March 29, 2024

New Debtors Prisons?

This article from the Wall Street Journal seems to indicate that people are being sent to jail for failing to pay debts.  I practice law in Texas, and I know that in Texas a person can not be jailed for failing to pay a debt.  However, people can be jailed for failing to comply with a court order, such as an order to appear in court at a hearing, or to hand over certain documents requested by the creditor.  Most states allow garnishment of wages (Texas does not), so I guess in most states you could be jailed for failing to follow a court order to hand over a percentage of your wages.  But, to my knowledge, no state allows people to be jailed just for not paying debts.  I think there would be a Constitutional problem with that.

 

http://online.wsj.com/article/SB10001424052748704396504576204553811636610.html?mod=WSJ_hp_editorsPicks_3

Terms of Use - This website and all contents copyright 2011

Do not rely on this website for making decisions regarding bankruptcy. This website is intended for general information purposes only, and does not create an attorney - client relationship.