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Subject:
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Debtors' Prison Is Back -- and Just as Cruel as Ever -
DailyFinance
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Fri, 31 Aug 2012 11:11:58 -0600
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Debtors' Prison Is Back -- and Just as Cruel as Ever
Posted 12:25PM 08/30/12 Posted under: Credit,
Personal
Finance, Debt
To most of us, "debtors' prison" sounds like an archaic institution, something straight out of a Dickens novel. But the idea of jailing people who can't pay what they owe is alive and well in 21st-century America.
According to a report in The Wall Street Journal, debt collectors in Missouri, Illinois, Alabama and other states are using a legal loophole to justify jailing poor citizens who legitimately cannot pay their debts.
Here's how clever payday lenders work the system in Missouri -- where, it should be noted, jailing someone for unpaid debts is illegal under the state constitution.
First, explains St. Louis Post-Dispatch, the creditor gets a judgment in civil court that a debtor hasn't paid a sum that he owes. Then, the debtor is summoned to court for an "examination": a review of their financial assets.
If the debtor fails to show up for the examination -- as often happens in such cases -- the creditor can ask for a "body attachment" -- essentially, a warrant for the debtor's arrest. At that point, the police can haul the debtor in and jail them until there's a court hearing, or until they pay the bond. No coincidence, the bond is usually set at the amount of the original debt. As the Dispatch notes:
"Debtors are sometimes summoned to
court repeatedly, increasing chances that they'll miss a date and be arrested.
Critics note that judges often set the debtor's release bond at the amount of
the debt and turn the bond money over to the creditor -- essentially turning
publicly financed police and court employees into private debt collectors for
predatory lenders."To most of us, "debtors' prison" sounds like an archaic institution, something straight out of a Dickens novel. But the idea of jailing people who can't pay what they owe is alive and well in 21st-century America.
According to a report in The Wall Street Journal, debt collectors in Missouri, Illinois, Alabama and other states are using a legal loophole to justify jailing poor citizens who legitimately cannot pay their debts.
Here's how clever payday lenders work the system in Missouri -- where, it should be noted, jailing someone for unpaid debts is illegal under the state constitution.
First, explains St. Louis Post-Dispatch, the creditor gets a judgment in civil court that a debtor hasn't paid a sum that he owes. Then, the debtor is summoned to court for an "examination": a review of their financial assets.
If the debtor fails to show up for the examination -- as often happens in such cases -- the creditor can ask for a "body attachment" -- essentially, a warrant for the debtor's arrest. At that point, the police can haul the debtor in and jail them until there's a court hearing, or until they pay the bond. No coincidence, the bond is usually set at the amount of the original debt. As the Dispatch notes:
Standing Up for Those Who
Can't Pay
The practice -- in addition to putting an additional squeeze on poor people -- turns courts and police into enforcers for private creditors, from payday lenders to health care providers. The situation prompted Illinois legislators in July to pass a bill "to protect vulnerable consumers from being hauled to jail over unpaid debts," in the words of state Attorney General Lisa Madigan. The Debtors' Rights Act of 2012 requires two "pay or appear" court notices to be sent to debtors before an arrest can be made, and also prevents creditors from calling for multiple examinations unless the debtor's financial state has significantly changed.
The practice -- in addition to putting an additional squeeze on poor people -- turns courts and police into enforcers for private creditors, from payday lenders to health care providers. The situation prompted Illinois legislators in July to pass a bill "to protect vulnerable consumers from being hauled to jail over unpaid debts," in the words of state Attorney General Lisa Madigan. The Debtors' Rights Act of 2012 requires two "pay or appear" court notices to be sent to debtors before an arrest can be made, and also prevents creditors from calling for multiple examinations unless the debtor's financial state has significantly changed.
Many of the victims, Madigan
noted at the time, were living on funds that are legally protected from being
used for outstanding debt judgments, such as Social Security, unemployment
insurance or veterans' benefits. In one case she cited, an Illinois court
brought a "pay or appear" order against a mentally disabled man
living on legally protected disability benefits of $690 a month. The man told
the court of his circumstances but was still ordered to pay $100 a month or
appear in court once a month for a three-year period.
"It is outrageous to think in this day and age that creditors are manipulating the courts, even threatening jail time, to extract whatever they could from people who could least afford to pay," Madigan said. "This law corrects that gross oversight and puts a stop to throwing people in jail for being poor while still allowing fair debt collection when people have the means to pay their debts."
Illinois notwithstanding, the modern-day debtors' prison probably isn't going away anytime soon given the current economic climate: More than a third of U.S. states allow borrowers who can't or won't pay their debts to be jailed.
"It is outrageous to think in this day and age that creditors are manipulating the courts, even threatening jail time, to extract whatever they could from people who could least afford to pay," Madigan said. "This law corrects that gross oversight and puts a stop to throwing people in jail for being poor while still allowing fair debt collection when people have the means to pay their debts."
Illinois notwithstanding, the modern-day debtors' prison probably isn't going away anytime soon given the current economic climate: More than a third of U.S. states allow borrowers who can't or won't pay their debts to be jailed.
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1 comment:
The way I see it, going to court creates a 'performance contract'.
Anyone knowing 'redemption' would know they want a corporation or it's representative in court.
it's not common law so they aren't looking for a living male or female.
my opinion, my opinion, my opinion
The name they call is for the corporation, and when you answer to it, you have agreed to represent it and the charges against it.
Yes, they get you to sign documents that begin the obligation to appear and appear and appear and 'no law impairing the obligation of contracts shall be made', so now YOU have to abide by the terms or suffer the consequences for your action.
You won't learn it on t.v. and it's no one's job to taach you how to be free.
As long as you are a registered participant, you are agreeing to represent the corporation and play the game.
Allowing illegals amnesty is just creating more corporate obligations for the control mechanism of the corporate government.
They are freer while they are illegal.
Once they register they are just like you.
But slaves don't want more slaves.
Go ahead, something good is on t.v.
Enjoy yourself.
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