This is one of the more common questions that debtors have because it’s a threat that creditors are willing to throw out there. The truth is that it’s illegal for a debt collector to tell you that you’ll be arrested if you don’t pay your debt. However that doesn’t mean that you can’t end up in jail because of an outstanding debt.
The Answer Unfortunately is Yes and No
You can’t be arrested just for having outstanding credit card debt. Owing money to a creditor or debt collector is a civil matter not a criminal one. As a result those creditors can sue you. Usually this just means that the judge will grant the creditor a default judgment and the creditors will continue to come after that money.
A judgment will stay on your credit reports for up to ten years. And the debt collectors can garnish your wages at once they have a judgment in their favor. This is normally the route that collectors take.
However if you’re served with a subpoena and you fail to appear in court, well then you might just get a knock on the door from the local sheriff’s department. You COULD be arrested for failure to appear in court, not credit card debt.
Debt Related Arrests Are a Recent Trend
Actually being arrested for failure to appear in court for outstanding debts is a problem that’s currently on the rise. Debtors’ prisons were closed down in the United States in 1833. But according to a June 9th article in the Minnesota Star Tribune:
The use of arrest warrants against debtors has jumped 60 percent over the past four years.
And Minnesota isn’t the only state seeing this happen. According to consumer attorney’s, similar arrests are increasing in Arkansas, Arizona and Washington. The problem is that laws are different from state to state, and even county to county. Law enforcement is becoming just another tool that debt collectors are trying to manipulate.
Don’t Miss a Court Date
This obviously can’t be stressed enough. I understand that you may just want to bury your head in the sand and hope that the problem disappears. Even if you’re involved in debt relief or you’re filing for bankruptcy, if you get a subpoena, show up in court to explain your situation.
Even judges are willing to admit that unfortunately when the debtor doesn’t show, they’re forced to render a default judgment to the debt collector. Had the consumer just appeared in court, the outcome would’ve probably been more in their favor.
The bottom line is that you need to work with your creditors to avoid it getting to this point. Trying to hide isn’t going to solve your financial problems, and if anything it’s just going to make them worse.
If you feel overwhelmed, go find someone that’s knows how to handle these types of situations. Ethical credit repair and debt relief companies should be able to explain the best course of action to both pay off your debts and stay of legal trouble. But do not, DO NOT, think that ignoring the problem will make it go away.
