Can I face jail for an unpaid debt?
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No, unless you committed some type of fraud in obtaining the money. The fact is that debtors' prison no longer exits. However, while you won't face jail, you can face a laswsuit if you fail to pay your obligation as agreed.
Legally, either a debt collector or creditor may threaten you with criminal charges. If you have been so threatened, you can sue under the "Fair Debt Collections Practices Act" (FDCPA).
If you feel that your rights have been violated, contact your state's attorney general's office or department of consumer affairs. You can also contact an attorneywho specialize in fighting illegal debt collection practices.