Why You Should Beware of Debtors' Prison by Mary Hunt on Creators.com

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Why You Should Beware of Debtors' Prison

Debtors' prisons were abolished in the United States in the 19th century. I surprised myself when I remembered that fact as I read a recent headline from the Star Tribune of Minneapolis-St. Paul, "In jail for being in debt." Immediately, I conjured an image of a shivering woman crouched in the corner of a jail cell, sharing a meal of gruel with rats. Suddenly, $39 late fees and annoying calls at dinner didn't seem all that bad.

Only days later, CBS MoneyWatch.com consumer reporter Marlys Harris related the story of Mr. Button in southern Indiana. Seems that one Herman Button owes $1,800 to a former landlord and has no means to pay up. The judge threatened jail time for Button if he did not come up with $25 each month to pay down the debt. In that case, the Indiana Court of Appeals reversed the order on the grounds that it violated the state constitution. Even so, in that state, a creditor can petition a court to issue a summons for nonpayment of a bill. If the debtor fails to appear, then she's in contempt of court and all bets are off. Jail time becomes a definite possibility.

Should you be worried about getting hauled off to the pokey because you're behind on payments or you've defaulted on a credit card balance? Apparently, you should. Any creditor can file a lawsuit for nonpayment. If you do not respond and show up to defend yourself, you could lose by default. If the court is in a particularly nasty mood that day, it could issue an order for your arrest plus a legal judgment against you.

Even if you simply are issued a judgment, you still have cause for concern.

The plaintiff can use any legal means available to collect that judgment, including garnisheeing your wages, filing a lien against your property, tapping your bank account and so on. Laws vary by state, but none of the potential consequences is pleasant.

Though the odds of your going to jail for nonpayment of your debts are probably slim, it does occur to me that any time we carry debt, we have created our own kind of debtors' prison. Whenever there is a debt incurred, the borrower becomes a slave to the lender. Sounds like prison to me. Thank goodness there's a way out. It's called repaying the debt as quickly as possible. If that means selling assets or taking on a second or third minimum-wage job nights and weekends, it would be worth it to break those chains of bondage.

Should you ever find yourself in jail for being in contempt of court, get ready to run up even more debt. Harris reports that an increasing number of prison systems are charging inmates for their keep. It's as high as $60 a day in Springfield, Ore. If you can't pay? Harris is guessing they'll just issue a warrant for your arrest and put you back in jail.

Mary Hunt is the founder of www.DebtProofLiving.com and author of 18 books, including her best-selling classic "Debt-Proof Living." You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.

Comments

1 Comments | Post Comment

There is an alternative for people who are deeply in debt and can't find their way out: bankruptcy. It should always be done with the help of a competent attorney. The more people are attacked and threatened for not being able to pay their debts, the more they'll be driven toward that option. You'd think creditors would realize that, but along with a lack of compassion, many seem to have a lack of common sense.

Comment: #1
Posted by: sarah morrow
Sun Sep 5, 2010 11:21 PM

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