Can I Be Imprisoned for Debt?

The number of arrests in the United States associated with attempts to collect debts are difficult to pinpoint because states don't follow the same procedures for such actions. Still, news reports have documented the arrest of people who have fallen behind on paying creditors and court fines. Such stringent debt-collection actions may be linked to economic conditions.

Arrested Debtors

Debtors' prisons were outlawed in the United States in the 1830s, but a 2010 Minneapolis-St. Paul "Star Tribune" article, In Jail for Being in Debt, says people are still being arrested for not paying debts. According to the "Star Tribune," Minnesota's use of arrest warrants against debtors increased 60 percent over four years, with 845 such warrants in 2009. However, the article notes that every warrant didn't lead to an arrest. More companies are buying delinquent consumer debts to profit from collecting on them, which may be driving the forceful tactics to recoup payments. The "Star Tribune" says whether people are prosecuted for unpaid debts varies from state to state.

Court Judgments

A 2010 "Reason" magazine article, The Return of Debtor's Prison, notes that debtors are supposed to disclose their financial situation to a collector if a court judgment is issued against them. The collector can get an order to require debtors to make a court appearance if they don't disclose their finances. A judge can then issue an arrest warrant for debtors who don't appear in court. According to "Reason" magazine, the court process is the same one used to arrest parents who fall behind on child-support payments.

State Budget Shortfalls

Tougher debt-collection practices also may be linked to budget shortfalls throughout the nation. A 2010 "Newsweek" magazine article says state funding for courts has dropped around the country. Therefore, collecting court fines has become an essential part of maintaining budgets. "Newsweek" says that means a person's failure to pay a traffic ticket could lead to an arrest warrant. A second failure to settle such debts can lead to jail time, even for impoverished defendants.

Debt Buyers

It's difficult to estimate how often debtors are arrested in the United States. The "Star Tribune" says national statistics on such arrests aren't tabulated. Furthermore, the delinquent debts pursued by collectors in such cases are often several years old. Debt buyers try to collect on delinquent credit cards, cell phone bills and other debts that cost them a few cents to purchase from the original creditors. Often, the goal is to not only collect the balance on a delinquent debt, but to also get associated interest charges and fees on an account.