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Some so-called assuming paralegal experts assume that debts are not that serious. If you think going to prison and creating a bad image for yourself for not paying your dues on time is not a reason for you to be prisoned be imprisoned behind bars, think again. This article from Pinoy Entrepreneur is an awakening to the legal process that awaits those who are intentionally not paying their debts.

Of course, you can’t be imprisoned simply because of debts. The title is merely meant to get your attention and to highlight the fact that certain collection agencies threaten to file criminal cases against debtors who fail to pay. The prohibition against imprisonment for a debt is a basic right enshrined in no less than the Constitution: “No person shall be imprisoned for debt or non-payment of a poll tax.” In other words, no one could be compelled to pay a debt under pain of criminal sanctions (estafa is a different matter). No one could also substitute the payment of debt through imprisonment or other criminal penalties.
Bouncing checks. Certain laws, including Bouncing Checks Law (BP 22), have been questioned as a violation of this right. However, it’s not the non-payment of an obligation which this law punishes. The law isn’t designed to coerce a debtor to pay his debt. The thrust of the law is to prohibit, under pain of penal sanctions, the making of worthless checks and putting them in circulation. Checks have become widely accepted as a medium of payment in trade and commerce, and if the confidence in checks is shaken, the usefulness of checks as currency substitutes would be greatly diminished. When the question was resolved in 1986, it had been reported that the approximate value of bouncing checks per day was close to 200 Million Pesos, thereafter averaging between P50 to P80 Million a day. (Lozano vs. Martinez)

Trust receipts. The same argument was raised against the Trust Receipts Law (PD 115), which is a declaration by the legislative authority that, as a matter of public policy, the failure of a person to turn over the proceeds of the sale of goods covered by a trust receipt or to return said goods if not sold is a public nuisance to be abated by the imposition of penal sanctions. It punishes the dishonesty and abuse of confidence in the handling of money or goods to the prejudice of another. The law does not seek to enforce payment of a loan. (Tiomico vs. CA)

Credit cards. Under the Access Devices Regulation Act of 1998 (RA. 8484), anyone who obtains “money or anything of value through the use of an access device, with intent to defraud or with intent to gain and fleeing thereafter” is criminally liable, punishable with a fine and imprisonment. That law also provides that a cardholder who abandons or surreptitiously leaves the place of employment, business or residence stated in his application or credit card, without informing the credit card company of the place where he could actually be found, if at the time of such abandonment or surreptitious leaving, the outstanding and unpaid balance is past due for at least 90 days and is more than P10,000.00, shall be prima facie presumed to have used his credit card with intent to defraud.” We are still waiting for the test case on this.

Here’s the source of this article “YOU CAN GO TO PRISON FOR YOUR DEBTS.”