawsuit. 

If you get sued for credit card debt, try to make an affirmative defense. An affirmative defense is a reason why the creditor shouldn’t win. For example, your state’s statute of limitations might specify that a creditor has three years from the date of your last payment to sue. So if you made your last payment on April 30, 2024, they'd have until April 30, 2027 to pursue you for payment. Once that date passes, the debt would be time-barred and they'd no longer have the right to win a judgment against you in court.  

That doesn’t mean creditors won’t try to win a judgment. If you ignore a debt lawsuit and a creditor wins an automatic judgment against you, it’s legal and you now owe the money again. The credit card debt statute of limitations no longer applies once they have a judgment. This is one example of why it’s so important to learn your rights and how to exercise them.

In Georgia, the creditor has six years to sue you. In California, the creditor only has four years to sue you. The starting date for this legal window is usually the payment due date that you missed. It could also be the date of your last transaction, or the date of your last payment. So if you make a partial payment, you might start the legal clock all over again. In some situations, making a partial payment on an old, overdue debt is a bad idea, because it can open you up to a lawsuit. 

If you have unpaid credit card debt, you might want to consult with an attorney to work through your options. Some attorneys can help you file bankruptcy to get rid of credit card debt, or help defend you in court from a credit card lawsuit. 

If you get sued for credit card debt, you don’t always have to hire an attorney, but you might want to consult with one. A qualified attorney might be able to teach you about your legal rights and show you how to defend yourself in court, even if you represent yourself. If you can’t afford to hire an attorney, look for free Legal Aid attorneys near you. 

What Happens When the Creditor Wins a Judgment Against You?

Once a creditor obtains a judgment, they can:

• Ask the court to garnish your wages, if your state allows wage garnishments for credit card debt.

• Place a lien against your home or other real property you own.

• Levy (garnish) your bank accounts.

You might be able to avoid a bank account levy if your account only contains protected money, such as Social Security benefits or other government benefits. 

Getting around a wage garnishment can be more challenging if there are no restrictions on garnishments in your state. And the only way to remove a lien is to pay off the debt. A lien could make it hard to sell your home. 

For those reasons, it's important to try and manage credit card debt before you get to the point where a creditor sues. For example, you might consider a debt management plan or seek out professional credit card debt relief programs, either of which could head off a creditor lawsuit. 

Related: Freedom Debt Relief FAQ

What Kinds of Debt Can You Go to Jail For?

While you can't be jailed for credit card debt, there are other situations where you could be locked up for unpaid debts. Generally, there are three categories of debt that you can be jailed for if you fail to pay:

• Court-ordered debts, such as lawsuit settlements, judgments, or restitution.

• Child support or alimony payments that are subject to a court order. 

• Federal and state tax debt, if you're found guilty of tax fraud or tax evasion. 

Court-ordered debts

Failing to pay court-ordered debts can lead to jail, but this typically doesn’t happen automatically. Judges usually won’t send you to jail immediately for failing to pay a debt that they’ve ordered, unless you're found to be in contempt of court or have violated probation or parole. Even then, the court may consider your ability to pay the debt before they send you to jail. 

For example, if you are going through financial hardship or serious medical issues and can prove to the court that you are not willfully disobeying the order, the judge might not send you to jail. If you can make a good faith effort to show your creditor that you’re trying to pay off the debt, the judge might not find you to be in contempt of court. 

But if you have a high income and are buying luxuries and nice cars while flaunting the fact that you haven’t repaid your debt, the judge might not look kindly on this behavior. You can go to jail for failing to pay a debt, but it tends to be limited to more extreme situations. Most struggling credit card customers are not going to end up in jail, even if they lose a lawsuit and get a court judgment against them. 

Child support or alimony

Child support and alimony payments are managed and enforced at the state level. The laws are different depending on the state. But if you fall behind on child support or alimony payments that you owe to an ex-spouse, in some situations you might end up going to jail. 

But just like going to jail for credit card debt, going to jail for unpaid child support and alimony doesn’t happen immediately. Judges will often try to resolve the situation without sending people to jail. 

In the case of court-ordered child support or alimony, you might be subject to a wage garnishment first before jail time is even an option. If you repeatedly ignore court orders to pay child support or alimony, you could be jailed for contempt of court. You might also have to pay fines and court fees on top of what you owe.

Along with the chance of going to jail for unpaid child support or alimony debt, some states like Arizona and California even have laws that make it a crime to fail to pay alimony without a lawful excuse. 

Tax debt

Unpaid credit card debt is a civil matter that is handled in civil court. But if you owe unpaid tax debt to the government, that type of debt can become a crime. Failing to pay taxes could result in jail time at the state level or prison time at the federal level if you're criminally charged with tax evasion or fraud. 

Keep in mind that making an honest mistake on your taxes, owing extra money on April 15, or  even getting audited by the IRS is not a crime. Even if you owe taxes, you can often set up a payment plan with the IRS. There are many ways to solve tax problems without getting charged with a crime. 

But if you have committed tax evasion, failed to file taxes, refused to pay taxes, hidden assets or bank accounts from the IRS, or made false statements to IRS agents, your tax debt could become a criminal matter. But first you would need to be convicted or plead guilty to the criminal tax charges before receiving any jail or prison sentence. Again, you might have to pay court fines and fees as well as the taxes owed. 

What Should You Do if You Are Threatened by a Debt Collector?

If a debt collector contacts you, it's important to first ask them to validate the debt in writing. The FDCPA requires debt collectors to verify that a debt they're trying to collect actually belongs to you. Ask the creditor to validate the debt. 

Debt collectors are required to send you a debt validation notice (or debt validation letter) within five days of their first communication with you. This is your chance to make sure the debt is real and that it belongs to you. If there are mistakes or missing details on the debt validation notice, now is the time to tell the debt collector and defend yourself. After you receive this debt validation notice, you have 30 days to ask questions, request additional information, or dispute the debt. 

You can also request in writing that the debt collector stop contacting you. If you do this, their only next step might be to sue you because they legally can’t contact you to try to collect. It’s not a good idea to close the lines of communication unless you are certain the debt is uncollectible for some reason.

If a debt collector moves on from just contacting you to outright harassing or threatening you, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC). You can report them to your state attorney general's office as well, and file a complaint with the Better Business Bureau. 

If a debt collector persists with harassment, you have the right to sue if you believe they're violating your rights under the FDCPA. Should you win your lawsuit, you could collect a judgment from the debt collector. 

Keeping good records of all communications with debt collectors is key to winning your case. If you're being harassed by a collection agency, it's a good idea to note each time they contact you and what was said. You can also print out emails or make copies of any letters exchanged between you to back up your claims.

Your Rights Under the Fair Debt Collection Practices Act

Falling behind on credit card bills can be stressful, but don’t let it make you feel bad about yourself. Even if you have overdue credit cards, you still have legal rights. You still deserve to be treated with fairness and respect, even when debt collectors are calling. The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects people like you from abusive and illegal actions by debt collectors, debt buyers, and collection agencies.

Here are a few examples of FDCPA protections for people who owe overdue credit card debt:

• Debt collectors can’t contact you before 8 a.m., after 9 p.m., or at inconvenient times of day. 

• Debt collectors can’t call you at work if they know you’re not supposed to take calls at work. 

• Debt collectors can’t harass you or spam you—for example, by sending you massive numbers of texts or repeatedly calling you. 

• Debt collectors can’t use misleading or threatening language—for example, they can’t say they’re going to sue you for credit card debt unless they actually intend to do so.

• Debt collectors have to stop contacting you if you ask them to stop, or if you tell them you have hired an attorney who will communicate with them on your behalf.

If you believe that a debt collector is violating the FDCPA, you can sue them or report them to the Consumer Financial Protection Bureau.  

Practical Steps to Avoid Legal Action

Even if you have fallen behind on your credit card bills, even if you have no hope of paying the full amount that you owe, you still don’t have to end up going to court. You can take action in advance to help avoid a credit card debt lawsuit. Here are a few quick tips for how to prevent credit card lawsuits and avoid the worst-case legal complications. 

Communicate early and often with your creditors

Ideally, you should try to reach out to your creditor as soon as you start having financial trouble, before you miss your first credit card payment. Did you lose your job? Suffer a serious medical issue? Get hit by an expensive car repair? Tell your creditors. 

If you are going through financial hardship, your creditors might help you set up a different payment plan for your credit card debts. Some might even offer forbearance to give you a short-term break on your payments.  

Put it in writing 

If you’re about to miss a credit card payment, or if you’re already falling behind on credit card bills, take careful notes about your situation. Keep a spreadsheet or write down on paper a list of detailed contacts with your creditors—what was said, what was promised, who you talked to, and any other information. 

If your creditor has offered to provide debt relief such as forbearance or a debt repayment plan, ask them to send you the details in writing via email or U.S. mail. Documenting your conversations will help protect your rights and defend yourself in case of a future lawsuit for credit card debt. 

Use proactive debt strategies 

Try to resolve your debt in other ways before it reaches the point of a lawsuit. Debt consolidation can be a good strategy if your credit score is good enough to qualify. With debt consolidation, you can move high-interest credit card debt to a lower-interest balance transfer credit card or personal loan. Reducing your interest rate can make it easier to repay. 

Or if you’re struggling to manage multiple credit card bills, consider talking to a consumer credit counseling agency. They might be able to help you set up a debt management plan to simplify monthly payments while avoiding bankruptcy and lawsuits. A debt management plan could be a good idea for you if you can afford to pay back what you owe but need some help getting organized. 

If you can’t afford to pay back what you owe, debt settlement might be worth exploring. You can negotiate with creditors yourself to settle your debts for less than your balance, or you can work with a debt settlement program like Freedom Debt Relief. Learn more about how Freedom Debt Relief works to decide if it’s right for you.  

When to seek legal help 

Remember: you might not get sued at all for credit card debt. And if you do, the lawsuit won’t happen right away. Usually credit card companies will wait until you are 180 days overdue on your credit card bills before they sue you. And the creditor is required by law to sue you within the statute of limitations—which could be three to 10 years from your last payment date. 

If you get letters in the mail demanding payment, this could be a sign that you are about to be sued. If you get a court summons, don’t ignore it. Open all the mail from your creditors and especially any letters from a court. This could be the right time to talk with an attorney and understand your options to defend yourself against a credit card lawsuit. 

Common Myths about Debt and Jail Time

Myth 1: You can go to jail for not paying your credit card debt

In the United States, you can’t be put in jail for not paying your credit card debt. Even if someone sues you for a debt and you lose, you're unlikely to be sent to jail for it unless other factors are present. For instance, if you violated your probation. 

Myth 2: Debt collectors can have you arrested if you don’t pay

Debt collectors can talk a big, scary talk, but they can't have you arrested. In fact, there’s a federal law that makes it illegal for them to even threaten to do so. They can sue you for the debt, but they can't get the police involved. 

Myth 3: All debts can lead to jail time

You can’t be put in jail for not paying credit card debt, personal loan debt, or even a mortgage (but you’d risk losing the home). That said, some debts could lead to jail, such as court-ordered child support. You could also risk getting locked up if you’re convicted of tax evasion and you owe Uncle Sam. If your debt involves breaking a court order or committing fraud, those are criminal acts that could land you behind bars. Even so, jail is usually the last option after many warnings and legal steps. 

Myth 4: Ignoring a debt lawsuit will make it go away

Ignoring a debt lawsuit is a bad idea and is likely to make things worse. If you don't respond to a summons or show up in court, the judge may issue a default judgment against you. This means an automatic win for the creditor and an automatic loss for you. Then the creditor could garnish your wages or take money from your bank account. Always respond to legal documents quickly. It’s a good idea to talk to an attorney for guidance, even if you can’t afford to hire one to take on your case.

State-Specific Considerations

The kind of legal rights and protections that you have against credit card debt lawsuits are different depending on which state you live in. Some states have stronger consumer protections and shorter statutes of limitations, while other states make it easier for credit card companies to sue and collect for unpaid debts. 

If you believe you might get sued for credit card debt, here are a few state-specific details to watch for. 

Statute of limitations 

The shorter your state’s statute of limitations, the harder it is for credit card companies to sue you for old debt. If you live in a state where the statute of limitations is three years, this means you might get away without getting sued. A longer statute of limitations in your state means that credit card companies have more time to sue you. In some states, even an unpaid debt that is almost 10 years old could still get you taken to court. 

State consumer protections for debtors

Some states have stronger laws to protect credit card customers from lawsuits. For example, some states make it harder for debt collectors and debt buyers to sue people for unpaid credit card debt, while other states require creditors to show information to validate the debt. 

The more steps and rules your creditors have to follow, the less likely it is that they’ll proceed with a lawsuit against you. But in states that make it easier for creditors to sue, your chances of getting sued for unpaid credit card debt might be higher. 

Some states prohibit wage garnishment 

Getting sued for credit card debt doesn’t often lead to contempt of court rulings and the risk of jail. But it can lead to painful financial penalties like wage garnishment or having your bank account frozen or levied. Some states make it harder for creditors to garnish your wages or take money out of your bank account. 

For example, the state of Delaware doesn’t allow bank accounts to be garnished at all. Some other states have higher limits on the amount of money you’re allowed to keep in your bank account, even after being ordered to pay for a court judgment.