Summary: S.84 — 101st Congress (1989-1990)All Information (Except Text)

Bill summaries are authored by CRS.

Shown Here:
Passed House amended (09/27/1990)

Federal Debt Collection Procedures Act of 1990 - Title I: Debt Collection Procedures - Establishes a uniform, nationwide system of civil procedures to facilitate the collection of debts owed to the United States. Allows U.S. Attorneys to reach all pending claims for debts owed to the United States, as well as any judgment on a debt going back ten years.

Establishes special rules with respect to the sale of perishable property during the pendency of any proceeding to recover debts owed to the United States.

Allows U.S. district courts to assign their duties in proceedings under this Act to U.S. magistrates.

Grants the court power to modify the use of any enforcement procedure.

Lists the types of property exempt from the enforcement procedures of this Act, including the debtor's: (1) interest in real property used as a primary residence; (2) interest in one motor vehicle; (3) interest in certain life insurance policies; and (4) right to receive social security, veterans' disability, or unemployment benefits. Places certain limitations on exempt property.

Allows the United States to name as an additional defendant any person believed to owe money to the debtor arising out of the transaction or occurrence giving rise to a debt.

Permits the United States to seek any prejudgment remedy. Sets forth procedures to be followed by the United States under such circumstances. Establishes additional procedural requirements with respect to the attachment of property. Prohibits a U.S. marshal from selling property unless ordered by the court.

Allows a court to appoint a receiver for property in which the debtor has a substantial nonexempt interest only if the United States shows reasonable cause to believe that there is a substantial danger that the property will be removed from the jurisdiction of the court, lost, materially injured or damaged, or mismanaged. Sets forth the powers of the receiver.

States that a judgment in a civil action creates a lien upon all the real property of a judgment debtor. Makes a debtor who is the subject of such a lien ineligible for Federal grants and loans. Allows the district court to order the United States to sell any real property subject to such a lien. States that such liens are effective for a period of 20 years and renewable for a longer period.

Sets forth procedures with respect to: (1) the issuance of notices; (2) the sale of real and personal property subject to a levy pursuant to a writ of execution; (3) installment payments; and (4) garnishment.

Provides remedies for the fraudulent transfer of an asset by a debtor.

Title II: Amendments to Other Provisions of Law - Makes technical and conforming amendments to various provisions of Federal law.

Allows the court to order that criminal appearance bail bonds be applied to the payment of any assessment, fine, restitution, or penalty imposed upon the defendant.

Authorizes executive and legislative agency heads to: (1) sell debts owed to the United States to any private debt collection agency; (2) hire private debt collection agencies and law firms to collect such debts; and (3) assign attorneys in such agency to participate in the collection of such debts.

Title III: Miscellaneous - Sets forth the effective date of this Act.