Consumer Law

Debtor's Prison in Indiana

By Alan White

Apparently in the southern counties of Indiana, judges are not in sympathy with our state constitution's ban on imprisonment for debt, which dates back to 1851.  Judgment debtors whose sole income is exempt Social Security, and whose assets fall below the state property exemptions, are summoned to court on show cause orders, and threatened with contempt if they refuse to make payment arrangements.  The Indiana Court of Appeals recently reversed one trial court's judgment ordering an indigent debtor to pay $25 monthly on an ordinary contract debt, or face prison.  HT to student Laura Harris who researched this practice while working at Indiana Legal Services.  Below the break I have reproduced the exchange between the trial judge and the consumer.

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.

Full post as published by CL&P Blog on August 07, 2009 (boomark / email).