If debt was a disease, it would be an epidemic in the United States in epic level proportions. According to a study by the Urban Institute, one in three adults in the US has a debt that has been turned over to collectors. Consumer debt, or personal debt, is now greater than it was during the 2008 recession for a total of $14 million. These figures make it likely that you are someone who has personal debt and you may be worried about the consequences.
Do Debtor’s Prisons Still Exist?
Debtor’s prisons were an archaic fear tactic to lock up people who could not pay back their debts. These were common until the mid-1800s but were abolished in 1833 by the US Congress. After that point, a person could no longer be arrested or jailed for any civil debt. Civil debt consists of credit cards, payday loans, student loans, utility bills or medical bills.
Can They Force Me To Give Money Back?
If your debt collection agency must choose to sue you in a civil court. If the judge rules in their favor to prove you legitimately owe the debt for the amount stated then a plan for reparations will be prepared. This could include wage garnishment or tax refund interception. A judge cannot order jail time or probation for civil debt even if a reparations plan is mandated. However, if you fail to comply with post-judgment orders to reappear in court or follow court-ordered payment plans then you may be held in contempt of the court. These are all legal gray areas that may be exploited by disreputable collections agencies. However, it is prohibited for a debt collector to threaten arrest, warrants or jail time for not paying back a civil debt.
What Kind of Debt Can I Be Jailed For?
There are only two kinds of debt that you can face jail time over. Those are taxes and child support. Tax evasion is a very serious federal crime because it is the civic duty of all citizens of the US to pay federal taxes. Child support is a court-mandated monthly payment to support children who are out of your care. You must make reasonable efforts to meet your child support payments or you can face jail time.
How Do I Protect Myself?
If your debt collection agency files a lawsuit, hire an attorney to represent you. Fewer than 10% of defendants in debt collection suits are represented. This can cause a disproportionate ruling of wins in favor of debt collection agencies. You can consult with your state Attorney General’s consumer division.
Take any court appearance notices seriously. If you are required to be in court, you must be present or you can be held in contempt and convicted guilty in your absence. Appearing at all examinations and appearances will help your case.
If you feel that you cannot pay your bills, consider if you are eligible to file for bankruptcy to stop the cycle and get in control of debt.
Pacific Collection Group is a debt collection agency in California. Do not hesitate to reach out to us and discuss your debt and repayment options. We want you to know that we are open and available to have a discussion about your debt and needs. You can also visit the Pacific Collection Group at our local office in person