Owing Victim Restitution? You Can Still Clear Your Record: What People v. Murphy Means for You
When you’re trying to rebuild your life after a criminal conviction, few legal tools are more important than Penal Code § 17(b) (reducing a felony to a misdemeanor) and Penal Code § 1203.4 (expungement). But many people—and unfortunately, some courts—believe that you cannot get these forms of relief if you still owe victim restitution.
Our experienced criminal defense attorneys at Wallin & Klarich can guide you through the legal process. Call Wallin & Klarich today toll-free at (877) 466-5245 for your free consultation with one of our criminal defense attorneys near you.
The California Court of Appeal just made it absolutely clear:
Owing restitution does NOT disqualify you.
And trial courts are NOT allowed to deny your request on this basis.
This is the central message of People v. Murphy, an important decision that protects the rights of people seeking a second chance.
Background of People v. Murphy
Hayley Mackenzie Murphy pled no contest to a felony DUI causing injury and admitted a prior DUI. She agreed to serve jail time, probation, an 18-month alcohol program, and pay $78,558.62 in victim restitution plus 10% yearly interest.
After completing probation, she filed for:
- Expungement under Penal Code § 1203.4, and
- Reduction of her felony to a misdemeanor under Penal Code § 17(b).
The trial court denied both requests—primarily because she hadn’t paid all of the restitution yet.
The Court of Appeal reversed the decision, holding that the trial court acted outside its authority by relying on restitution nonpayment.
What is Penal Code § 1203.4 (Expungement)?
Penal Code § 1203.4 allows many people who successfully complete probation to withdraw their plea, have their conviction dismissed, and truthfully say they have not been convicted of that offense in most situations—such as employment applications.
Importantly, § 1203.4 explicitly states:
“An unpaid order of restitution or restitution fine shall not be grounds for denial of the petition for relief.”
That means:
Even if you still owe restitution, the judge cannot use that as a reason to deny your expungement.
What is Penal Code § 17(b) (Felony Reduction)?
Some felonies in California are “wobblers”—offenses that can be punished either as a felony or a misdemeanor. Under § 17(b), after you complete probation, a court has discretion to reduce the felony to a misdemeanor.
The statute also makes this crystal clear:
“An unfulfilled order of restitution or a restitution fine shall not be grounds for denial” of a § 17(b) request.
So once again:
Owing money to the victim does NOT block you from getting your felony reduced.
People v. Murphy: A Clear Message to Courts Statewide
The Court of Appeal held that the statutes’ language is unambiguous—judges are prohibited from using unpaid restitution to deny these forms of post-conviction relief.
In Murphy’s case, the trial court repeatedly relied on the unpaid restitution as a reason for denial. Because the law forbids this, the Court of Appeal reversed and remanded.
The takeaway:
If you otherwise qualify for expungement or a felony reduction, you are entitled to have the court evaluate your request without punishing you for outstanding restitution balances.
Why This Matters for You
Many people completing probation are still making payments on restitution. This can be for reasons totally outside their control:
- Medical bills
- Loss of employment
- Child care obligations
- Financial hardship
- The sheer size of the restitution order (as in Murphy)
The Court of Appeal recognized that linking these post-conviction benefits to full repayment creates an unfair barrier—and is directly against the Legislature’s intent.
Call Wallin & Klarich Today
If you or a loved one is seeking an expungement under Penal Code § 1203.4 or a felony reduction under Penal Code § 17(b), you do not have to navigate this process alone. The Court of Appeal’s decision in People v. Murphy makes clear that outstanding restitution cannot be used to deny your request—but many trial courts still get this wrong.
Our experienced criminal defense attorneys at Wallin & Klarich can:
- Evaluate your eligibility for relief
- Prepare a strong motion supported by the updated law
- Present compelling evidence of rehabilitation
- Fight to ensure the court follows Murphy and applies the law correctly
- Help you move forward with a clean record and restored opportunities
At Wallin & Klarich, we have offices all over Southern California: Irvine, Pasadena, Riverside, San Bernardino, San Diego, Torrance, and Anaheim. Additionally, our law firm can handle many types of cases statewide.
Discover how our team can assist you. Contact us today, toll-free at (877) 466-5245 for a free consultation with a skilled criminal defense attorney near you.
