Contempt of court is an effective method to collect a debt. You thought that you could ignore a lawsuit. Consider this scenario. Perhaps you think you can do nothing and simply let a home go back in foreclosure. Additionally, you might think there is only a default judgment. But, if you think that, you are wrong!
Instead, you can go to jail for contempt of court in Kentucky by ignoring court paperwork. Debtor’s prisons were abolished in 1833 in Kentucky. Now, except for child support or taxes, jail is never used to punish someone for not paying. However, our Jefferson circuit court judges will jail people for failing to appear in court. Additionally, if you just walk away from a home, fines for housing code violations might also put you in jail.
Contempt of Court for Default Judgements
So, debt collectors in Kentucky often ask a judge for jail time when you do not respond to a summons to appear in court for questioning. People do not generally go to jail for not paying a bill. But contempt allows debt collectors to put a person in jail until a debt is paid. The bond you pay to get out of jail is almost always equal to the debt and the debt collector then attaches the bond if you fail to appear. They continue to use contempt and jail as a debt collection technique.
⎆ Debt collector contempt of court for default judgements strategy.
The following is how a debt collector uses contempt of court for default judgments to collect a debt:
The debt collector files a lawsuit legitimate or not so legitimate.
If a debtor is served with the complaint that also requests that the debtor files an answer within 20 days. However, if the debtor ignores the judge’s order to answer within 20 days, then the debt collector gets a default judgment.
Then the debt collector’s attorney files discovery after his judgment. This includes interrogatories and a request for production of documents asking the debtor for information about the location of his assets. Sometimes the Debt collector asks for a hearing requesting that the debtor appear to answer these questions.
The debtor ignores and does not answer or appear in court (this attitude angers the judge).
The debt collector, then asks for an order of contempt of court and specifically jail time to force you to appear. The bail often equals the amount of the debt to get out of jail.
If the debtor raises bail money to get out of jail, the debt collector simply attaches the bail bond or deposit. The debt collector always expects the debtor to assume and ignore these court orders. The contempt of court came from ignoring the orders of the court to answer discovery.
⎆ How your bankruptcy attorney can help you.
This technique is popular with debt buyers who purchase charged-off debts for pennies on the dollar. Debt collectors sue collecting the interest, attorney fees, court costs, and the full principle. “Zombie debt” buyers will buy bankrupted debts and attempt collection regardless of the discharge.
These zombie debt buyers often purchase debts after the statute of limitations has run on the debt. They start by attempting to collect from debtors who file bankruptcy. They might even lack any proof the debtor owes the debt. What collectors and foreclosure servicing companies are doing is legal but they rely on debtors to give up and ignore lawsuits. Also, be aware that a collection lawsuit involves weeks and months of work. So, just because you don’t hear anything doesn’t mean the clock isn’t ticking so, don’t ignore a lawsuit.
If you are thinking about filing bankruptcy, don’t delay because timing is often crucial. Don’t trust the bank or their attorney for advice. I am here to help you. So, contact my office right away to start the conversation. Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905.
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Nick C. Thompson
Nick used to work for the banks before becoming an attorney. He is a former tax department attorney and assistant county attorney. He has filed bankruptcy cases and defended foreclosures since 1988.
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Contempt of Court for Default Judgements
Contempt of Court for Default Judgements
