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Can You Be Arrested For Debt?
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Are you able to be arrested for Debt?
You aren't typically arrested for debts, only sued, but in some states, you may be charged for not observing a court-ordered judgment.
Written by Sean Pyles Senior Writer | Personal finances debt Sean Pyles leads podcasting at NerdWallet as the producer and host of NerdWallet's "Smart Money" podcast. In "Smart Money" Sean talks with Nerds from NerdWallet's NerdWallet Content team to answer listeners' personal finance questions. With a focus on thoughtful and practical advice on money, Sean provides real-world guidance to help people improve in their finances. Beyond answering listeners' money questions on "Smart Money," Sean also interviews guests who are not part of NerdWallet and produces special segments that explore subjects such as the racial wealth gap, how to start investing and the background of student loans.
Before Sean took over podcasting for NerdWallet He also covered issues concerning consumer debt. His work has appeared throughout the media including USA Today, The New York Times and other publications. When Sean isn't writing about personal finance, Sean can be found working in the garden, taking walks, or taking his dog on long walks. He is based at Ocean Shores, Washington.
Last updated Aug 5, 2021 at 2:46 PM PDT.
Edited by Kathy Hinson Lead Assigning Editor Personal finance, credit scoring, debt and money management Kathy Hinson leads the Core Personal Finance team at NerdWallet. Prior to joining NerdWallet, she worked for 18 years working at The Oregonian in Portland in positions such as copy desk chief and team director of design and editing. Her previous experience included editing copy and news for various Southern California newspapers, including the Los Angeles Times. She graduated with a bachelor's in mass communication and journalism from The University of Iowa.
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You aren't liable to arrest just because you owe money on what you might consider to be consumer debt, such as a debt on your credit card or loan or medical bill. Legally, can't even threaten the person with arrest. But they do have other legal recourse for you, like suing to collect a payment.
In some rare cases, this kind of debt may result in arrest for other charges, like fraud, theft or ignoring a court order.
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Affidavits of arrest from collectors are illegal
At one time, people were able to be imprisoned due to owing money, however debtors' prisons have been banned throughout the United States since the mid-1800s.
In addition, the legislation of 1977 bans debt collectors from intimidating or deceiving consumers, and that includes threats of arrest. In addition to the regulations on what collectors can say they can say, the law restricts how and when they can contact you.
However, debt collectors may make use of the legal system.
Debt collectors cannot be arrested, but they can demand payment from you which is often their most efficient legal recourse. Hundreds of thousands of civil suits over debt are filed annually even with no evidence to verify how much is due and who is liable.
Less than 10% of the debtors have an attorney represented when sued for a debt. A lot of people don't respond to lawsuits in any way and, in the end, they'll get the default judgment, which can lead to , an levy on the bank or both.
If you're sued, by default.
If you receive a court summons, don't ignore it. Sometimes, just going to an attorney and asking for the collection agency to prove that they have sued the correct person in the proper amount will end the case, or to get it resolved for less.
Legal loopholes can lead an arrest
There are a couple of instances in which aggressive creditors could use legal loopholes to obtain or threaten to arrest for related debts:
In about one third of the states that debtors may be detained in the event of their failure to follow a court ruling that was a result of the filing of a lawsuit. In other words that a debtor was dismissed from the case in court or failed to make an appearance, or was told to pay, but failed to. The arrest is for defying the court, not for owing the money.
Certain payday lenders pursue or threaten to arrest if a consumer's payment check fails to clear, often claiming it was deliberate fraud.
Rent-to-own furniture companies sometimes pursue arrest for consumers who fail to pay but refuse to be able to return furniture.
What can you do
If you're being harassed by an aggressive debt collector:
Be cautious: Get the facts straight, including whether the debt is yours and the correct amount by .
Be firm Beware of being pushed into a hasty decision. Spend time figuring out the most effective way to proceed .
Make sure you are protected: Contact debt collectors who are harassing you to the .
>> MORE:
The author's bio: Sean Pyles is the host and executive producer of the NerdWallet's Smart Money podcast. His writing has been featured in The New York Times, USA Today and elsewhere.
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