The
Minneapolis Star-Tribune has a
story about the return of debtors' prison in Minnesota and other states, well not actually debtor's prison but certainly incarceration for owing money and not making, in some cases court-ordered payments. The following lengthy excerpt is from Chris Serres and Glenn Howatt's terrific article:
"It's not a crime to owe money, and debtors' prisons were abolished in the United States in the 19th century. But people are routinely being thrown in jail for failing to pay debts. In Minnesota, which has some of the most creditor-friendly laws in the country, the use of arrest warrants against debtors has jumped 60 percent over the past four years, with 845 cases in 2009, a Star Tribune analysis of state court data has found.

Not every warrant results in an arrest, but in Minnesota many debtors spend up to 48 hours in cells with criminals. Consumer attorneys say such arrests are increasing in many states, including Arkansas, Arizona and Washington, driven by a bad economy, high consumer debt and a growing industry that buys bad debts and employs every means available to collect. Whether a debtor is locked up depends largely on where the person lives, because enforcement is inconsistent from state to state, and even county to county. In Illinois and southwest Indiana, some judges jail debtors for missing court-ordered debt payments. In extreme cases, people stay in jail until they raise a minimum payment. In January, a judge sentenced a Kenney, Ill., man 'to indefinite incarceration' until he came up with $300 toward a lumber yard debt.
'The law enforcement system has unwittingly become a tool of the debt collectors,' said Michael Kinkley, an attorney in Spokane, Wash., who has represented arrested debtors. 'The debt collectors are abusing the system and intimidating people, and law enforcement is going along with it.'
How often are debtors arrested across the country? No one can say. No national statistics are kept, and the practice is largely unnoticed outside legal circles. 'My suspicion is the debt collection industry does not want the world to know these arrests are happening, because the practice would be widely condemned,' said Robert Hobbs, deputy director of the National Consumer Law Center in Boston.
Debt collectors defend the practice, saying phone calls, letters and legal actions aren't always enough to get people to pay. 'Admittedly, it's a harsh sanction,' said Steven Rosso, a partner in the Como Law Firm of St. Paul, which does collections work. 'But sometimes, it's the only sanction we have.'
Taxpayers foot the bill for arresting and jailing debtors. In many cases, Minnesota judges set bail at the amount owed. In Minnesota, judges have issued arrest warrants for people who owe as little as $85 -- less than half the cost of housing an inmate overnight. Debtors targeted for arrest owed a median of $3,512 in 2009, up from $2,201 five years ago.'The law enforcement system has unwittingly become a tool of the debt collectors,' said Michael Kinkley, an attorney in Spokane, Wash., who has represented arrested debtors. 'The debt collectors are abusing the system and intimidating people, and law enforcement is going along with it.'
How often are debtors arrested across the country? No one can say. No national statistics are kept, and the practice is largely unnoticed outside legal circles. 'My suspicion is the debt collection industry does not want the world to know these arrests are happening, because the practice would be widely condemned,' said Robert Hobbs, deputy director of the National Consumer Law Center in Boston.
Debt collectors defend the practice, saying phone calls, letters and legal actions aren't always enough to get people to pay. 'Admittedly, it's a harsh sanction,' said Steven Rosso, a partner in the Como Law Firm of St. Paul, which does collections work. 'But sometimes, it's the only sanction we have.'
Taxpayers foot the bill for arresting and jailing debtors. In many cases, Minnesota judges set bail at the amount owed. In Minnesota, judges have issued arrest warrants for people who owe as little as $85 -- less than half the cost of housing an inmate overnight. Debtors targeted for arrest owed a median of $3,512 in 2009, up from $2,201 five years ago."
_____________________________
Over the last couple of decades credit card companies and banks made it increasingly difficult to discharge debt in bankruptcy. These debt collection practices resulting in incarceration
directly stem from those bankruptcy "reforms" of the system, with banks and credit card companies selling their bad debt to debt collection rackets. These operators utilize what amounts to legalized "extortion" to generate revenues.
Let me make a further allusion to the
Talmud, the "oral law" which by tradition was "received" by Moses. Financial obligation is supposed to expire every 7th year. The idea seems to me to be designed to allow a functioning economy, predictability and decency. With debtors' imprisonment, we are moving backwards.
Ghastly!