While most people only encounter debtors’ prisons in 19th century Victorian novels, the Star Tribune is running a disquieting report on people getting arrested for failing to pay court-ordered judgments that arise out of outstanding debts owed to creditors. Creditors and their collection agencies are becoming more aggressive in pursuing debtors, going so far as to seek arrest warrants for those who don’t pay court-ordered judgments. Those who are arrested usually spend less than a day in jail, but the costs of the arrest can sometimes outweigh the actual amount of the debt.
I sympathize with the notion that people should be held responsible for their debts, but it’s troubling to see law enforcement officers used this way for the benefit of private creditors. When I do occasional pro bono work for people in debt, I often get asked if they will get sent to jail if they don’t pay a certain creditor. Most of my clients are on public benefits and protected from garnishment, so that’s unlikely, but I also tell them to inform me immediately if they receive court papers. Responding directly to a court summons is always preferable to ignoring it, but most people in financial trouble don’t have an attorney to whom they can turn for advice.
It’s not “just benefitting private creditors”, it benefits us all.
It is a legitimate role of government to enforce contract law.
If government didn’t enforce contract law and people could just walk away from any debt, do you think we would see interest rates below 50% in this country?