Can You Go to Jail for Not Paying a Judgment?

If you’ve been sued and lost the case, a court judgment may now require you to pay a debt. But what happens if you can’t afford to pay? Can you go to jail for not paying a judgment?

No, you cannot go to jail simply for failing to pay a civil judgment. However, you can face serious legal and financial consequences—especially if you ignore court orders or fail to appear in court related to the debt.

At Kostopoulos Bankruptcy Law, we help clients across Michigan and Illinois understand their rights when dealing with court judgments, wage garnishments, and creditor harassment. Here’s what you need to know.

What Is a Judgment in a Civil Case?

A judgment is a legal order from a court requiring you to pay money to a creditor. It usually follows a lawsuit where the court finds you liable for a debt or damages.

Judgments may result in:

Wage garnishment
Bank account levies
Property liens

Once entered, a judgment can remain enforceable for 7–10 years and may be renewed.

Can You Be Arrested for Not Paying a Judgment?

No. Failing to pay a civil debt is not a criminal offense. You cannot be arrested for being unable to afford a judgment.

However, you may be arrested if you:

Ignore a court summons related to a judgment (e.g., debtor’s examination)
Fail to appear in court when ordered to do so
Violate a court order related to debt collection

These are contempt of court issues—not punishment for nonpayment itself.

What Happens If You Don’t Pay a Court Judgment?

If you don’t pay a judgment, the creditor can pursue legal actions to collect, including garnishments, levies, and liens.

Consequences of ignoring a judgment include:

Wage garnishment: A portion of your paycheck may be withheld
Bank account levies: Funds can be seized directly from your bank
Property liens: A lien may be placed on your home or other assets

These actions can happen without further notice after a judgment is entered.

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What Are the Different Types of Judgments?

Judgments can be categorized into types such as default, stipulated, satisfied, and renewed—each carrying different legal consequences.

Default judgment: Entered when you fail to respond to a lawsuit.
Stipulated judgment: Both parties agree to terms before trial.
Satisfied judgment: Debt has been paid in full.
Renewed judgment: Extended beyond the original 7–10 years.

Understanding your judgment type helps determine your options for appeal, settlement, or enforcement.

Can You Be Jailed for Missing a Debtor’s Exam?

Yes, in some states, failure to appear for a debtor’s examination can result in a bench warrant for your arrest.

A debtor’s exam is a court-ordered meeting where the creditor asks questions about your income, assets, and ability to pay.

You may be arrested if you:

Are properly served a summons for a debtor’s exam
Ignore the court order and fail to appear
Do not respond to post-judgment discovery requests

This is not jail for debt—but for contempt of court.

Can a Judgment Lead to a Property Lien or Asset Seizure?

Yes. A creditor with a valid judgment can place a lien on your property or seize non-exempt assets to satisfy the debt.

Common enforcement methods include:

Real estate liens recorded with the county clerk
Levying vehicles or business equipment
Garnishing investment accounts (in certain cases)

State exemptions may protect some assets—consult a bankruptcy lawyer to know your rights.

Are There Any Debts That Can Lead to Jail Time?

Yes, but only specific types of debts, like unpaid child support, criminal fines, or tax evasion, can lead to incarceration.

You cannot be jailed for:

Credit card debt
Medical bills
Personal loans
Court judgments from civil lawsuits

But you may face jail time for:

Ignoring a court order to pay child support
Willful tax fraud or evasion
Violating probation or restitution terms

These are exceptions involving criminal or quasi-criminal behavior.

What Happens If a Defendant Does Not Pay a Judgment?

If a defendant does not pay a judgment, the creditor can pursue legal enforcement actions such as wage garnishment, bank levies, or property liens.

The court does not automatically collect the judgment. Instead, the creditor must take steps to enforce it through legal channels. Interest may also accrue on unpaid balances.

Ignoring a judgment does not make it disappear—it increases the risk of aggressive collections.

What Happens If a Creditor Sues You and You Can’t Pay?

If a creditor sues you and you can’t pay, the court may issue a judgment against you, and the creditor can begin collections through garnishments or liens.

You won’t be jailed, but the consequences may include damage to your credit, seizure of assets, or wage garnishment. Bankruptcy may be an option to stop or discharge the debt.

Consulting an attorney early can protect your rights and help you avoid a judgment.

What Kind of Debt Can You Go to Jail For?

You can only go to jail for debts tied to criminal penalties, child support violations, or contempt of court—not for ordinary consumer debt.

Examples of debts that may lead to jail include:

Unpaid child or spousal support
Criminal fines or court-ordered restitution
Willful tax fraud
Violating a court order to appear or provide information

Jail time results from disobeying court orders—not from owing money itself.

Do Judgments Affect Your Credit Report?

Yes. A civil judgment can remain on your credit report for up to 7 years and damage your credit score.

Even if paid, a judgment:

Signals financial instability to lenders
May appear on background checks for jobs or housing
Can impact your ability to qualify for loans or credit cards

Removing a judgment from your credit report may require proof of satisfaction or court order.

Do Judgments Accrue Interest Over Time?

Yes. Judgments in most states accumulate interest from the date they are entered, increasing the total balance owed.

Michigan and Illinois both allow post-judgment interest
Interest rates are set by statute and may vary annually
Compounded interest can significantly inflate debt over time

Paying early or settling quickly can reduce how much you ultimately owe.

What Happens If You Win a Lawsuit and They Refuse to Pay?

If you win a lawsuit and the losing party refuses to pay, you must take additional steps to enforce the judgment, such as garnishing wages or seizing assets.

The court won’t collect the money for you—you’ll need to file enforcement actions and potentially conduct a debtor’s examination to locate assets.

A judgment is only the beginning—collection may require ongoing legal action.

How Can Bankruptcy Stop a Judgment?

Filing bankruptcy can stop collection efforts on most judgments and may even wipe out the underlying debt.

Bankruptcy Protections:

Automatic stay: Immediately halts wage garnishments and bank levies
Discharge: Eliminates your personal liability for qualifying debts
Lien avoidance: May remove certain judgment liens on exempt property

Not all judgments are dischargeable—consult a bankruptcy attorney for review.

When Should You Talk to a Bankruptcy Lawyer About a Judgment?

If you’re facing wage garnishment, asset seizure, or creditor harassment from a judgment, it’s time to speak with an attorney.

You should call a lawyer if:

You can’t afford to repay the debt
You’re being threatened with legal action
You’ve received a summons or court notice
You want to explore options like Chapter 7 or Chapter 13 bankruptcy

Kostopoulos Bankruptcy Law can evaluate your case and help you stop judgment collections.

Call Kostopoulos Bankruptcy Law for Immediate Help

Don’t wait until a creditor seizes your paycheck or bank account. Call (877) 969-7482 today for a free consultation with an experienced bankruptcy attorney.

We help clients across Michigan and Illinois stop garnishments, eliminate judgments, and regain financial control. There’s no obligation and no fee unless we file.

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FAQs About Unpaid Debt Penalties

Can a creditor put you in jail for not paying?

No. Private creditors cannot jail you. Only failure to follow court orders may result in jail.

Can I go to jail for not paying a medical bill?

No. Medical debt is civil, not criminal. You may face a judgment, but not jail.

Can a judgment be removed through bankruptcy?

Yes. Bankruptcy may discharge the debt and, in some cases, eliminate the judgment lien.

What should I do if I receive a court summons related to a debt?

Do not ignore it. Show up in court or consult an attorney immediately to avoid default judgments or arrest.

How long can a judgment stay on your record?

In most states, 7 to 10 years. Some can be renewed for longer periods.