What happens if I don't pay off these debts?

It depends. Different types of debts have different consequences if you don’t pay them off. The consequences are also affected by the amount of debt you owe, how old the debt is, and which agency is trying to collect from you (for example, whether your debt is still with the court, with county collections, with a private collection agency, or with the Franchise Tax Board).

In the previous section we explained what can happen if you don’t pay debts that are conditions of your supervision. This section will explain other consequences you may face if you don’t pay off your court-ordered debts (whether you are on supervision or not).

Debt Collection:

If you owe unpaid restitution, fines, or court fees, the people or agencies that you owe (i.e. the victim, the victim’s family, the Victim Compensation Board, the Franchise Tax Board, private collection agencies) can try to collect the unpaid debt in the following ways:[2193]

    Wage garnishment—If you are employed, a portion of your wages (up to 25%) can be automatically taken out (withheld) from your paycheck to pay your court-ordered debt. Money can continue to be taken from your paycheck until you have paid off the full amount you owe.[2194] (For more information about what to do if your wages are being garnished by the Franchise Tax Board, see PG. 676.)
    Property lien—If you own property (like a car or a house) a lien can be put on your property. A lien gives the person (or agency) that you owe the right to claim your property to satisfy the debt you owe them. If you have a lien on your property, you may not be able to sell that property until you have paid off the amount you owe. If you DO sell the property, you will have to give over the money from the sale to the person you owe.[2195]
    Lien on your bank account—If you have a bank account, a lien can be put on the account. You will not be able to access the money in your account, and any checks you write from the account will bounce until the lien is removed.[2196]

All of these actions can lower your credit score, which can make it harder to get a loan, rent an apartment, or find a job.

NOTE: Inheritance money—If you receive an inheritance during or after your incarceration from a family member or loved one, the CDCR can take that money to satisfy your court-ordered debt. For more information, see Appendix A, PG. 684.

Other possible consequences:

There are other possible consequences of unpaid or overdue debt, but everyone’s situation will be different. Some other ways that you may be negatively impacted by unpaid court-ordered debt are:

    It can be harder to get a professional or occupational license, which is required for many types of jobs. For example, you need an occupational license to work as a barber, beautician, nurse, or contractor. (For more information on professional/occupational licenses, see the EMPLOYMENT CHAPTER, PG. 601.)
    The Franchise Tax Board can seize any state tax refunds, lottery winnings, or other income to pay off your restitution and fine obligations.[2197]
    If you are ordered to appear in court because you have not paid your court-ordered debt, and you do not go to court, you could be arrested and charged with a misdemeanor.[2198]
    Important: If you have not made payments, you won’t be arrested simply for not paying. However, if a judge has ordered you to come to court and explain why you are not paying, you can be arrested for not going to court.
    If you receive an “order to appear,” you MUST go to court on the day and time listed in the order. Even if you don’t have any money to make the payments, it is very important that you attend this court hearing.
    Unpaid restitution and/or other fines can make it harder, to get your conviction dismissed under California’s “expungement” statute.[2199] But, you cannot be denied a mandatory dismissal of your conviction just because you have unpaid victim restitution. (For more information, see PG 962 in the UNDERSTANDING & CLEANING UP YOUR CRIMINAL RECORDS CHAPTER, beginning on PG 931).

IMPORTANT: NEW LAW REGARDING DRIVER LICENSE SUSPENSION:

!

California state law used to allow courts to suspend a person’s driver’s license if they failed to pay off their court-ordered debt. As of June 27, 2017 through passage of AB 103, the DMV and judges can no longer suspend your driver’s license for a “failure to pay” (FTP).[2200] This new policy is not retroactive, meaning it will not apply to you if your license was suspended before June 27, 2017. Read more on PG. 53.

Helpful Hint

HELPFUL TIP:

For more information on your credit report and your credit score, see Appendix J , PG. 710, or contact the Consumer Financial Protection Bureau at (855) 411-2372, or online at: http://www.consumerfinance.gov/askcfpb/search/?selected_facets=category_exact:credit-reporting.

What is a “credit score,” and why does it matter?

A credit score is a record of how you have borrowed and repaid money in the past, and is considered a predictor of whether you are likely to repay your debts in the future. Your credit score is a number—usually between 300 and 850. The higher the number, the better your score. Your credit score is based on things like current debts you owe (including court-ordered debts), whether you've paid off previous debts in a timely manner, your income, etc.[2201] Creditors, landlords, and some employers may look at your credit score when deciding whether to give you a loan, rent an apartment to you, or hire you for a job. (Note: In California, only certain people can legally see your credit score. For more information about what employers and landlords can see about you, see the EMPLOYMENT CHAPTER (PG. 557) and HOUSING CHAPTER (PG. 332).If you want to know what your credit score is, you will probably have to pay to get it from a commercial credit reporting agency. However, you are entitled to a FREE COPY of your credit report, which will let you see the information that is used to calculate your credit score. You can request your free credit report by mail by submitting an Annual Credit Report Request Form.[2202] A sample form is included in Appendix A, PG. 684. For more information about getting your credit report, contact the Annual Credit Report Request Service at 1-877-322-8228.
  1. 2193

    Cal. Penal Code §§ 1214 (victim restitution and restitution fines enforceable and collectible as civil money judgments), 1202.42 (enforcement of victim restitution); Cal. Rev. & Tax Code § 19280 et seq. (collection of court-ordered debts by Franchise Tax Board); Cal. Code of Civ. Proc. § 680.010 et seq. (enforcement of civil judgments); see also Cal. Franchise Tax Board, Nontax Debt Collections, https://www.ftb.ca.gov/aboutFTB/ND_2011_12.pdf (rev’d Aug. 1, 2012). ↑

  2. 2194

    Cal. Penal Code § 1214; Cal. Code of Civ. Proc. § 706.020 et seq. ↑

  3. 2195

    Cal. Code of Civ. Proc. §§ 697.530, 697.620. ↑

  4. 2196

    Cal. Penal Code § 1214; Cal. Code of Civ. Proc. §§ 695.010, 697.530. ↑

  5. 2197

    Cal. Rev. & Tax. Code §§ 19280, 18670; Cal. Penal Code § 3000.05; see also Cal. Franchise Tax Board, Court–Ordered Debt (COD)—Frequently Asked Questions (Debtor), https://www.ftb.ca.gov/online/Court_Ordered_Debt/faq_debtor.shtml#q3. ↑

  6. 2198

    Cal. Pen.Code §§ 853.7-53.8. You can also be charged extra fees for failing to appear and for the cost of issuing the arrest warrant. See Cal. Pen. Code § 853.7a; Cal. Veh. Code § 40508.5. ↑

  7. 2199

    Cal. Pen. Code § 1203.4 (mandatory dismissal under statute requires payment of all debt ordered as a condition of probation); People v. Covington, 82 Cal. App. 4th 1263 (2000) (defendant who owed outstanding restitution after probation terminated was not entitled to mandatory dismissal, despite having made all required payments during probation period); People v. Chandler, 203 Cal. App. 3d 782 (1988) (defendant who failed to pay off all restitution during term of probation was not entitled to mandatory dismissal). ↑

  8. 2200

    Assembly Bill 103 (Stats. 2017, Ch. 17, Secs. 51-54), codified at Cal. Veh. Code §§ 13365, 40509 and 40509.5. ↑

  9. 2201

    Nat’l. Consumer Law Ctr., The Truth About Credit Reports & Credit Repair Companies, http://www.nclc.org/images/pdf/older_consumers/english_brochures/eng_truth_about_credit_reports.pdf. ↑

  10. 2202

    Nat’l. Consumer Law Ctr., The Truth About Credit Reports & Credit Repair Companies, http://www.nclc.org/images/pdf/older_consumers/english_brochures/eng_truth_about_credit_reports.pdf. ↑