Debtors prison returns!

Discussion in 'Economics' started by peilthetraveler, Jan 2, 2012.


    As if life wasn't already tense enough for Americans who can't pay their debts, collection agencies are now taking advantage of archaic state laws to have some debtors arrested and sent to jail.

    More than one-third of US states allow debtors to be arrested and jailed, says Jessica Silver-Greenberg in the Wall Street Journal.

    Judges typically grant arrest warrants when the debtors have failed to show up for court dates or failed to make court-ordered payments.

    Of course, the reason debtors have failed to make court-ordered payments is often the same reason they didn't pay their debts in the first place: They don't have any money.

    In September, a 53 year-old woman named Vivian Joy was stopped for a broken tail-light in Champaign, Illinois. And then, because the cops discovered that she still hadn't paid $2,200 to a collection agency, she was cuffed and carted off to jail.

    Joy's excuse?

    She doesn't have any money.

    Jailing debtors for not paying their debts is apparently especially popular in Illinois.

    Such a lousy excuse that she doesnt have money. She obvious had money to have a car. She had money to fill up the gas tank. She had money to pay car insurance.

    Maybe she should finish that sentence and she should say that she doesnt have any money because she doesnt want to downgrade her lifestyle. Sell the car and she no longer has to pay for gas, insurance, car payments and she could pay her debt in a few months, but she didn't want to do that.

    Now if somebody REALLY doesnt have any money as in they cant even afford electricity in their home, gas, no car, no cable TV, no internet, then yeah, those people shouldnt have to go to jail. But if you have any "luxuries" then send them to jail if they dont pay because they are spending YOUR money on themselves!
  2. don't pay your $2,000 credit card debt - go to jail.

    steal 1 billion directly from MF Global clients - say you're "really sorry" at a Congressional hearing.

    don't pay your 1 trillion debt to bank depositors - call up your buddies in Congress and the Fed and get bailouts and 0% loans in perpetuity - then congratulate yourself on "saving the economy" and give yourself a big yearly bonus.

    wake up and smell the neo-feudalism, America.
  3. This story appears to be sensationalized now in the media.

    There are only 6 states online that have been listed as states that allow the issuance of bench warrants, not for unpaid debts, but failure to appear to make court appearances, and the article says that there are more than a third of states that allow this but there is no list, so this appears to have first been written by the Wall Street Journal with no list of states that do this.

    WSJ was very incomplete in their research on this, and the article cited in the Yahoo! AP cites them as their source and does not have links with a list with greater than 6 states on it.
  4. "Judges typically grant arrest warrants when the debtors have failed to show up for court dates or failed to make court-ordered payments."

    They might go to jail for not obeying a court order and that would be contempt of court. It's not the same as debtor prison. Arbitration will stop them in their tracks.
  5. Seems it would be better for everyone in the US to personally incorporate. Then you can stiff anyone and do a BK, reincorporate, rinse and repeat.

    After all the true purpose of using fictitious entities is to shield personal liability.
  6. Good idea except for the fact no bank will give you a loan defeating the purpose of incorporating.
  7. Yes, this is more accurate. Peil is a complete dipshit.

    I've seen so many of these idiotic posts from him in the past year or so that I figure the guy lost his mind awhile ago.
  8. Put me on ignore if you dont like my posts then you freaking moron. Stop whining like a little girl. Sheesh, it a wonder you ever learned to use a computer.
  9. Pocketchange is right. If you incorporate you can take all the money you earn and then deduct all the money you spend and get taxed on only what is left over, sweeeeet deal. :D
  10. high99


    Failing to pay a debt is a civil matter. Not a crime. The loan was made willingly by both parties. If it is not repaid per the terms, then the lender can obtain relief via the terms spelled out for a default. So cut the crap scare tactics. As stated before they are talking about contempt of court for failing to appear. Nobody will spend hard time incarcerated for contempt. Regarding selling your car, TV, or family dog to pay back a couple of grand, it won't work. These basic types of assets are exempt and cannot be forced to liquidate. This sensationalist "news" came out last year and promptly died. This post is a waste of time and nothing more than recycled Bull Shit.
    #10     Jan 2, 2012