Faced with a difficult financial situation, many people decide to take out a loan. Unfortunately, making this type of decision may result in falling into even greater debts. Some fear that you can go to jail for a loan.
For loans to prison – are these fears justified? Everyone interested in this topic is invited to read the article below. We explain in a very accurate manner what threatens us not paying off loans in a timely manner.
When can you go to jail for a loan?
If we have a large amount of debt, we get nervous and we can’t sleep at night. The constant phone calls of bailiffs and debt collectors can upset anyone. This causes great stress, all the more so because in our country it is very popular to say that you can go to jail for unpaid loans and other liabilities.
For loans to prison? It is important to know that the truth in this respect is somewhat different. As current legislation indicates, it is not possible to go to prison directly because of unpaid debts. However, there are situations that are indirectly related to debt – they can lead to the situation behind bars.
The first such situation may be, for example, constant evasion of paying debts, concealing assets and income. Such situations also include the quick sale of valuable items just to avoid paying off any debts incurred. The Penal Code, and more specifically Article 300 of the Code indicates that “Anyone who, in order to enforce a court or any other state body’s decision, foils or reduces the satisfaction of his creditor by hiding, destroying or removing components of his property, shall be punishable by imprisonment freedom from 3 months to 5 years. ” The law clearly indicates that you cannot sell any material things you own that the bailiff has taken or that are not yet, but may soon be seized by him.
Another situation in which we are at risk of imprisonment
Is gross evasion of paying maintenance. If the debtor continually evades the payment of maintenance and does not look for a job or works in black, then there is a great probability that he will go to prison.
The third case in which you could go to jail is the debts incurred as a result of fraud. We are talking about a situation in which, when we apply for a loan or credit, we knowingly conceal true information about our credit history and our debts.
For example, some decide to provide the lender with counterfeit income certificates or false income statements. For this reason, it is not worth concealing your real current financial situation from the institution that is to grant us a loan or credit. This is because we may be in prison for doing so.