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Can You Be Arrested For Debt?

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Can You Be Arrested for Indebtedness?

It is not common to be charged with debts, you can only be being sued. However, in certain states, you could be detained for failure to comply with an order of a judge.

By Sean Pyles Senior Writer | Personal financial, financial debt Sean Pyles leads podcasting at NerdWallet as the producer and host of the NerdWallet’s «Smart Money» podcast. On «Smart Money,» Sean talks with Nerds across the NerdWallet Content team to answer listeners’ personal finance questions. With a focus on shrewd and actionable money advice, Sean provides real-world guidance to help people improve their financial lives. Beyond answering listeners’ money questions on «Smart Money» Sean also interviews guests outside of NerdWallet and also creates special segments to explore topics like the racial wealth gap, how to start investing and the history of student loans.

Before Sean was the host of podcasts at NerdWallet the company, he also wrote about topics that dealt with consumer debt. His work has appeared on USA Today, The New York Times and other publications. When Sean isn’t writing about personal finances, Sean can be found digging around his garden, going for runs and taking his dog on long walks. He lives within Ocean Shores, Washington.

Aug 5, 2021

Edited by Kathy Hinson Lead Assigning Editor Personal financial, credit scoring, debt and money management Kathy Hinson leads the core personal finance team at NerdWallet. In the past, she worked for 18 years working at The Oregonian in Portland in capacities such as chief of the copy desk and team leader for design and editing. Prior experience includes news and copy editing at many Southern California newspapers, including the Los Angeles Times. She graduated with a bachelor’s in mass communications and journalism from Iowa’s University of Iowa.

Many or all of the products featured here come from our partners, who pay us. This affects the products we write about as well as the place and way the product is featured on a page. However, it does not affect our assessments. Our opinions are entirely our own. Here is a list of and .

You aren’t liable to arrest just because you owe money that you would consider to be consumer debts: a credit card, loan or medical invoice. Legally, they can’t threaten the person with arrest. But they do have other legal recourses like suing you to demand payments.

In some cases, this kind of debt may cause arrest on other charges, such as fraud, theft or defying a court’s order.

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Threats of arrest by collectors are not legal

At one time, people could be jailed simply because they owed money, but debtors’ prisons were illegal in the United States since the mid-1800s.

Additionally, the law legislation of 1977 bans debt collectors from intimidating or misleading consumers, and that includes threats of arrest. Alongside the rules regarding what debt collectors are allowed to say it also limits the manner and when they can contact you.

But debt collectors may also use the legal system

Debt collectors cannot take you into custody however they may pursue you for payment which is often their most efficient legal recourse. Many thousands of civil lawsuits involving debt are filed each year and often without any documentation to ensure accuracy about how much is owed and who has to pay it.

A mere 10 percent of people who are in debt are represented by an attorney when being sued for debt. A lot of people don’t respond to lawsuits at all, usually resulting in a default judgment that can result in either a bank levy, or either.

If you’re sued by default.

If you are served with a court summons, do not ignore it. Sometimes, just going to the courthouse and asking the collector to prove it is suing the correct person with the correct amount can end the case, or to get it settled for less.

Legal loopholes can lead to an arrest

There are a couple of situations where aggressive creditors may make use of legal loopholes in order to request or threaten to arrest for debt-related issues:

In around one-third of the states that debtors can be detained when they don’t adhere to a court order that resulted from the filing of a lawsuit. Also the debtor won the case before the court or did not show up, or was required to pay, but failed to. The reason for the arrest is to defy the court, not owing the money.

Certain payday lenders pursue or threaten arrest in the event that an individual’s payment check is bounced, typically claiming intentional fraud.

Rent-to-own furniture companies sometimes pursue arrest for consumers who fail to pay, but who refuse to return the furniture.

What you can do

If you’re being harassed by an aggressive debt collector:

Be skeptical: Get the facts straight, including whether the debt is yours or not and the correct amount by .

Take your stand Do not be enticed by an uninformed decision. Make time to figure out the best method to .

You have rights. Contact debt collectors who are harassing you to the .

>> MORE:

The author’s bio: Sean Pyles is the director of production and host on NerdWallet’s Smart Money podcast. His writing has appeared on The New York Times, USA Today and elsewhere.

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