A debt collector can’t threaten to or have you arrested for an unpaid debt. If you’re sued and you don’t comply with a court order, though, you could be arrested.
It’s a violation of the Fair Debt Collection Practices Act (FDCPA) for a debt collector to have you arrested or claim that you’ll be arrested if you don’t pay a debt – this is harassment. However, they may file a lawsuit against you to collect the debt, and if the court orders you to appear or to provide certain information but you don’t comply, a judge may issue a warrant for your arrest.
If you don’t follow through with a court-ordered payment plan, a judge may also issue a warrant. You should never ignore a court order.
Debt is an unfortunate reality for many Americans. The average U. S. household carries $15,000 in credit card debt alone. It can feel like there’s no way out when debt gets out of hand. Debt collectors sometimes use illegal threats of debtors’ prison to get people to pay. But can debt really get you jail time? Let’s find out.
A Brief History of Debtors’ Prison
Debtors’ prisons were common in Europe until the mid-19th century. These prisons locked up people who couldn’t pay their debts. The prisons didn’t do anything to help people earn money to pay off their debts. They just piled on more fees for room and board.
Early American colonists brought debtors’ prisons with them across the Atlantic. Some Founding Fathers, including Thomas Jefferson, condemned the practice. But it persisted in the U.S. until Congress abolished debtors’ prisons in 1833.
Some groups were disproportionately targeted for debtors’ prison. For example, freed slaves often entered into unfair sharecropping contracts that kept them permanently indebted. When they couldn’t pay, they were sent to prison. Women could also be sent to debtors’ prison over unpaid dowries.
Can You Go to Jail for Debt Today?
The short answer is no. Personal debts like credit card balances, medical bills or signatures loans can’t land you behind bars today. However people are still occasionally jailed over certain kinds of debts
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Child support: When a parent fails to pay court-ordered child support, they can face jail time for contempt of court. This is incredibly rare, since it hurts the child.
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Fines: Unpaid court fines related to criminal charges can result in jail time. However, judges consider ability to pay.
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Taxes The IRS can prosecute tax evasion. You could be charged with a crime if you knowingly lie on your taxes to pay less. Honest mistakes won’t land you in jail.
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Fraud: If you obtain something of value through outright fraud, not just late payments, jail is possible depending on circumstances.
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Alimony: In some states, not paying alimony can be treated the same way as not paying child support, which can lead to contempt charges.
Do Debt Collectors Threaten Jail?
The Fair Debt Collection Practices Act (FDCPA) says that debt collectors can’t threaten to put people in jail or arrest them. However, some rogue collectors ignore the law. A collector might say:
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“We’ll have you arrested if you don’t pay.”
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“I’m calling from the county courthouse and you’ll be locked up.”
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“The sheriff is on the way to your house.”
These are all illegal scare tactics. Report such threats to the Consumer Finance Protection Bureau. Legitimate collectors are never allowed to threaten jail or pretend to be law enforcement.
Can You Be Arrested for Other Debt Issues?
While personal debts like credit cards won’t land you in jail, not properly dealing with lawsuits and court orders can. Let’s look at some examples:
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If you’re sued for a debt and don’t show up in court, the judge can issue a bench warrant for your arrest.
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Ignoring a court order to provide financial information can result in jail time.
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Dodging wage garnishment proceedings after a judgement can lead to contempt of court charges.
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Skipping debtor’s examinations where creditors investigate your finances can warrant an arrest warrant.
The takeaway is you can’t simply pretend a debt lawsuit doesn’t exist. Work in good faith with the courts. Show up when required and provide requested info. If you ultimately lose a judgement, make a realistic payment plan.
What to Do if You’re Arrested or Threatened
First, remain calm. Debtor arrests are rare and usually avoidable. Don’t panic or try to flee from an arrest warrant. That can turn a civil matter into a criminal one.
If arrested over unpaid debt, don’t discuss your case with anyone but your lawyer. Be cooperative with the court process. Most likely, a judge will release you on the condition that you follow a repayment schedule or debtor’s examination.
To avoid arrest in the first place, take debts seriously. Communicate with creditors and courts. Seek credit counseling if struggling with debt. Know your rights against harassment.
And remember unethical collectors who falsely threaten arrest are breaking the law. Report them so they face penalties. Don’t enable their abusive tactics by giving in.
Outright debtors’ prison is an outdated and illegal practice. Legitimate organizations won’t threaten arrest over unpaid bills. However, intentionally ignoring lawful court procedures can potentially land you in hot water. Manage debts properly, stand up for your rights, and keep the communication lines open. Then you need not fear any debtor’s prison nightmares becoming reality.
What protections and rights do I have in dealing with debt collectors?
You have certain rights and protections when being contacted by a debt collector. If you’re being harassed or feeling overwhelmed by their communications, you can ask a debt collector to stop contacting you.
Keep in mind, though, that there’s certain information that legitimate debt collectors are required to provide to help you verify whether the debt is yours or if it’s a scam. Stopping communications also doesn’t mean the debt goes away, and depending on the circumstances and the collector, they can find other ways to collect, including filing a lawsuit against you.
How to find a lawyer to help with a debt
A lawyer with experience in consumer law or debt collection can help you understand your state or federal rights. Also, if you’re working with an attorney, all of your communications can go through them if you let the collector know.
There are a number of ways to find a reputable lawyer in your area, including going through a local referral service or a state legal aid program if you’re unable to pay for legal support. Learn more about how to find a lawyer.
If youre having trouble with debt collection, you can submit a complaint with the CFPB.
Can Debts Lead To Jail?
FAQ
How much debt do you have to be in to go to jail?
The idea of jail time for debt stems from a historical practice known as debtors’ prisons. These institutions were abolished in the U. S. in 1833, meaning today you can’t be jailed simply for owing someone money. Unpaid consumer debts—such as credit cards, personal loans or medical bills—won’t land you behind bars.
Can you be criminally charged for debt?
Key takeaways. Creditors cannot have you arrested for credit card debt, but they can sue you for payment. If you are sued and don’t answer, a default judgment could give creditors everything they want and lead to wage garnishment or other actions to get their money back.
Can I go to jail for not paying my bills?
If you don’t pay your credit cards, medical bills, or utility bills, you can’t be arrested or go to jail. However, in some cases, unpaid debt can lead to arrest, especially if it involves: Child support. Tax-related offenses, like tax fraud or evasion.
What is the punishment for not paying debt?
While you won’t be thrown in jail for failing to pay your credit card debt, the consequences can still be serious. Lawsuits, wage garnishment, relentless collection efforts and long-term damage to your credit score can make life much harder.