Understanding Debt and Legal Consequences
Armando owes approximately 60,000 pesos to a department store and his income is insufficient to cover this debt. In May, he fell into arrears, and immediately began receiving threats, including the possibility of going to jail if he did not settle his outstanding balance.
He is not refusing to pay; instead, he seeks a restructuring of his credit that aligns with his income. This agreement has yet to materialize. Can he go to prison for this debt?
The Reality of Debt Among Millions
Like Armando, millions of people struggle with credit card debt, mortgages, car loans, or personal and salary loans. According to the National Health Financial Survey (ENSAF), 36.2% of the population aged 18 and over has some type of debt. Of this group, 17.1% consider their level of indebtedness to be high or excessive, while 48.9% perceive it as moderate.
Expert Clarification on Debt and Imprisonment
Ángel González, General Director of the National Organization for Debtor Defense, clarifies that no individual can be imprisoned for a civil debt, which is owed to an individual such as banks, popular savings and loans, auto agencies, department stores, usurers, or swindlers.
“Collectors love to threaten people by saying they’ll put them in jail if they don’t pay. People imagine themselves in an orange jumpsuit because they didn’t pay their credit card, loan, car, or mortgage. Is this possible? No. Article 17 of the Constitution clearly states that no one can be imprisoned for civil debts,” González explains.
Owing 1,000 pesos, one million, ten million, or twenty million does not result in imprisonment. “Debts are not a crime; debt is not a crime,” he emphasizes.
However, González encourages people to fulfill their financial obligations according to their means, as failure to do so may lead to other consequences and measures, such as a poor credit rating and foreclosure, following judicial orders.
When Can You Go to Jail for Debt?
David Cordero, a licensed professional, explains that while imprisonment for debt is not common, certain situations can lead to it when the debt is considered a criminal offense.
- Fraud: Providing false information to obtain credit, writing a bad check without funds, or misappropriating assets before settling them can all be considered fraud according to Article 386 of the Federal Penal Code.
- Government Debts: In rare cases, imprisonment may occur for owing money to the government, especially taxes, following a thorough analysis concluding in fraud.
Key Questions and Answers
- Can I go to jail for not paying a debt? No, you cannot be imprisoned for civil debts owed to individuals or entities. Article 17 of the Mexican Constitution explicitly states that no one can be imprisoned for civil debts.
- What types of debt can lead to imprisonment? Imprisonment is possible in cases of criminal offenses related to debt, such as fraud (providing false information for credit, writing bad checks, or misappropriating assets) and specific government debts following a fraud analysis.
- What should I do if I cannot pay my debts? It’s essential to communicate with creditors and seek debt restructuring options that align with your income. While imprisonment is not a consequence of civil debt, failing to pay may result in other negative outcomes like poor credit ratings and foreclosure.
