September 4th, 2009 by Reed Allmand 
The Consumer Law & Policy blog has a very revealing article about a judge in Indiana that took it upon herself to give indigent debtors a choice–”pay up” or “go to jail.”
The blog writer provided the transcript of an exchange between the debtor and the judge:
The Court: “So we’re here today for you to explain what you’re going to do to pay this off.”
Mr. Button: “I can’t.”
The Court: “Okay, but you’re going to.”
Mr. Button: ” I can’t do it.”
The Court: “Okay, Mr. Button.”
Mr. Button: “Yes, Ma’am.”
The Court: ” For some reason we’re not communicating. Alright, you’re not hearing me for some reason. I am telling you that, yes, you will. You’re going to tell me how you’re going to go about doing that. And I’m not going to accept I cannot, and if the next words out of your mouth are I cannot, Mr. Button, then you’ll set with Mr. Glenn at the Sheriff’s Department until you find a way that, yes, you can. So what kind of payments can you make to pay this down?”
Mr. Button: “Five dollars ($5.00) a month.”
The Court: “Five dollars ($5.00) a month is—I’m going to be an old woman before this is ever paid off.”
Mr. Button: “That’s what I can afford, ma’am. I live on social security disability. I’ve got to pay my rent and my lights and my gas.”
The Court: “I’m going to order you pay twenty-five dollars ($25.00) a month until this is paid off. I’m going to show that we are to come back March 12, at 1 o’clock, at which time Miss James is going to tell me that she has already received fifty dollars ($50.00) towards this. Okay.”
Fortunately, this judge’s ruling was overturned; but I have a sneaky suspicion that she’s not the only justice enforcing a “backdoor” debtor’s prison policy. The failure to pay a debt is a civil matter and a debtor cannot be sent to prison for simply failing to pay or even worse, having the inability to pay. Of course, if there is a court order and the debtor fails to follow the court order, that’s a different story. But even in the case of a court order, bankruptcy may protect a debtor. By filing bankruptcy a debtor can avoid a situation like the one encountered by the indigent debtor. If a debtor files Chapter 7 bankruptcy, his/her debts are completely discharged and creditors can never use the law in this manner to collect on the discharged debt. For those of you hesitating about bankruptcy, please honestly assess your situation. If you cannot pay and the creditors are getting aggressive, you probably should speak with a bankruptcy attorney regarding your bankruptcy options.
Source: Consumer Law & Policy Blog
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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