What Happens to Your Property If You Go to Jail?

Generally, it takes several months between the time of an arrest and conviction for felony cases in the United States. You should safeguard your property and monetary assets before you begin serving a sentence. Take care of these necessities when you are out on bail or before a plea deal. If you are facing time in prison, an experienced lawyer can help protect your property.

WHAT HAPPENS TO MY BILLS IF I GO TO JAIL?

Going to jail does not free you from your financial obligations. Your real property, houses, boats, and cars are all subject to foreclosure and/or repossession if those bills are unpaid. There may be an option for you to work with the lender or creditor for a short-term reduction in payments or receive a grace period while you’re incarcerated. Contact them and explain your situation.

WHAT HAPPENS TO MY MONEY IF I GO TO JAIL?

Your monetary assets will remain in their respective accounts, depending upon the crime committed. Some banks may put a hold on your account while you are in jail because you will not be able to directly manage your funds.

The government may freeze all or some of your assets if it believes you have benefited financially from a crime. These government seizures may serve as restitution for financial fraud victims, fines or penalties the court levies, or compensation for unpaid or back taxes.

HOW DO I MANAGE MY MONEY IN JAIL?

It’s important to assign a trusted friend, family member, accountant, or attorney to oversee your finances while you are in jail. In most states, a power of attorney is a simple document that can relinquish control to one person or business entity for a stipulated duration of time to oversee a well-defined area of your financial needs. You can have the document voided or revoked once you are out of jail.

WHAT ABOUT MY HOUSE?

If your jail or prison sentence is more than a year, you should free yourself legally from any property lease. This holds true even if you are renting with a spouse or partner and intend to return after your sentence is complete. You don’t want to have to pay rent or incur further legal consequences for failing your lease obligation while you’re jailed.

You should be fine if you own your home and have the funds available to have the mortgage and taxes paid while you are in jail. In most states, you’ll have between two and three months before a bank can initiate foreclosure proceedings. Banks typically lose a significant amount of money on foreclosures, so if you stay in front of the situation and communicate with your lender – a bank will usually work with you to restructure the loan and lower the payments. Do not avoid contacting your mortgage lender if you’re facing an upcoming incarceration. Communication and honesty about the situation is more likely to lead to a favorable outcome if you own your home and are worried about paying your mortgage while serving time.