A recent article in the Wall Street Journal reveals that more than 5,000 arrest78480035.jpg warrants were issued since 2010 in the one-third of all U.S. States that allow creditors to place debtors in jail for not paying a debt. Nebraska does not allow this procedure, however, a debtor who fails to attend an Order in Aid of Execution hearing may be arrested for not attending the hearing. To make matters worse, due to a lack of notice, many debtors are unaware that they have been sued let alone that they had to attend a court hearing.

What is an Order in Aid of Execution hearing?

After obtaining a judgment, a creditor may schedule a court hearing to require a debtor to testify as to what they own and where they work. These hearings are commonly called "debtor exams" and they are used to inform a creditor as to where they should send a garnishment. A creditor must mail the debtor a notice of the hearing and the notice includes a warning that failure to attend may result in a warrant for arrest being issued. The problem is, many debtors never actually receive the notice of this hearing, and many judgments were obtained by serving notice to a debtor's prior address.

The typical nightmare story I hear from time to time is that a debtor is pulled over for a routine traffic violation, and is then hauled off to jail because of the outstanding warrant. I've had clients spend an entire weekend in jail until a judge was available to perform the debtor's exam.

What should I do if a warrant has been issued against me?

If an arrest warrant has been issued against you, the best action is to call the attorney for the collection company to schedule a debtor's exam. Many collection attorneys will take down the information over the phone and then cancel the warrant. If the attorney is not available, call the courthouse to schedule a time to attend a hearing.

How can I find out if an arrest warrant has been issued against me?

Some Nebraska counties have online searches to check for arrest warrants, such as Douglas or Lancaster County. A phone call to the County Sheriff should also provide that information.

Will filing bankruptcy cancel the arrest warrant?

Since filing bankruptcy discharges the underlying debt, most collection attorneys will cancel the arrest warrant upon receiving the bankruptcy notice. However, this is not an automatic procedure and some neglect to cancel the warrant. For this reason, you should verify if a warrant exists and then contact the court or the collection attorney and then verify with your bankruptcy attorney that the warrant is canceled.