Legal Question in Credit and Debt Law in Indiana

Can you be sent to jail for defult on a personal loan?

Can you send a person to jail for defult on a personal loan if the ''lender'' got the cash off their personal credit card and used that money to loan the other person (receiver). This person never had any access to the credit card themselves. They recieved only the cash for the loan! There was an agreement to pay back the loan, but it is in defult. Can they be charged with fraud for failure to repay this personal loan. Also what is the statue of limitations on such a personal loan?


Asked on 7/17/02, 7:56 pm

1 Answer from Attorneys
John Bator Bator Redman & Shive

Re: Can you be sent to jail for defult on a personal loan?

You cant put someone in jail for failure to pay a debt absent the commission of a crime.The failure to pay a loan back is a criminal offense.

The statute of limitations is 6 years for breach of contract.

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Answered on 7/18/02, 3:48 pm


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