Debtors' Prison Legal In More Than One-Third Of U.S. States

Not paying off debts can eventually land you in jail -- at least in a sizable minority of U.S. states.

Borrowers who can't or don't pay their debts can be sent to jail in more than one-third of states, the Wall Street Journal reports. Judges may issue a warrant when a borrower either misses court ordered payments or doesn't show up in court after being sued for payments on outstanding debt. Though there are no national statistics on the practice of jailing debtors, a WSJ analysis found that judges have issued more than 5,000 debt-related warrants since the beginning of 2010.

As high joblessness, slow wage growth and plummeting home values push more Americans into debt, the aftermath of the recession also makes it increasingly difficult for consumers to pay it back, and the collectors of that debt are getting more aggressive as a result.

Some states are attempting to rein in the practice of putting borrowers in jail, even as the number of borrowers threatened with arrest has surged since the financial crisis, according to a separate WSJ report. Washington state's House of Representatives voted unanamously in March to require debt collection companies to provide proof that borrowers had been notified about lawsuits before judges could issue an arrest warrant.

But, the number of complaints about debt collectors filed to the Federal Trade Commission jumped to 140,036 in 2010 from 104,766 per year in 2008. The FTC has taken 10 debt collection companies to court in the past three years, compared to six companies in the three years before that.

Even as their tactics get more aggressive, the debt collection sector is set to grow. The industry expects to increase by 26 percent over the next three years.

In some cases, the debt collection agencies have used threats and lies to get consumers to pay back their debts. A U.S. district court froze the assets of seven related debt collection companies after the FTC filed a formal complaint that the companies intimidated borrowers in order to get them to pay back their debts. In some cases, those same collectors allegedly pressured consumers who didn't owe anything at all.

And in Kansas City, one man ended up in jail after missing only a furniture payment, KCTV5 reports. James Davis purchased a mattress, bed and computer, but soon lost his job to the recession, making it difficult for him to payoff the purchases. He was repeatedly pulled into court so that collectors could find ways for him to make the payments, but after missing one hearing a warrant was issued for his arrest. Davis is suing in federal court for the way he was treated.

In June, a Colorado woman was jailed because she hadn't paid off the fines and restitution related to a car accident, The Huffington Post then reported.

Comments

[Sirbrian67]

08:09 PM on 02/28/2013

Non payment of Child Support in the State of Tennessee is an offense that carries a jail sentence! Now, Child Support is not just a debt---it is your duty as a parent to support your offspring! Now, if you go out and max out a credit card that is a different scenario---no jail time! Child Support is the only thing linking the so called---"one third of the States" to a debtors prison. Again Child support is not a debt--------IT IS AN OBLIGATION TO YOUR CHILD!
Please do not confuse the two as being the same---they are not! I can go in debt into the 100's of thousand's and file for bankruptcy and it will squash it all except any and all child support I owe! I can own tons of property and I can sell it before filing for bankruptcy and I owe nothing! But, I can owe $10.00 in back child support and go to jail for that!

That is the law in Tennessee current as of 2/28/2013!
If I go out and get in debt with a bank by purchasing a home based solely on my job and income---then the economy falls to hell and I lose my job, should I go to jail for that? NO I SHOULD NOT! I should be able to file bankruptcy and get a new start! Things happen and we have laws to protect the innocent from these types of situations.

Brian Smith

[Michael F Langdon]

12:50 PM on 02/01/2013

The reality is that if you respond to the court in a timely manner, they will not put you in jail. The problem is that the law has become a blunt force instrument of the rich and the government they control to beat down the poor and the ignorant. Slavery is alive and well by court order.

When in the course of human events...

[Michael F Langdon]

12:38 PM on 02/01/2013

Normally, bankruptcy courts would protect people, but now they only protect the rich, allowing them to steal pensions.

[Jd Logsdon]

11:32 PM on 01/31/2013

I put the blame on the banks and the credit card companies who make it easy to get credit cards. There used to be requirements about income for someone to get a credit card. Too many people do just what I saw my ex do at one time, she would take the checks that came with her monthly statement on one card to pay the minimum balance on another card...

[Dyana Gomez]

10:52 PM on 12/27/2012

@ezekielJD, why would somebody go bankrupt for a debt of $2,000? What ever you pay an attorney to file said petition, can be used to cure the debt. What you’re saying doesn't make any sense. And before any kind of action can be taken, there has to be a process that must be followed. So that would give you plenty of time to arrange your payment options with your creditors. But, if you avoid everything and don't face any of the summons, of course you're going to go to jail. It's called a “bench warrant” for failure to appear. Especially if they issue a subpoena for examination of assets. Even if you don’t have any, it’s best to notify the judge and show you’re making an effort to pay your debt. As apose to NEVER taking charge. Word of advice, don’t lose communication with your creditors, they can also break laws. They have to follow a guideline on how to collect. Look for California’s Fair Debt Collection Practices Act

[Michael F Langdon]

12:39 PM on 02/01/2013

When in the course of human events.... A new one gets closer everyday and the East India Company is alive and well.

[ezekielJD]

02:53 PM on 10/25/2012

The Constitution provided the Congress to establish a Bankruprtcy law that would incorportate all of the states... How is this possible unless a caveat was found that would enable the state ot side step the Federal. Here we have a conflict of laws.

[Lynda Elaine]

02:00 PM on 07/27/2012

You can NOT go to jail for having a debt. You CAN go to jail for violating a court order to pay the debt. A far different thing. If you have ignored the issue or not taken care of your business and allowed the court to just roll over you due to inaction, then that is your fault.

[LoveMy Ancestors]

11:06 AM on 07/28/2012

You are being abusive if you are talking to people elderly, dying in their bed.

Gawd you need help. There is something seriously wrong with you.

[BlueTexan1946]

11:14 AM on 07/28/2012

I do so agree. Lynda Elaine should not be allowed to live around other human beings.

So immature its incredible.

[BlueTexan1946]

11:18 AM on 07/28/2012

You need to just give up trying to communicating to any of us who are actually in the human race. You need help. Professional help.

[LMDAustin]

02:36 AM on 07/04/2012

I just found it after a little research (a list of the states). They are:

Indiana
Tennessee
Louisiana
Michigan
Ohio
Washington
+Minnesota
+Wisconsin
+New Jersey
+Arkansas
+Illinois
+Arizona

[njoytday]

01:42 AM on 07/31/2012

I was thinking of moving to NJ but will reconsider...

[sj-99999]

04:13 PM on 08/31/2012

THIS ISN'T A COMPLETE LIST. I've seen Alabama, Florida, Missouri and others listed as well.
This NEEDS to be fought.

[LMDAustin]

03:48 AM on 09/30/2012

Yes it does. Needs to be fought, big time.

[LMDAustin]

09:59 PM on 07/03/2012

Oh by the way, get this (true story):

I am a Senior (65+) and buried my husband 3 years ago. He died of Alzheimers and would be 84 if he was still living. I buried him in Arlington National Cemetery in Arlington, Virginia.

The V.A. took years to get his pension to me however.

I took care of him for almost a decade, but was forced to put him in a nursing home. We worked as professionals all our life, used to have a beautful home, lots of savings, plenty of money, health insurance, etc. but money all spent on his doctor bills, and later nursing home bills. Medicare has a cap after only a few months. So now I am left broke.

The nursing home sued me a couple months ago. Their lawyer sent me a letter demanding me to show up for a Deposition and questions about my "assets". I wrote him and explained that I'm elderly, diagnosed w/ Lymphoma, now on Food Stamps, and don't even have a car, no money for gas, etc. to get to his office. I explained I have no property except the clothes on my back.

So he has a fit, says I was ordered by the Court, and will be taken to jail for not showing up.

To top it off, that same nursing home is the one I think abused both of us when my husband was there.

I'm inTexas BTW if that explains anything.

Something, huh?

[LMDAustin]

10:32 AM on 07/28/2012

I"m 81 and bed ridden with Lymphoma you pathetic piece of sh*t.  Stop being abusive.

[Ro Dupree]

10:47 AM on 07/28/2012

I know LAustin and she's a retired Ph.D. You are not.
I don't know what your ignorant problem is, but you need to grow up.

You need to have respect for elderly with cancer who cannot easily leave their house.

Oh never mind you are so hopeless. You are an abuser yes.

[LMDAustin]

09:47 PM on 07/03/2012

So which states are they talking about???

If they said which states, I guess I missed it, didn't see it.

Anybody know which states exactly??

[LMDAustin]

02:36 AM on 07/04/2012

Indiana
Tennessee
Louisiana
Michigan
Ohio
Washington
+Minnesota
+Wisconsin
+New Jersey
+Arkansas
+Illinois
+Arizona

[sj-99999]

04:27 PM on 08/31/2012

Also cases in Missouri, Florida, Alabama and others.

[sherbertson]

04:53 PM on 06/04/2012

Pretty soon, the only people with jobs will be politicians, lawyers, private prison employees, and collection agencies... everyone else? In private prisons.

[njoytday]

01:44 AM on 07/31/2012

And doctors, and teh rest also in mental institutes to get free food ...

[tekjunkie2009]

09:10 PM on 05/28/2012

It is a shame that this country is ran by corporations. The corporations such as Health Insurance companies, the Banks, and the politicians. I am tired of low paying jobs in most (if not all) of the states and this recession (depression really) is getting worse. There is no sigh of relief to help those who really need it. Then you want to put people in jail (thanks to the capitalists) for no longer being able to pay back their debts. Try the family that has no income but unemployment that does not pay enough to end up with issues such as losing their home and bills had to get put on the back burner until they can find work. Take the single person who lost their job and is constantly trying to make ends meet and cannot thanks to this 'let's pretend help' that is not there at all. I was hit by some serious medical bills that put me behind along with the meager income job. I often ask myself why do I have to pay over thousands of dollars in health insurance when I have insurance? This is just plane crazy. Where is this so called help when you need it?

[sherbertson]

04:55 PM on 06/04/2012

If the GOTP keep getting their way, we won't even have the "pretend help."

[tekjunkie2009]

10:42 AM on 06/05/2012

I agree. I liked your post about the only people who will have a job will be the party of 'No' and the lawyers.

[JLTurner]

11:59 PM on 05/20/2012

For more years than I care to remember I faced going to jail for a debt. It's called child support, I had a legal bayonet in my back all the time, pay or go to jail, all the while the propaganda that dead beat parents are a type of terrorist that deserves no mercy. In Kansas the Federal government kept dangling the carrot of more money to encourage the state to turn the screws on the indentured servants paying child support. Kansas has laws against jailing debtors, but they play word games saying that it's " contempt of court " you are being jailed for even though the court order is to pay a debt. I laugh at you naive people thinking that they'll close this loophole, they can't, because if they grant certain debtors a reprieve from this and not those owing child support you'll be violating the 14Th Amendment which states that there shall be equal protection of the laws . Your best bet is quit living beyond your means, if you don't have the money you don't get it, and by me saying use cash and not credit, makes me a terrorist according to same people jailing you for a debt. To quote George Carlin " They got ya' by the bawls."

[tekjunkie2009]

09:12 PM on 05/28/2012

ummm - not everyone is living beyond their means. Child support is a different category than credit card debt, auto loans, and medical bills. Trust me, the do not have me by the balls. :)

[Eryn Morris]

04:15 PM on 07/02/2012

Child support is not just debt. Its your OBLIGATION to your child. You'd do good to remember that. Stop complaining that someone made you take care of your kids.

[njoytday]

01:47 AM on 07/31/2012

Yea if men would do so we would not need laws to enforce it.

[songchannels]

12:15 AM on 04/29/2012

In the early 1980's I was sent to jail in Los Angeles for not paying a $400 car registration ticket. They had my car towed for expired tags and I couldn't afford it at the time (it was tough back then for recent high school grads, the economy was really bad). Instead of paying the large fine I opted to spend a few days in the county jail. It wasn't a good idea and I wouldn't recommend it. This wouldn't have happened had it not been for Ronald Reagan changing the laws back then using jail to get these kind of things paid. I was in over my head back then just a little. When you're young you don't have a grasp on finances sometimes.

[lblackw105]

11:40 AM on 04/26/2012

Never mind all the chit-chat, Huffpo, NAME THE STATES ! (a list would be nice, instead of a "slide show", please).

[sherbertson]

05:00 PM on 06/04/2012

A list of the states that allow this would definitely be useful information.

[LMDAustin]

01:11 AM on 07/04/2012

oh yeah I agree!!! I looked and looked, but they didn't bother to list the so-called one third of states that do. Or the ones that don't.

Frustrating. And stupid for them not to name the states.