Many debt collectors wonder if this path will ever lead them to prison. Theoretically NO. The Penal Code does not define a situation that could send the debtor to prison. You don’t go behind bars for having financial arrears. Just having overdue financial obligations is not a crime in our country. And this applies to both outstanding credit and loan obligations or payday loans. Having debts is not a crime, but avoiding them can be defined as such. There are many circumstances related to debt that can result in a prison sentence.
For loans to prison
The debtor may expect a prison sentence if he has obtained a bank loan or loan from any company operating on the financial market by fraud. This type of fraud includes any act of concealing the truth or falsifying it for the purpose of taking out a loan or credit. Fraudsters usually submit counterfeit income and employment certificates. Crafted certificates, enabling the borrower to obtain a loan, automatically, pursuant to Article 297 of the Penal Code, make him a fraudster who is extorting a loan for which he is punished with imprisonment.
For the loan goes to jail anyone who extorts a loan on the basis of:
- a counterfeit document, which is not true but looks like the original
- a converted document, i.e. a real and modified document, which looks like the original
- a third party document, i.e. a real one, but belonging to another person, obtained voluntarily or without the consent of the owner
Article 300 of the Penal Code describes situations where the debtor, aware of the consequences of not paying his debts, makes efforts to dispose of the property in a hurry. Very often, indebted persons, in the face of bailiff execution and other problems related to it, decide to transfer their property to their wife, children or other family members. They also sell real estate or other assets quickly. Of course, in this case, the prosecutor must prove guilty of deliberate planning and action to reduce personal property.
Crimes aimed at concealing property also include taking its components to an extended family or other people not already related to the debtor to prove that they never owned them. For loans to prison , you also get the money you receive in the workplace or receive it in full or in part without being documented. The latter actions are used to hide income in the light of issued bailiff orders occupying part of the monthly salary.
Prison for maintenance
Article 209 of the Penal Code indicates further circumstances when the debtor goes to prison . This will happen in the event of late payment of maintenance. It is enough to be late with the payment of maintenance for three consecutive months to get behind bars. Prison can be avoided if all the resulting debt is repaid within one month of receiving the request for payment. Otherwise, the debtor faces a fine and a prison sentence.