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Non-B Visa Overstay & Consequences

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It seems that when I resigned from my last job and returned the Work Permit back to employer, my work Visa "automatically" cancelled/invalidated as well. I had no idea as I frequently exited and entered the country with no issue since my job ended in September 2012.

Now my visa is due to expire in a couple of days. I understand I will need two passport photos, two full copies of my Visa and a letter from my employer that validates my last day of employment. Then I will need to cancel my current Visa. Is that right? Do you know where I need to do this? U.S. Embassy?

Once my Non-B is cancelled, I can then go outside the country and apply for tourist visa to re-enter.

Firstly, do I understand the cancellation process correctly?

Secondly, I've been advised I will need to pay B20,000 overstay penalty. Is there any other potential penalty I could incur? Do they send decent people to jail for something like this?

Thanks!

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