Bankruptcy news of the day:

An article from CBSnews.com.

Excerpt: “Thousands of Americans are sent to jail not for committing a crime, but because they can’t afford to pay for traffic tickets, medical bills and court fees.

If that sounds like a debtors’ prison, a legal relic which was abolished in this country in the 1830s, that’s because it is. And courts and judges in states across the land are violating the Constitution by incarcerating people for being unable to pay such debts….

Roughly a third of U.S. states today jail people for not paying off their debts, from court-related fines and fees to credit card and car loans, according to the American Civil Liberties Union. Such practices contravene a 1983 United States Supreme Court ruling that they violate the Constitutions’s Equal Protection Clause.

Some states apply “poverty penalties,” such as late fees, payment plan fees and interest, when people are unable to pay all their debts at once. Alabama charges a 30 percent collection fee, for instance, while Florida allows private debt collectors to add a 40 percent surcharge on the original debt. Some Florida counties also use so-called collection courts, where debtors can be jailed but have no right to a public defender. In North Carolina, people are charged for using a public defender, so poor defendants who can’t afford such costs may be forced to forgo legal counsel.

The high rates of unemployment and government fiscal shortfalls that followed the housing crash have increased the use of debtors’ prisons, as states look for ways to replenish their coffers….

Keep reading at the link below!

Credit to original article: http://cbsn.ws/10fNagW