What You Need to Know About the Federal Restitution Process and Its Consequences

If you’ve been convicted of a federal crime, federal restitution may be included in your court-ordered sentence. Restitution is a legal obligation that requires defendants to provide financial reparations to compensate victim(s) for harm stemming directly from a crime. This process is designed to ensure that victims receive financial recovery from loss or injury. In the federal system, restitution can apply in a variety of cases, ranging from fraud to violent crimes, and it may be imposed as a part of your sentence. 

To ensure that you are in compliance with government regulations and sentencing guidelines, it is crucial to understand what federal restitution entails. Our team at Evergreen Attorneys can help you gain a better idea of what federal restitution entails, how restitution payments are collected, and address some common questions about the federal legal system to ensure that your rights are protected.

What is Federal Restitution?

Tackling federal restitution can be complex, but with the right legal support, you can effectively navigate this nuanced process. First, it is critical to understand what federal restitution exactly is. Federal restitution refers to a court order requiring a defendant to pay money to the victim(s) of a crime to cover losses directly resulting from the criminal conduct that occurred. Financial reimbursement may be ordered to cover a variety of crime-related costs including but not limited to: lost income, property damage, counseling, medical expenses, funeral costs and other related expenses. It is important to note that restitution is distinct from criminal penalties, court fees, or fines; the purpose of restitution is not to be a punitive order, but rather, acts as compensation for victims’ losses. 

How Does the Federal Restitution Process Work?

The federal restitution collection process involves several key steps, from the court’s initial order to the enforcement of payments. These steps should each be navigated with careful thought. Understanding the process can help you stay compliant and avoid legal complications. Below are the typical steps involved in federal restitution orders:

• Court Order for Restitution

When you are convicted of a federal crime, a judge may order you to pay restitution as a part of your sentence. This decision is made during sentencing and is based on the victim’s losses directly caused by the crime. The amount of restitution decided by the judge based off information provided by the U.S. Probation and Pretrial Services Office (USPO) and the U.S. Attorney’s Office. These offices work together, using financial loss information from the investigative agents and the victim to produce a value for the official court order. After a federal court orders restitution, the USPO takes responsibility for monitoring and enforcing restitution payments. This office works closely with the Victim Notification System (VNS), which helps track payments and ensures victims receive the compensation they’re owed.

• Establishing the Payment Plan

Following a sentence, the court will help establish a payment plan. This plan outlines how restitution will be paid–whether through a lump sum or periodic installments. In some cases, the court may take your financial ability into account to ensure that the payment plan is attainable. The court also has the authority to modify the payment plan if your financial situation changes.

• Monitoring and Payment Collection

Once the payment schedule is established, the USPO takes responsibility for monitoring and ensuring the payments are made. The USPO works with the Clerk of the applicable United States District Court, establishing a system for the tracking and verification of payments. This may be via direct payment or through a third party, such as a restitution fund. This office will work with you to collect the payments from wages, tax returns, or any other accessible sources of income that you may have.

• Victim Notification System (VNS)

Once restitution is ordered, the federal government uses the Victim Notification System (VNS) to keep the victim informed of your payment progress. This system allows the victim to track how much you have paid and what remains outstanding. It also ensures that the victim knows when they receive a payment, offering transparency throughout the process.

• Consequence of Non-Payment

If you fail to comply with your restitution payments, the consequences can be significant. The U.S. Probation Office may notify the court if payments are not being made as agreed. This can lead to additional penalties, such as an extension of probation, parole violations, or even further legal action. In some cases, the government may seek to seize assets or garnish wages to fulfill the restitution order.

Failure to make restitution payments can also affect your release from prison. If you’re on supervised release, the court may extend your supervision period or impose stricter conditions. These measures are designed to ensure that you continue making efforts to pay what you owe.

Can the Government Take My House for Restitution?

It is possible in some cases for the government to take your property to satisfy a federal restitution order, but this process is highly regulated. Typically, restitution is collected through other means, like the sale of assets like real estate, bank accounts, or other valuable property. If you fail to make the required payments, your property may be at risk for seizure and sale. While this may sound daunting, there are legal protections in place for defendants facing restitution. The process for asset forfeiture for restitution must be done through the courts, and certain exemptions may apply depending on your case. If you are facing a situation where you might lose your property, it is wise to consult with an experienced federal restitution lawyer who can provide valuable guidance on protecting your assets.

Can the Government Take My Retirement for Restitution?

Retirement funds are often one of a person’s most valuable assets. These accounts, such as 401(k)s or pensions, can be seized to fulfill a restitution order, though certain rules may apply. The government may be able to garnish retirement funds or take a portion of your retirement savings to pay restitution, however, these accounts are often considered protected assets in some circumstances, so it may be more complicated to access them compared to liquid assets like bank accounts or physical property. If you’re concerned about the possibility of the government accessing your retirement savings for restitution processes, consulting with an attorney is the best move to create safeguards against potential losses.

Do I have to Pay Restitution While in Prison?

Yes, even while incarcerated, you can still be required to pay restitution. In fact, restitution is often collected from a defendant’s prison wages. The Bureau of Prisons (BOP) can garnish a portion of your prison income, such as the small wages earned from work programs, to satisfy obligatory restitution payments. While you may not be able to make large payments from prison, this will not stop you from fulfilling the required charges. Additionally, it is important to note that these payments will not stop after your release from prison; they will continue until the financial obligations are met in full.

If you’re incarcerated and struggling to meet your restitution obligations, our attorneys at Evergreen Attorneys can help you understand how the process works and assist you in negotiating more manageable payment plans.

What Happens If I Don’t Pay Federal Restitution?

• Wage Garnishment: The government can garnish your wages, whether you’re working in prison or after your release, to collect restitution.

• Seizure of Assets: Additionally, the government can seize and liquidate your assets, such as property, bank accounts, and even your retirement accounts, to pay the restitution.

• Extended Supervision: If you fail to pay, you may be subjected to extended probation or parole, which can include more stringent conditions of release.
• Contempt of Court: If you willfully refuse to pay or fail to make a good faith effort to pay restitution, you could face additional legal consequences, including jail time.

Restitution is a serious obligation, and failure to comply can extend the consequences of your conviction far beyond your sentence. Our team at Evergreen Attorneys can help you stay on track with your payments and potentially avoid the harsh penalties that come with non-payment.

Conclusion

Federal restitution is a serious financial obligation that can impact your life long after a conviction. From the potential seizure of your property to the garnishment of wages while incarcerated, the federal government has many tools at its disposal to collect restitution. It is crucial to understand your responsibilities and take the necessary steps to comply with the court’s orders. 

If you’re facing a federal restitution order in Colorado or beyond, it’s crucial to have a knowledgeable attorney on your side. Contact Evergreen Attorneys today to discuss your case and take the first step toward resolving your restitution issues.