By
Kenneth Long on November 23, 2011
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In what she calls a perverse misuse of the courts, Lisa Madigan is pushing state court judges to stop authorizing arrest warrants for debtors who fail to show up in court. The AG is convinced debt collectors are abusing this practice which allows for arrest of those who intentionally defy court orders.
Over a third of states allow the use of misdemeanor arrest warrants to force debtors to comply with court orders to repay their debt. The purpose is to give power to the courts who demand repayment of defaulted debts.
Debtors frequently fail to appear at court hearings in which they owe debt. Without a defense, the judge normally grants a default judgment to the plaintiffs.
Arrest warrants can be requested in certain instances in which there is reason to believe that the debtor intentionally is defying a court order to repay the debt. If the plaintiff convinces the judge that the debtor is hiding assets or is otherwise able but unwilling to pay, the judge may agree to issue a misdemeanor arrest warrant.
According to Illinois Attorney General Lisa Madigan, some debt collectors are beginning to abuse the practice, essentially turning the state's sheriffs deputies into agents for debt collection. Often these debtors are picked up on unrelated charges or stopped for simple traffic violations, at which point they are arrested on the spot and taken back to jail to meet with the magistrate.
Back in March 2011, Debtors Unite ran a story explaining that there are
no longer debtors prisons, but that arrests are still possible. While most states disallow the practice, some do still allow for arrest. This is generally only allowed when the court has reason to believe that the debtor is able to pay but refuses to comply with the court's decision.
If you find yourself facing a judgment, it is normally best to attend the court hearing and defend your position. If you fail to show up, you automatically lose. Instead, you should provide some defense and try to preserve your rights. If you believe you do not owe the debt, then some legal representation might be advisable.
Of course, often the best option is to avoid court altogether. Finding a compromise with your debt collector can help you both reduce costs and could keep a judgment off of your public record and credit report.
Illinois' attorney general is fighting the proliferation of arrest warrants for unpaid debts. While this is not a legislative solution, it could make it more difficult for debt collectors to convince the courts that arrest is necessary.