They will probably sell the debt to a collection agency, and theyâve started using shady tactics to get people jailed,
âAll U.S. states prohibit imprisonment for failure to pay civil debts, like past-due utility bills or student loans. However, local judges are authorized to hold debtors in contempt of court for alleged failure to comply with orders like in-court examinations or  installment payment plans, the report said.
This means debtors may face contempt citations and jail for disobeying court orders designed to satisfy money judgments, not for the original judgments themselves. âFor debtors, this technical distinction matters little,â the report said.
In 44 states, local judges are authorized to issue arrest warrants for debtors who fail to make post-judgment appearances in court or fail to provide information about their finances, the report said.
The total number of arrest warrants is unknown because the states and courts generally donât track them as a distinct category. However, data obtained by the ACLU showed that judges approved more than 8,500 arrest warrants for debt-collection proceedings in three states and four counties during 2016.
The ACLU examined more than 1,000 cases in 26 states where judges issued arrest warrants for debtors, sometimes to collect as little as $28. The report documented more than 20 cases, including some reported by media organizations, in which debtors had been jailed.â
https://www.usatoday.com/story/money/2018/02/21/some-u-s-borrowers-jailed-over-civil-debts-aclu-report-shows/354867002/
Years ago, I also read about debt collection companies suing for money while also taking steps (or not taking steps) to ensure the defendant didnât show up to court, so the defendant would be found in contempt and a warrant would be issued, but Iâm having trouble finding the news article I originally read.