What is the purpose of forfeiture? Property is said to be forfeited when it is lost or misused. The loss may have been caused by a criminal act, but the loss itself forfeits the property. Forfeiture involves civil and criminal actions. Civil forfeiture occurs when a civil action has been brought against the defendant to recover civil penalties or awards for civil wrongs against the defendant.
Civil actions for forfeiture occur in civil actions such as judgments and settlements. In criminal cases, forfeiture occurs through confiscation. The right to property may be restrained by the law. Seizures can occur for crimes like drug possession, DUI, robbery, sex offenses, and many other crimes.
What is the right of property seizure without compensation? The Fifth Amendment protects the rights of individuals against "unjust seizure." This means that when a person is seized, their property cannot be taken without just compensation. Even if the owner of the property was aware of the illegal activity, or had done something to prevent an illegal seizure, his or her right to that property can still be lost.
What is the purpose of civil forfeiture? The right of seizure can often be lost through criminal activity, even if the suspect was not acting illegally at the time of his or her seizure. The purpose of civil forfeiture is to ensure that the property seized remains the property of the state. The forfeited property belongs to the state because it was acquired through the exercise of a state's criminal laws and is subject to state taxation.
What is the purpose of making property assets accessible through bankruptcy in a criminal case? Bankruptcy destroys the assets of the suspect and renders the assets subject to the control of an appointed trustee. The trustee is authorized to seize the property and sell it to satisfy the debt of the defendant.
What is the purpose of forfeiture in civil cases? When a person is convicted of a crime or enters a plea of guilty, assets are usually frozen by the court in an attempt to make them less accessible to the property of the accused. If the owner of the property does not pay the money owed, then the court orders the forfeiture of the property. Once the property has been forfeited, the owner loses all rights to that property. However, property that is used in criminal proceedings, such as an instrument of crime, remains in the custody of the police department and under the control of the state.
What is the effect of forfeiture on an individual's wages and assets? In most states, the forfeiture action results in immediate loss of income and usually also results in the deduction of various deductions, such as state and local taxes. An exception is made in some tax states, such as those in which the property is considered an exempt "public use" property, and therefore, is not subject to forfeiture. In addition, if the criminal charges are dropped but the charges against the individual are not dismissed, then the individual may be able to retain some, if not all, of the funds underlying the criminal charges.
What is the effect of forfeiture on the state and local tax burden? State and local tax revenue loss resulting from forfeitures can exceed the revenues lost in the criminal fines or penalties, if the property seized is assessed at the amount the owner actually paid. This means that, in the vast majority of cases, civil and criminal forfeitures will wind up being completely offset by the loss of revenues. Local and state tax revenues are particularly vulnerable to huge losses in the wake of the current economic situation.
