Can I go to jail over a credit card?

[MyBoyHarper]

A friend told me I could be put in jail! :shock:I can't go to jail, I'm weak and I have bunnies to feed!

I have a credit card, my first credit card. It's a Citi bank visa cardthat was geared towards college students. I got it about... 6-7 monthsago and my limit was $500. I went over the limit to $518. I didn't havethe money to pay it and they tacked on a $35 late fee and a $35 overthe limit fee that first month. The fee's kept building and it's nowabout $1,000 or so. My PLAN is to take my income tax return, pay itdown to under $500 and resume paying my $20 a month regularfeethat I can actually afford until I get a job. Then I'llpay it all off at once.

My question is, until I can pay some money to bring the fee down, canyou be arrested for a credit card that you aren't paying? My concern isnot having enough income tax money to pay it down under the $500 limit.I've tried talking with the people, and they don't want to work with me.

Anyways, my fear is jail. Can it happen? :shock:I'm theweakest person on earth! Not to mention a diabetic and asthmatic. I'dnever last.

- A worried and nervous (what's new) MBH

 

[Haley]

Im not sure how much thelaws re:collectionvary from state to state, but essentially, no (asfar as Im aware). I can ask my dad if you want, he's an attorney.ButI dont think so.

Basically, if you owe a company $, they have to first prove it beforethey can take any action. First they will usually refer you to acollection agency that will try and get you to pay them back (lots ofthreats, etc). If this doesnt work, they will take you to court. Theyfirst have to file a summons and complaint with the court. You wouldget served with the papers and have 30 days to respond. After that timeperiod, the company could obtain a money judgment against you for thebalance owed plus legal fees.

After they have a judgement, then they can try to take action. If youdont have any equity (car or house) and no job, you dont really havemuch to worry about bc youre essentially uncollectible. It does reallyhurt your credit though. If you were working, they could attempt togarnish your wages, they can also garnish your income tax returns (butagain this would be after a judgement was entered).

Thats about the jist of it. I wouldnt worry too much if you plan onpaying it back soon. Maybe you could contact them and work out a betterrepayment plan?

 

[mambo101]

Don't worry. You won't go to jail. If you doyour plan with the income tax money, you will be fine. Just try to keepmaking the "minimum" payment listed on the bill until you get your taxcheck because you don't want late fees to keep adding up. Go to yourlocal library and look for any books by Dave Ramsey. You are youngenought that if you live your financial life by some of his teachings,you will be fine.

 

[Bassetluv]

What Haley (and Mambo) said...*points up*

I did a bit of looking on the 'net, and found this response written bya legal counsellor to someone who had asked the same question as you:

"Not paying for credit card debt is not a criminal offense, and you cannot be
put in jail solely for not paying it. A credit card company can sueyou, get a judgment, and, depending on which state you live in, may beable to garnish your wages or place a lien against your house and sellit."

Most credit card companies are usually willing to work with theperson to try and find a solution to paying down the debt. If you'rehaving problems talking with someone from the company about it (if theyare giving you a hard time) ask to speak to someone else. You couldalso see if there is option in your area for legal counsel, and findout if you can get someone to represent you in contacting the companyto do some negotiating. While it can feel very overwhelming to befacing a debt, there is always a solution in working out some way ofhandling it...

 

[HoneyPot]

Most companies will allow you to make a "Promiseto Pay". Call them and tell them the situation - tell themyou are a student, this additional fee is making the paymentsunreasonable and it is not within your reach to pay thatback. Ask them to remove the fees if you promise to pay thecard off by XX Date - or at lease to stop putting on the fees until youpay it by that date. Ask for the person's supervisor if theysay they can't do it. There is alway someone who can help youwith those extra fees.

___________
Nadia

 

[nermal71]

No you can't go to jail. But don't be surprised if when you get it under the limit they don't raise your min. payment.