CAN I BE ARRESTED FOR NOT PAYING MY CREDITORS

I recently received a call from a potential client wishing to file bankruptcy because he received a letter in the mail, from the court, stating that if he did not pay his credit card debt he would be arrested. I had to stop and think for a second, “does Maryland have a debtor’s prison that I somehow missed.” Of course NOT!!!!

This is not the 1800s and you are not going to jail for not paying your creditors. With the exception of not paying certain taxes, child support, fraudulent debts, and criminal-related fines, in most states debtor’s prison is not an option.

The last known instance of debtor’s prison in the United States was in 1833 when it was eliminated by federal decree. Sure, a garnishment may be levied against you, the items securing the debt may be repossessed, and you may wish you were in jail after taking home a pay check that is 25% lighter, but, the sheriff will not come to your home and arrest you. Having not seen the letter, I am apt to believe that this “letter from the court” was actually from a debt collection, or debt settlement, agency. With bankruptcy filings the highest they have ever been, debt settlement and debt collection agencies are suffering. It appears that these agencies have resorted to scaring individuals into paying their creditors by threatening them with jail time. Shame on these agencies! Attempting to collect on a debt by threatening jail time is a violation of the Federal Fair Debt Collection Practices Act and you should speak with an attorney about your rights and options under this act.