Restitution Payments

DEFINITION of 'Restitution Payments'

The payment of punitive damages that are owed as a result of wrongdoing or neglect. Restitution payments are an attempt to restore a person to a previous financial condition that should have persisted save for the improper actions of another person or entity. Restitution payments are usually paid according to a schedule dictated by the court, but often will not begin until after the defendant/payor has been released from prison, if jail time is also served.

BREAKING DOWN 'Restitution Payments'

Some types of restitution payments are controversial, such as payments to descendants of black slaves or Holocaust survivors. Some restitution payments are tax free, but payors cannot deduct restitution payments by donating them to a qualified charity.

RELATED TERMS
  1. Holocaust Restitution Payments

    Money paid by the governments of Germany and Austria to partly ...
  2. Injunction

    A court order that prevents somebody from doing something specific. ...
  3. Payment Option ARM Minimum Payment

    An option to make minimum payments on an payment option ARM, ...
  4. Punitive Damages

    Legal recompense that is levied as punishment for a wrong or ...
  5. Graduated Payment Mortgage

    A type of fixed-rate mortgage in which the payment increases ...
  6. Down Payment

    A type of payment made in cash during the onset of the purchase ...
Related Articles
  1. Personal Finance

    When is a Down Payment Used?

    A down payment is an initial cash payment on an expensive good.
  2. Markets

    Is the Payment Processing Industry Evolving? (PYPL, TGT)

    Learn about the many changes in commerce and payment systems that are happening in the rapidly evolving payment processing industry.
  3. Personal Finance

    Mortgage Basics: The Amortization Schedule

    By Lisa SmithThe amortization schedule for a residential mortgage is a table that provides a breakdown of the schedule of payments from the loan's first required payment to the loan's final payment. ...
  4. Investing

    Understanding the Mortgage Payment Structure

    We explain the calculation and payment process as well as the amortization schedule of home loans.
  5. Markets

    How Digital Payments Will Change Commerce in 2016

    The way we transfer and spend money is constantly evolving, and 2016 is poised to expand digital payments like we've never seen before.
  6. Personal Finance

    Student Loans: Paying Off Your Debt Faster

    Paying off your student loans won't happen overnight, but you can shorten your repayment period by a few months or even a year or two. How? By using one or a mixture of the methods outlined here. ...
  7. Personal Finance

    The Fundamentals Of Spousal Support Taxation

    The spousal support that is paid out after a divorce can have varying tax implications. We'll look at what you need to know to settle on the best tax solution.
  8. Retirement

    What is a Lump-Sum Payment?

    A lump-sum payment is a one-time payment for the total or partial value of an asset.
  9. Personal Finance

    Understanding The Mortgage Payment Structure

    While a mortgage’s size and term set the baseline, the interest, taxes and insurance all influence the amount of the monthly payment.
  10. Personal Finance

    Is Making Biweekly Mortgage Payments A Good Idea?

    Some people believe making mortgage payments every two weeks, as opposed to once a month, can chop years off of a home loan. But is it really a good idea?
RELATED FAQS
  1. If an early distribution has been ordered by the courts to pay back restitution, ...

    I went through the Federal Courts. I've spoken to my tax preparer, went to the local IRS office and no one has an answer ... Read Answer >>
  2. Is a deficit in the balance of payments a bad thing?

    Discover how it might be possible to run a balance of payments deficit, what that means in terms of international trade and ... Read Answer >>
  3. What is the difference between a bond's yield rate and its coupon rate?

    Learn why bond coupon payments, which are a series of fixed payments made to a bondholder throughout the life of the bond, ... Read Answer >>
  4. What's the difference between cash-on-delivery differ and delivery against payment?

    Find out more about cash on delivery and delivery versus payment transactions and the difference between these two types ... Read Answer >>
  5. Are student loans amortized?

    Student loans typically get paid back over time on a fixed payment, or amortized, schedule. Read Answer >>
  6. What are the differences between installment sales and credit sales?

    Determine the differences between credit sales and installment sales, which businesses often offer their customers for deferred ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center