How do you collect unpaid debt from the federal government?

Question

There are currently concerns that the federal government might just not make some payments it owes to people, either because it doesn't feel like it or due to some kind of massive computer failure.

I might be owed money from the federal government for a couple reasons: either they contracted to pay me (maybe I sold them some widgets, or reported hours on a government timesheet), or I'm a beneficiary of a federal entitlement program (maybe I receive social security, and by law should get a certain payment), or they have incurred some other legal obligation (maybe they owe me damages from a civil-rights lawsuit I won).

If the money is not forthcoming, how would collecting the resulting debt from the federal government differ from collecting from a private entity?

Usually one would have the option of taking the debtor to court, getting court orders to compel banks to transfer assets, and so on. How does that change when the debtor is a sovereign entity? Is the federal government going to be compelled to fill out an asset disclosure listing all the gold in Fort Knox? Is the federal government immune to debt collection suits and you're going to get told to pound federally-owned sand?

Does the nature of the original obligation (money owed under a contract vs. money owed under a law or entitlement) change how collections might work?

Answer 1

First, you sue the government in the court of claims.

Then, when you prevail, Congress appropriates assets to pay the judgment.

Generally, you can't seize federal assets to enforce that judgment. But the federal government can be compelled through the courts to pay your debt in money, although the harder aspects of how that is enforced are somewhat fuzzy, because the federal government, over the last 248 years, has always done so.