Quick Answer: Unpaid bills can lead to jail time in Missouri, Illinois, Alabama and other states where debt collectors exploit legal loopholes to arrest debtors who miss court appearances. Illinois has enacted legislation to address this debtors’ prison problem, with other states expected to follow.
Just out is a very interesting video from my friends over at Cambridge Credit Counseling about debtors’ prison and the current realities.
Disturbing new reports indicate that debt collectors in Missouri, Illinois, Alabama and a few other states are using a legal loophole to justify jailing poor citizens who legitimately cannot pay their debts.
It has been troubling that some creditors have been hauling people into court with arrest if they miss a court appearance.
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
I write Your Money Actually most weekdays — actionable money information you will not find anywhere else, and the small decisions that compound. It is free, I sell nothing, and I take no money from any company I write about.
Illinois has taken steps to eliminate this problem, which continues to be a very small issue.
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I suspect the remanning states will take some legislative action to make this problem less of a worry.
The video below gives you a good overview of the problem and the reality of the situation some are facing today.
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