I can’t tell you how many times I’ve said or written that you can’t go to jail over a debt. In general, no, there are no debtor’s prisons in the U.S. But a little article on debtor abuse in the Boston Globe (please stay alive, OK?) made me sit up and take notice. Apparently, there is a little loophole (at least in Massachusetts) that may prove me wrong about never going to jail over a debt.
In Massachusetts, under the law, not paying a judgment can be considered contempt. A judge can fine a debtor $200 for contempt or put him in jail for up to 30 days. The Boston Globe article described how Marc Marcelin, a 53-year-old Haitian immigrant, was brought to court in handcuffs over a $2000 debt and had a judgment granted against him that very day. When he asked if he could pay the debt, he couldn’t and spent 28 days in jail. Wow. Is this even legal? Mr. Marcelin apparently couldn’t find out as he could not afford an attorney – and in civil cases, you do not have a right to free court-appointed attorney.
On the face of it, debtor’s prisons don’t seem to make sense, as how many people in jail can earn enough money to repay their debts? Would fear of jail make people pay up faster? I’m no criminologist, but I think that people fall prey to human folly like overspending more often than not, even if it has gotten them into trouble before. Some people never learn.
My former stance that you can’t go to jail for not paying your debts was based on the following facts:
- Under the Fair Debt Collection Practices Act, consumers are protected from debt collectors who use threats of jail to blackmail debtors into paying their debts. As a matter of fact, one collection firm was just shut down for such fraudulent practices.
- Collectors can absolutely not send around the sheriff to take you to jail if you don’t pay your debts to them, or at least the debts they say you owe. Collectors also cannot threaten to sue you if they have no intention to do so (although this is tough to prove in court). Here are more of your rights when dealing with collection agencies.
- Until now, I had not heard of any instance where some one lost in court over a debt and went to jail. Sure, you can get a lien placed on your house, you can have your wages garnished and even bank assets frozen, but at least you’re not spending time in the slammer.
Until now, I thought that even if you were sued in court for a debt and you lost, you could still not go to jail. Sure, you can get a lien placed on your house, you can have your wages garnished and even bank assets frozen, but at least you’re not spending time in the slammer. This Boston Globe article has me shaken a little.
Has anyone else been subject to this kind of abuse? Please leave a comment and tell us.