Arguments Against Debtor Prisons

Debtor prisons are a thing of the past. Usually, you cannot go to jail because you don’t pay your debts or bills. However, there are a few situations when you might face jail time.

Violating a court order

A court can order you to serve some jail time if you willfully violate a court order. In the debt context this most frequently comes into play with court-ordered child support payments. If the person reviewing the child support requests a court hearing because of your nonpayment and the judge finds that you could have paid child support, but didn’t the court could order jail time. In certain states a court can order you to make periodic payments on a debt.

Refusing to pay income tax

Refusing to pay income taxes is a crime. If you are prosecuted and convicted, you could go to jail.

The creditor orders you to come to court and answer questions about your property and finances. Not showing up as told to do so, you could possibly face jail time.

Debtor’s prisons being outlawed

Debtor’s prisons continued to be used in the U.S and the U.K into the 1800’s at which both countries outlawed the practice of putting people in jail for their debts. It was outlawed in the U.S in 1833 and abolished in the U.K in 1869. Some countries such as United Arab Emirates, including Dubai can be imprisoned for failing to pay their debts.

In Minnesota which has some of the most creditor friendly laws in the country. The use of warrants against debtors has jumped 60 percent over the past four years with 895 cases in 2009.

Bail is often the same amount as the debt One thing people are finding they’ve been put in jail and that their bail payment is set of the exact same amount of their debt owed. When they post bail, their money goes directly to the debt