Can I Get Sent to Jail for Unpaid Debt?

Prior to the mid-1800s, many Americans would spend several months, if not years, in "debtors' prisons": facilities where individuals were incarcerated to pay back part or all of their personal debts. Since then, the federal government and most states have outlawed imprisonment for unpaid debt. That said, there are instances where aggressive debt collectors can parlay civil court rulings into criminal penalties, including incarceration.

Civil Court

• When a debt goes unpaid, the creditor typically sends the debtor written notifications and tries to contact her by phone. If these attempts to contact her don't result in the debt being paid, the lender can file a lawsuit in civil court. Under current law, a creditor cannot call the police and attempt to charge her with a crime.

Way to Get Arrested #1: Fail to Appear in Civil Court

• Once the civil lawsuit has been filed, a process server must hand deliver the notice to the debtor. If the debtor doesn't appear at the hearing, a default judgment will be made against him. Similarly, if the debtor appears in court and either pleads guilty or pleads not guilty and loses, a judgment will be made against him.

  After a judgment has been filed, a followup court date will be assigned. The debtor is required by law to appear in court on this date because the judge will need to assess the debtor's ability to repay the debt and because the debtor needs to fill out forms that will list his assets and allow for wage garnishment.

  If the debtor fails to appear in court, a "body attachment" will be ordered by the judge. While not technically the same as an arrest warrant, a body attachment still involves the debtor being taken into police custody, processed at the nearest jail and held until he can post bond.

Way to Get Arrested #2: Refuse to Answer Questions During an Asset Discovery Hearing

• If the debtor still doesn't make payments after the civil court judgment, the creditor can file a Citation to Discover Assets, which requires the debtor to appear in court to answer questions about her assets and finances. As the statements during this hearing are considered "under oath," the creditor can use them to identify assets that can be used to repay the debt.

  If the debtor doesn't appear for this court-ordered appearance, a body attachment will be ordered. If the debtor appears but refuses to answer certain questions about her assets, the judge can find her in contempt, which results in the debtor being sent to jail.

Way to Get Arrested #3: Refuse to Make Court-Ordered Payments

• If the judge finds that the debtor has the assets or means to make the payments, a payment order is rendered. If the debtor still doesn't make payment, the creditor can file a "Rule to Show Cause" hearing. During this court-ordered appearance, the debtor must explain why, even after the judge found that he was able to make payments, he still did not comply. If judge finds that the debtor's reasons are insufficient, the debtor will be charged with willful contempt of court. In such an event, the debtor may even be required to remain in jail until he has paid off the balance of the debt.

Size Does Not Matter

• When you violate a court order, the size of the underlying debt does not affect the penalty. Whether the creditor is suing over a debt of $250 or $24,000, failing to make a required appearance or refusing to make court-approved payments will result in imprisonment. Although the debt amount leading up to the court orders were different, the law being broken is the same.