According to a recent article by Chris Serres at the Minnesota Star Tribune, courts still order debtors to go to jail when they can't afford to pay a judgment.
Not only are the national media largely unaware of this phenomenon, but The New Yorker published an article last April that characterizes debtors' prisons as a pre-20th Century institution, and describes the America as a refuge for debtors.
As many as two out of every three Europeans who came to the American colonies were debtors on arrival. Some colonies were, basically, debtors’ asylums. By the seventeen-sixties, sympathy for debtors had attached itself to the patriot cause.
Jill Lepore of The New Yorker goes on to describe how American treatment of debt has evolved to allow bankruptcy and why this is a good thing.
Debtors’ prison was abolished, and bankruptcy law was liberalized, because Americans came to see that most people who fall into debt are victims of the business cycle, and not of fate or divine retribution.
Even Wikipedia describes debtors' prisons as a thing of the past, or at least an unconstitutional one, according to this 2009 New York Times editorial, "The New Debtors' Prisons."
20th Century Debtors' Prison
Times have changed. To be sure, most Americans who are deep in credit card debt do not have bench warrants issued for their arrest. However, in Illinois, Indiana and other states, a person who's gotten a judgment entered against them can miss a court date and find themselves being hounded by the police.
What about the argument that defendants may owe the money they are being sued for, and should have gone to court? Perhaps the threat of jail is the only way to make them appear in court.
Reporters from The New York Times and The Federal Trade Commission have found that the collection industry is in dire need of repair, and cited numerous, ubiquitous problems. Some of these problems are startling. To wit:
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