QUESTION
Can I go to jail for defaulting a car title loan?
Asked on Jan 22nd, 2014 on Bankruptcy - Alabama
More details to this question:
Can I go to jail for defaulting a car title loan in Alabama? I left the state as my uncle was sick with tuberculosis I have tried multiple times to offer payment from sending money order to sending my sister in to pay for my loan but them refusing all options. Now I’m afraid to go get a tag because they calling my friends telling them there’s a warrant for my arrest for defaulting on my car title I’m from Alabama. I was thinking to tell them come get the car but afraid to now. I been upset with my uncle being sick and I help on taking care of him. And this please what can I do I don’t need to go to jail nor warrant.
1 ANSWER
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It's highly doubtful that there is a warrant out for your arrest. The U.S. Supreme Court has ruled that "debtor's prison" is unconstitutional, and thus no one can be arrested and incarcerated for simply owing a debt. If there is any element of fraud, however, then it's possible that the creditor could have filed charges against you. But assuming that you're just behind on the loan payments and the creditor has no reason or evidence suggesting fraudulent activity on your part, then there can't be a warrant out for your arrest for merely defaulting on a loan. Additionally, there are many restrictions on how a debt collection agency or creditor may attempt to collect a debt that is owed. Harassment and making false claims is often illegal, and you may be entitled to damages if it can be proven that the collection agency or creditor has acted in an illegal manner. This would be something that you would need to speak to a debt collection or plaintiff's attorney about, but as far as a warrant being issued for your arrest, I seriously doubt that this has occurred.
Answered on Jan 24th, 2014 at 7:10 AM