Credit cards are become a need in our daily life. They provide convenience and adaptability in terms of payment options. However, there may be severe repercussions if credit card payments are not paid. The question that emerges is whether credit card debt in India is punishable by imprisonment.
No, you cannot be imprisoned in India for failing to make credit card payments. However, you will experience a bad influence on your credit score, and your creditors might sue you. There are no debtors’ prisons in India, thus you cannot be detained for not paying your debts. You can nevertheless be the target of legal actions including lawsuits, wage garnishment, and asset seizures.
Business-to-business (B2B) collections are those where debts owed by one business to another are collected. There are many debt collection companies in India that focus on B2B collections. These organizations assist companies in recovering unpaid debts from other companies.
Although it is conceivable, it is not a good idea to purchase other people’s debt. Before making an investment in debt, you must conduct thorough research because it is a risky venture. Debt collectors attempt to recoup the entire amount owed after buying loans at a discount. However, debt buyers are frequently perceived as aggressive, and their methods could be dubious.
You cannot purchase your own debt. To settle your debts for less than the whole amount owing, you might be able to bargain with your creditors. Debt settlement is what it is called, and it may be a good choice for people who are having trouble paying their bills.
The original creditor may sell the debt to a debt buyer or collection company. After then, the debt buyer or collection agency tries to collect the debt from the debtor. If a debt buyer or collection agency is successful in retrieving the full amount owed, they will benefit because debt can be sold for a fraction of what is owed.
In conclusion, even while not paying credit card debt in India won’t land you in jail, it’s still crucial to do so to prevent legal trouble and damage to your credit score. Businesses frequently use B2B collections to recover outstanding debts, and purchasing debt can be a risky investment. For those who are having trouble making their payments, debt settlement may be a possibility. In addition, debt might be sold to debt buyers or collection firms.