The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
  • Books
  • Categories
  • Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
No Result
View All Result
The Money Coach
No Result
View All Result

Deep in Debt? You Could Get Locked Up!

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Debt
Reading Time: 3 mins read
Debt and Jail
7
SHARES
123
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

If you had asked me before today if you could get get locked up for having outstanding credit card bills, I would have said: Absolutely not. After all, debtors’ prisons in the United States were abolished in the middle of the19th century. Unfortunately, however, a frightening and little-known occurrence is taking place in cities all across America: People are, in fact, being put in jail simply because they can’t afford to pay their creditors.

This chilling article in the Minneapolis Star Tribune details how common the practice is in various parts of Minnesota, and how it’s also taking place throughout the rest of the country, too. For the most part, those getting thrown in jail for being in debt have two things in common: First, they obviously didn’t pay their creditors as agreed. Equally important, though, they failed to show up at court hearings about their debts, which resulted in debtor warrants being issued for their arrest.

If you’re being hounded by debt collectors, read my article ‘5 Tips if You’re Facing Court Action from a Debt Collector,’ as well as another piece I wrote called ‘Why You Should Answer a Summons on Debt Collection.’

As I read the Star Tribune article, ‘In Jail for Being in Debt,’ my jaw literally dropped. The article profiled multiple individuals who’ve been arrested for unpaid debts, including three women: a 57-year-old patient care advocate who defaulted on a $6,200 credit card bill after a costly divorce, a 38-year-old restaurant cook who didn’t pay a $250 credit card bill, and a 27-year-old new mom who had police show up on her doorstep when she was recovering from giving birth by cesarean section.

These women were and are not criminals. They simply could not afford to pay their bills — like tens of millions of other Americans. It is absolutely outrageous that the legal system has now become an instrument of the overly aggressive debt-collection industry. It’s bad enough that people who are truly unable to pay off old obligations get harassed by debt collectors, called at all hours of the day and night, and threatened with wage garnishments or seizure of their bank accounts. Now they have to worry about being incarcerated, too?

What about the 15 million Americans who are unemployed or the 40 million Americans who are now on public assistance? I guess they risk getting locked up as well just because they’re broke?

A Call to Action

Concerned citizens everywhere should spring into action over this gross injustice. Here’s what can be done:

– Call or write your senator or congressman and voice your displeasure.

– Check out the laws in your own state and inquire about whether “debtor warrants” can be issued where you live.

– Ask your local representatives to enact or change relevant laws concerning this area.

– Spread the word to those you know who might be impacted by this unfair phenomenon.

Unfortunately, in many cases, this new era of debtors’ prisons is disproportionately affecting minorities and the poor. In fact, the New York Times last year ran an op-ed piece noting that, in Gulfport, Miss., judges would routinely throw debtors — most of whom were African Americans — in jail when they couldn’t pay their debts. That treacherous tactic allowed broke debtors to “sit off” their debts. In other words, those people had to do time as a way “pay” their debts. This onerous practice didn’t stop until a lawsuit was brought against the city.

The Times called imprisoning those who can’t afford to pay court-ordered judgments “barbaric and unconstitutional.” I couldn’t agree more, particularly since so many individuals and families are currently facing tough economic times.

Throwing Debtors in Jail Affects Us All

There are some instances in which people flout the law and intentionally don’t pay certain legally required responsibilities — such as child support or taxes — even when they can afford to do so. In extreme cases, these people can wind up getting imprisoned. But that’s not what we’re talking about. The cases highlighted by the Star Tribune involve people who owe banks, credit card companies and other creditors such as collection agencies. Locking up individuals who are deep in debt simply because they are poor is cruel and unjust.

By the way, in case you’re thinking: “Why should I care? I don’t owe any money” or “Good, let them go to jail,” you should be aware that this issue affects everyone, including you: As it turns out, taxpayers pay the cost for arresting and jailing debtors.

What do you think about this trend? Should local, state or federal law allow people to get put in jail for failing to pay creditors? And has this ever happened to you or anyone you know?

Tags: collection agencyCreditordebtor's prisonPrison
Previous Post

How to handle harassment by a collection agency

Next Post

Do You Have A Split Personality When it Comes to Money?

Related Posts

household debt

Household Debt Reaches $16.51 trillion in Q3 2022

by Lynnette Khalfani-Cox, The Money Coach

The Federal Reserve Bank of New York's Center for Microeconomic Data today (November 15, 2022) issued its Quarterly Report on Household Debt and Credit . The Report shows an increase in total household debt in the third quarter of 2022, increasing by $351 billion (2.2%) to $16.51 trillion. Balances now stand $2.36 trillion higher...

Debt Snowball Vs. Debt Avalanche: Which is the Best Approach to Pay off Debt?

by Guest Blogger

Anyone who’s ever been in debt knows one thing: it doesn’t make life easy. In fact, debt can have many negative effects on one’s livelihood. For example, having large amounts of outstanding debt can negatively affect your ability to obtain any type of credit, such as a credit card or...

FDCPA

How To Deal With Out of State Debt Collectors

by Lynnette Khalfani-Cox, The Money Coach

Q: Hi, Can a debt collector that is based in and licensed in the state of Delaware, collect a debt from me in California? Also, I know California no longer requires California agencies to be licensed, however they have broken 3 possibly four of the FDCPA rules  and I would like to report them,...

debt collectors

5 Tips to Protect Your Paycheck from Wage Garnishment

by Lynnette Khalfani-Cox, The Money Coach

Do you have a lot of unpaid debts? If so, your creditors may threaten your paycheck with wage garnishment. Wage garnishment occurs when a court issues an order to withhold a percentage of your paycheck until your debts are paid off. For large debts, this can be financially devastating. Is...

get out of debt

The Pros and Cons of Paying Off Someone Else’s Debt

by Lynnette Khalfani-Cox, The Money Coach

Managing your personal finances wisely is one of the hallmarks of a responsible and mature person. Unfortunately, not everyone is able to or willing to handle their own financial affairs. Sometimes money problems occur as a result of circumstances; other times poor decisions play a role. Either way, it can be...

jail debtors prison

4 Crazy Times People Got Thrown In Jail Because of Their Debts

by Lynnette Khalfani-Cox, The Money Coach

Debtors prison was abolished in America well over a century ago. But that doesn’t mean you can’t get arrested or locked up for past-due debts. Here are four crazy instances in which authorities have hauled people off in handcuffs and taken them to jail in connection with having overdue bills....

debt detox

The 5-Step Debt Detox That Improves Your Finances and Health

by Lynnette Khalfani-Cox, The Money Coach

If you’ve resolved to improve your finances in 2016, now is a great time to do a debt detox. Many people are still in their holiday debt hangover, so the beginning of the year gives you a good opportunity, and a good reason, to get back on track financially. If...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1370 shares
    Share 548 Tweet 343
  • What to Do if Your Spouse Stole Money From You

    1159 shares
    Share 464 Tweet 290
  • What to Do If You Can’t Afford to Leave Your Spouse

    1097 shares
    Share 439 Tweet 274
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    999 shares
    Share 399 Tweet 250
  • What Do All Those Strange Codes In My Credit Report Mean?

    809 shares
    Share 324 Tweet 202
  • Do This Now If Your Wages Were Not Reported

    736 shares
    Share 294 Tweet 184
  • How to Find Out if a Debt Collector is Licensed to Collect Your Debt

    713 shares
    Share 285 Tweet 178

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
  • Home
  • Subscribe to Newsletter
  • QR Code

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist