Debt=Jail Time? Debtors Jailed for Missed Court Appearances

Let’s say you owe a creditor money. What are the chances that missing a court date for an unpaid debt you could get thrown in jail? It could depend, in part, on the state in which you live, says the
(Minneapolis) Star Tribune.

According to reporters Chris Serres and Glenn Howatt, debt-related arrest warrants are on the rise in Minnesota, and arrests are increasing in states including Arkansas, Arizona and Washington. “In extreme cases, people stay in jail until they raise a minimum payment,” the reporters observe, noting the fate of an Illinois man who faced “indefinite incarceration” until he came up with $300 he owed a lumber yard. (In Minnesota, many debtors spend up to two days locked away).

While enforcement of laws regarding debtors who miss court hearings are “inconsistent from state to state, and even county to county,” according to the paper, it’s tough to assess the scope of the trend nationally, since nobody’s keeping such a tally. The laws permitting the arrest of a debtor aren’t new. But the situations are exacerbated by “the rise of well-funded, aggressive and centralized collection firms, in many cases run by attorneys, that buy up unpaid debt and use the courts to collect.”
The story is comprehensive and well worth a read, as is a companion piece: “What to know: Avoiding warrants.”

Tagged as: collection, debt, debtors' prison, minimum payment, unpaid debt, warrants

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