Question: If I have an unpaid credit card balance, will I be arrested?

Answer:

The fear of arrest due to unpaid credit card balances is common but often misunderstood. In the context of Philippine law, it is crucial to clarify that "debtor's prison" has long been abolished, and non-payment of credit card debt is generally considered a civil matter, not a criminal one.

Is Non-Payment of Credit Card Debt a Crime?

No, non-payment of credit card debt is not a criminal offense under Philippine law. You can't be arrested solely for having an unpaid credit card balance.

What Can Creditors Do Then?

Collection Efforts: Credit card companies will typically employ various methods to collect the debt, such as calling or sending letters.
Legal Action: The creditor may file a civil case for the collection of sum of money. If they win the case, the court may order the sale of your properties to settle the debt.
Small Claims Court: For smaller amounts, the creditor might go to Small Claims Court for faster resolution.

What Should I Do if Faced with Legal Action?

Consult a Lawyer: As soon as you receive a summons, consult with a lawyer to guide you through the legal process.
Negotiate: Often, credit card companies are open to negotiating payment terms.
Court Appearance: If a case is filed, make sure to attend all court hearings to avoid default judgment.

Can a Creditor File Criminal Charges Against Me?

Creditors might attempt to file criminal charges like estafa or violation of the Access Devices Regulation Act. However, jurisprudence has generally favored the view that unpaid credit card debts are civil in nature.

Conclusion:

While being in debt is certainly stressful, the fear of arrest for unpaid credit card balances should not be an added concern in the Philippines. However, that doesn't mean one should ignore the debt; legal actions can still be taken by creditors that may affect your financial stability and property. Legal consultation is advisable to guide you through the complexities of such situations.