if you default on a personal loan the lender can get a judgment against you and the sheriff can seize goods to the value
Interesting query from a financial advisor - considering adding this option to your portfolio?
Correct ivor james. Anybody who says otherwise doesnt understand and is subscribing to popular belief. It pretty shameful the way some media protray defaulters imprisonment such as:
"poor Mary seperated mother of six jailed for 5K debt to Credit Union"
In reality efforts and corrspondance were made by the creditor over a number of months (which are normally ignored by Mary) to get a repayment plan set up. Eventually it goes legal and a Summons is issued.
Again this Mary ignores this, judgment is filed in default , examination is ordered, an Installment Order is made by the Judge (which Mary again ignores) so eventually a Committal Order is made by the Judge which basically puts Mary in prison for up to 3 months until she purges her contempt (ie. make efforts to repay the money as ordered by the court)
Thats how it works.
No-one goes to jail for default on a loan ,but you may if you are in contempt of a court order,for example not meeting an installment plan layed out by the judge,it is important at all times to communicate and do not ignore as then you are in a real dangerous situation.
Did they get their money, if people go to jail it means they are not going to pay surely or am I missing something ?We live in a civilised society so basically the reason this happens is to allow creditors a mechanism to recover their money without resorting to vigilante tactics.
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