Is it possible to be arrested for debt?
Date: Wed, 06/23/2010 - 03:23
Submitted by Chrys Henderson
on
Wed, 06/23/2010 - 03:23
Total Replies: 5
It seems, especially in Minnesota, that this very thing is happening more and more often:
"http://www.startribune.com/local/95692619.html"
Quote:
It's not a crime to owe money, and debtors' prisons were abolished in the United States in the 19th century. But people are routinely being thrown in jail for failing to pay debts. In Minnesota, which has some of the most creditor-friendly laws in the country, the use of arrest warrants against debtors has jumped 60 percent over the past four years, with 845 cases in 2009, a Star Tribune analysis of state court data has found. Not every warrant results in an arrest, but in Minnesota many debtors spend up to 48 hours in cells with criminals. Consumer attorneys say such arrests are increasing in many states, including Arkansas, Arizona and Washington, driven by a bad economy, high consumer debt and a growing industry that buys bad debts and employs every means available to collect. |
How often are debtors arrested across the country? No one can say. No national statistics are kept, and the practice is largely unnoticed outside legal circles. "My suspicion is the debt collection industry does not want the world to know these arrests are happening, because the practice would be widely condemned," said Robert Hobbs, deputy director of the National Consumer Law Center in Boston. |
Nearly all of them had received court judgments for not paying a delinquent debt. One by one, they stepped forward to fill out a two-page financial disclosure form that gives creditors the information they need to garnish money from their paychecks or bank accounts. This process happens several times a week in Hennepin County. Those who fail to appear can be held in contempt and an arrest warrant is issued if a collector seeks one. Arrested debtors aren't officially charged with a crime, but their cases are heard in the same courtroom as drug users. |
Three debt buyers -- Unifund CCR Partners, Portfolio Recovery Associates Inc. and Debt Equities LLC -- accounted for 15 percent of all debt-related arrest warrants issued in Minnesota since 2005, court data show. The debt buyers also file tens of thousands of other collection actions in the state, seeking court orders to make people pay. |
Few debtors realize they can land in jail simply for ignoring debt-collection legal matters. Debtors also may not recognize the names of companies seeking to collect old debts. Some people are contacted by three or four firms as delinquent debts are bought and sold multiple times after the original creditor writes off the account. |
The Star Tribune's comparison of warrant and booking data suggests that at least 1 in 6 Minnesota debtors at risk for arrest actually lands in jail, typically for eight hours. The exact number of such arrests isn't known because the government doesn't consistently track what happens to debtor warrants. |
Hi Chrys! Well, this raises a lot of questions, how can this be
Hi Chrys! Well, this raises a lot of questions, how can this be happening?
Well, technically, once it goes to court and gets a judgment, th
Well, technically, once it goes to court and gets a judgment, the creditor *can* (in some states) attempt to enforce the judgment via a civil summons. Usually it's no problem if you don't get a warrant search (like in a traffic stop). This articles states that in some counties of Minnesota, especially, the police are well staffed and can find the time to go to your house on a civil arrest warrant. (In another section, "Top 5 Companies Using Debt Arrest Warrants", they also stated that the Star Tribune itself has had 4 people arrested due to debt to them.)
Unfortunately, at this time our country appears to be a banker's paradise, and hell for those in debt. It was almost never used because of fear of public outcry, but some collectors (apparently especially junk debt buyers, although Capital One is the 4th biggest issuer of such warrants).
It can be happening the same way millions of people are being thrown into the street because their loans are underwater and they were laid off from their job, had a medical emergency, etc. There are many things going on today that make me very angry! I wish there was a simple solution....
It's just outrageous, I am stunned that this is happening, and b
It's just outrageous, I am stunned that this is happening, and beyond angry!
No doubt. Thankfully, the numbers are yet small, but it's good t
No doubt. Thankfully, the numbers are yet small, but it's good to be aware of the possibilities. Knowledge is power.
[SIZE=3]Arrests for debt appear to be very minimal based on the
[SIZE=3]Arrests for debt appear to be very minimal based on the quotes shown. Based on one quote it seems as though arrests only happen if one does not show up to court after a judgment has already been obtained. Basically, the person is being arrested for contempt of court not for being in debt or for the debt that the judgment was issued on. Really, all the person needs to do is show up for the court date which should be done anyway to make sure you know what is going on and to protect yourself the best you can. If a debt has made it that far and it is not legitimate then the person should fight it by getting the judgment vacated otherwise it is probably a legitimate debt. [/SIZE]
