Uncollectable Judgment

THE POWER OF CONTEMPT TO ENFORCE JUDGMENTS

Can you go to jail for unpaid debt? Behind bars for skipping out on your bills? Technically, imprisonment for unpaid debt is unconstitutional.  In fact, the Federal Fair Debt Collection Practices Act specifically prohibits debt collectors from threatening seizure of property or imprisionment on civil matters unless the ability to take such action is lawful and the creditor intends to take such action.

Because, just like life, with the Constitution and laws, there are caveats, and one or more of those may be the reason you, or someone you know, ended up locked behind bars.  

From employers refusing to pay employees to "deadbeat dads" skipping out on child support, the court has held that these individuals are in contempt of court and thus imprisoned for failing to pay debts.

COLLECTING THE UNCOLLECTABLE

COLLECTING THE UNCOLLECTABLE

Collecting on the "Uncollectable"

Donald Sterling's wife is suing his alleged mistress to recover community property, claiming that Sterling gave the woman expensive gifts ranging from a Ferrari to a $1.8 million duplex without her permission. See the article in the  LA Times.

So what's wrong with that? He's not allowed to buy someone gifts?

California, along with eight other states, is governed by the community property system, meaning each spouse shares equally in the profits and income earned, regardless of who actually acquired the property. Therefore, those pricey purchases from the disgraced Clippers owner were allegedly acquired with community property funds also owned by Rochelle Sterling without her knowledge.