Restitution

[Penelope11]

Minnesota

Twelve years ago, "I" was convicted of Theft by Swindle of my employer at the time and served nine months in the workhouse. "I" was also ordered to repay restitution to the tune of 150k, which is slow to pay as I am now on disability. The county I was convicted in transferred the debt to MN Revenue and I have set up a payment plan and have been paying for at least 10 years.

Of course, they have a lien on my house, which I must sell to attend to ailing parents living out of state. I'm not looking to absolve the debt, or accountability, however, in hindsight I see that at the time I failed to recognize the bloated amount being charged to me. I was too embarrassed to fight, or even participate, in my own defense at the time and I now see that my representation was lacking as well.

The lien will take almost all of the proceeds of the sale, closing costs and what is left on the mortgage will eat up the rest and it is my only asset. Do I have any recourse, or any chance of amending the debt amount?

 

[quincy]

Minnesota

Twelve years ago, "I" was convicted of Theft by Swindle of my employer at the time and served nine months in the workhouse. "I" was also ordered to repay restitution to the tune of 150k, which is slow to pay as I am now on disability. The county I was convicted in transferred the debt to MN Revenue and I have set up a payment plan and have been paying for at least 10 years.

Of course, they have a lien on my house, which I must sell to attend to ailing parents living out of state. I'm not looking to absolve the debt, or accountability, however, in hindsight I see that at the time I failed to recognize the bloated amount being charged to me. I was too embarrassed to fight, or even participate, in my own defense at the time and I now see that my representation was lacking as well.

The lien will take almost all of the proceeds of the sale, closing costs and what is left on the mortgage will eat up the rest and it is my only asset. Do I have any recourse, or any chance of amending the debt amount?

You can request that the prosecutor in the county where you were sentenced review your case. You will want to speak to an attorney in Minnesota for help in getting a sentence adjustment. Whether you can get the amount of the court-ordered restitution reduced and/or the lien lifted will depend largely on the prosecutor and the victim.

 

[AlmostThere]

Minnesota

Twelve years ago, "I" was convicted of Theft by Swindle of my employer at the time and served nine months in the workhouse. "I" was also ordered to repay restitution to the tune of 150k, which is slow to pay as I am now on disability. The county I was convicted in transferred the debt to MN Revenue and I have set up a payment plan and have been paying for at least 10 years.

Of course, they have a lien on my house, which I must sell to attend to ailing parents living out of state. I'm not looking to absolve the debt, or accountability, however, in hindsight I see that at the time I failed to recognize the bloated amount being charged to me. I was too embarrassed to fight, or even participate, in my own defense at the time and I now see that my representation was lacking as well.

The lien will take almost all of the proceeds of the sale, closing costs and what is left on the mortgage will eat up the rest and it is my only asset. Do I have any recourse, or any chance of amending the debt amount?

Have you considered renting out your house instead of selling it?

 

[quincy]

Here are links to the Minnesota statutes on restitution and sentence adjustments:

https://www.revisor.mn.gov/statutes/cite/611A.04

https://www.revisor.mn.gov/statutes/cite/609.133

 

[adjusterjack]

The lien will take almost all of the proceeds of the sale, closing costs and what is left on the mortgage will eat up the rest and it is my only asset. Do I have any recourse, or any chance of amending the debt amount?

I suggest you consult a bankruptcy attorney. Not to file bankruptcy, though that may be an option. But for a bankruptcy attorney's knowledge about MN's generous homestead protection against creditors, which was $510,000 when the statute was last updated and may be higher now.

See 510.01:

https://www.revisor.mn.gov/statutes/cite/510/pdf

I have no idea whether this would apply to restitution, which is why consulting an attorney is vital if there is a chance that you can keep part of the equity once the mortgage gets paid off.

I caution you against renting out the home as you would lose that exemption.

 

[quincy]

I suggest you consult a bankruptcy attorney. Not to file bankruptcy, though that may be an option. But for a bankruptcy attorney's knowledge about MN's generous homestead protection against creditors, which was $510,000 when the statute was last updated and may be higher now.

See 510.01:

https://www.revisor.mn.gov/statutes/cite/510/pdf

I have no idea whether this would apply to restitution, which is why consulting an attorney is vital if there is a chance that you can keep part of the equity once the mortgage gets paid off.

I caution you against renting out the home as you would lose that exemption.

Court-ordered restitution cannot be discharged in bankruptcy.

 

[Mark_A]

Court-ordered restitution cannot be discharged in bankruptcy.

We thought federal student loan debt couldn't be discharged in bankruptcy (because the federal law prohibits that) until Biden issued all those executive orders, discharging much of it even without bankruptcy.

 

[adjusterjack]

Court-ordered restitution cannot be discharged in bankruptcy.

Maybe not, but OP should get that confirmed by a bankruptcy attorney after a thorough review.

Right?

 

[quincy]

We thought federal student loan debt couldn't be discharged in bankruptcy (because the federal law prohibits that) until Biden issued all those executive orders, discharging much of it even without bankruptcy.

Trump reversed all of that with his own executive orders.

As the law stands currently, court-ordered restitution is not dischargeable in bankruptcy. But, sure, a bankruptcy attorney could be consulted to verify.

 

[Mark_A]

Trump reversed all of that with his own executive orders.

The US Supreme Court ruled in 2023 that the Biden administration overstepped its authority when it announced that it would cancel up to $400 billion in student loans. The Biden administration had said that as many as 43 million Americans would have benefitted from the loan forgiveness program; almost half of those borrowers would have had all of their student loans forgiven. Chief Justice John Roberts wrote for the court in Biden v. Nebraska, characterizing the decision as a straightforward interpretation of federal law.

However, even after that Supreme Court ruling, Biden issued new slightly different orders to cancel student debt as he was leaving office. Instead of filing a new case with SCOTUS, the Trump administration simply reversed the Biden executive order with a new executive order, but it does not reverse any of the billions of dollars of student debt already forgiven by Biden.

Federal student loans are one of the few forms of debt that cannot be cancelled in bankruptcy, notwithstanding what Biden illegally did.

 

[quincy]

Here is support for my statement that restitution is not dischargeable in bankruptcy:

11 USC 523:
https://www.law.cornell.edu/uscode/text/11/523

479 US 36:
https://m.openjurist.org/479/us/36

Although homestead protection seems something worth exploring, I believe that trying to get a sentence adjustment could be the best option.

 

[LdiJ]

I also suspect that the court would have required the OP to sign off on the lien. If so, that would make the whole argument moot.

 

[quincy]

I also suspect that the court would have required the OP to sign off on the lien. If so, that would make the whole argument moot.

? I don’t know what you mean by “signing off on the lien.” A creditor does not require the approval of the debtor to place a lien on the debtor’s property.

 

[zddoodah]

Twelve years ago, "I" was convicted of Theft by Swindle of my employer at the time and served nine months in the workhouse. "I" was also ordered to repay restitution to the tune of 150k, which is slow to pay as I am now on disability.

Why do you have the first two instances of the word "I" in quotation marks but not the third instance (along with every other instance in your post)?

Do I have any recourse, or any chance of amending the debt amount?

No one here has any chance of answering this question intelligently. Take all of the paperwork relating to your conviction, the restitution order and the establishment of the lien to a local attorney for review and advice. It wouldn't surprise me if the state would be willing to accept a reduced lump sum.

 

[quincy]

Why do you have the first two instances of the word "I" in quotation marks but not the third instance (along with every other instance in your post)?




No one here has any chance of answering this question intelligently. Take all of the paperwork relating to your conviction, the restitution order and the establishment of the lien to a local attorney for review and advice. It wouldn't surprise me if the state would be willing to accept a reduced lump sum.

It could depend on how much of the ordered restitution already has been paid to the victim. I agree that consulting with a local attorney for a personal review is a good first step.