Until the mid-19th century, many people were imprisoned
for delinquent debts. Similar to today's
workhouses, you could lose your freedom until the debt was paid off. Debtors prisons were abolished long ago, but
there are still are ways that you can go to jail for unpaid debt.
If you are held in contempt of court, you can go to
jail. It’s not as hard for this to
happen as you might think. If a creditor
sues you and obtains a court determination that you owe money (called a "judgment""),
and you can't or won't pay, then the creditor may send you a demand for
disclosure of your income, your bank accounts, and property. Or the creditor may subpoena you for a
deposition to give sworn testimony regarding these matters. The creditor wants this information so that
it knows how to garnish your wages, levy your bank accounts, and seize your
property. If you don't respond with the
information, then you may receive an "order to show cause" at a court
hearing as to why you should not be held in contempt of court for failing to
cooperate. If you don't then show up at
the hearing with the information, the judge may enter a bench warrant for your
arrest. The purpose of the arrest
warrant is not to punish you, it is to force you to give the creditor and the
court the information regarding your income and assets. It wouldn't be uncommon to be arrested on a
Friday and spend the weekend in jail until you are brought before a judge on
Monday to testify as to your income and property.
If you need to file bankruptcy, save yourself a lot of
misery and do it before matters reach this point. When you file a bankruptcy
petition, you are protected by the automatic bankruptcy stay against collection
efforts and you don't need to worry about being held in contempt of court.
For more information regarding your specific situation,
contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 or at www.BankruptcyMinn.com
for a consultation.
