Loans and Debt; A Vicious Financial Cycle
St. Louis, MO – Reports state that Payday Lenders in Missouri have been using the civil court process to effectively create a modern-day debtors’ prison. While jail time for private commercial debt is generally not available, reports state that residents are, in fact, regularly being jailed over their private debts.
Jail time comes into play after the creditor obtains a judgment against the debtor. The creditor then summons the debtor to appear at a Debtor Examination to seek out assets to satisfy the judgment. If the debtor fails to appear, the creditor may request the court hold the debtor in contempt, and thus jail time.
Bankruptcy can eliminate the horror of the above example. A Bankruptcy filing would immediately “stay” any debt collection activity and/or court proceeding. The underlying debt would be eliminated and forever discharged. Bankruptcy is law of the United States of America, embodied in Title 11 of the United States Code. Any inconsistent law of any state is superseded.
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