What Is CAFRA? Civil Asset Forfeiture Reform Act Deadlines and Defenses

The Civil Asset Forfeiture Reform Act, enacted in 2000 and commonly called CAFRA, is the federal law that rewrote the rules for how the government can seize and keep private property tied to alleged criminal activity. It shifted the burden of proof onto the government, eliminated the cost bond that once blocked owners from contesting a seizure, created a statutory innocent owner defense, and imposed firm deadlines that agencies must meet or risk losing the forfeiture entirely.¹

What CAFRA Changed

Federal civil forfeiture targets property rather than people. The government files a legal action against the asset itself, which is why forfeiture cases carry names like “United States v. $38,000 in U.S. Currency.” That structure means a car, a bank account, or a house can be pursued even if the owner is never charged with a crime.

Before CAFRA, the deck was heavily tilted toward the government. The owner carried the burden of proving the asset was “innocent.” Anyone who wanted to contest a seizure first had to post a bond worth 10 percent of the property’s value or $5,000, whichever was lower. For many people, that bond alone made challenging a forfeiture financially impossible.

CAFRA made three foundational changes. It shifted the burden of proof to the government, which must now show by a preponderance of the evidence that the property is connected to a crime. It eliminated the cost bond, so anyone can file a claim without paying upfront.² And it codified an innocent owner defense giving property owners a clear statutory path to recover their assets.

What Property the Government Can Seize

Two main statutes define the reach of federal civil forfeiture. Under 18 U.S.C. § 981, property connected to money laundering, fraud, counterfeiting, terrorism financing, and dozens of other federal offenses is subject to forfeiture — real estate used in an illegal operation, bank accounts holding fraud proceeds, vehicles involved in smuggling.³ For drug offenses, 21 U.S.C. § 881 covers controlled substances themselves, raw materials used to manufacture them, vehicles used to transport them, and money exchanged in drug transactions.⁴

Proximity to suspected criminal activity is not enough. When the government’s theory is that property was used to commit or help carry out a crime, prosecutors must establish a substantial connection between the asset and the offense.² Cash found alongside drugs in a car with drug residue would likely clear that bar. A family savings account with no traceable link to illegal activity would not.

Notice Deadlines the Government Must Meet

Once property is seized, the agency must send written notice to anyone with an interest in it. The statute requires that notice go out “as soon as practicable,” and in no case more than 60 days after the seizure.² The notice must be sent in a manner reasonably calculated to reach the owner. If the government misses this 60-day window without an authorized extension, it may be forced to return the property.

Extensions are permitted when sending notice would compromise an active investigation, endanger someone’s life, or tip off a flight risk. Those delays require approval from a supervisory official and are typically granted in short increments. The notice itself identifies the seized property, the legal authority for the seizure, and the deadline for filing a claim.

Filing a Claim to Contest the Forfeiture

A claim is the document that tells the government you intend to fight the forfeiture. The deadline is printed in the notice letter, and the statute requires that deadline to be at least 35 days from the date the notice was mailed.² Missing it is the single most common way people lose property they could have recovered. A claim sent by U.S. mail or commercial delivery service is considered filed on the date the agency receives it.⁵

The claim does not need to follow a particular form, but it must include three things: a description of the specific property being claimed, a statement of your ownership or other interest in it, and a sworn declaration under penalty of perjury that your statements are true.² Filing a false claim can lead to criminal prosecution.⁵ Standard forms are available from the seizing agency and through forfeiture.gov. CAFRA eliminated any requirement to post a bond when filing.

Supporting documents make a difference. Purchase receipts, vehicle titles, bank statements showing the source of funds, and similar records help establish that you legitimately own or have an interest in the property. Once the agency receives a valid claim, the administrative phase ends and the government has 90 days to file a civil forfeiture complaint in federal district court. If it fails to file within that window, it must return the property.²

What the Government Now Has to Prove

In a judicial forfeiture proceeding, the government must prove by a preponderance of the evidence that the property is subject to forfeiture. Preponderance means more likely than not. It is a lower bar than the “beyond a reasonable doubt” standard in criminal cases, but it still requires actual evidence connecting the property to the alleged offense.²

When the theory is that property was used to commit or help carry out a crime, the standard tightens: prosecutors must show a substantial connection between the property and the offense.² Before CAFRA, the government only had to show probable cause, after which the owner had to disprove the connection. The move to preponderance of the evidence was one of the law’s most significant reforms.

The Innocent Owner Defense

Even if the government proves the property is connected to a crime, an owner who had nothing to do with the illegal activity can still recover it. Under 18 U.S.C. § 983(d), the claimant must prove by a preponderance of the evidence that they qualify as an innocent owner. The defense works differently depending on when you acquired the property.⁶

If you owned the property when the illegal conduct occurred, you qualify as an innocent owner if you either did not know about the conduct, or, upon learning about it, took all reasonable steps to stop it. Reasonable steps might include notifying law enforcement or revoking permission for the person engaged in the illegal activity to use the property. The law does not require you to take any action that would put someone in physical danger.⁶

If you acquired the property after the illegal conduct took place, you qualify if you were a good-faith buyer or seller who paid fair value and had no reason to believe the property was subject to forfeiture. The statute also protects people who received property through marriage, divorce, inheritance, or probate, even without paying value in exchange, as long as the property is their primary residence and is not traceable to criminal proceeds.⁶

Getting Property Back While the Case Is Pending

Forfeiture cases can drag on. If the seizure is causing serious harm in the meantime, you can ask the court for immediate release of the property while the case continues. To win a hardship release, you must satisfy all of the following:⁶

A right to possess the property, not just a financial stake in it.
Ties to the community strong enough to assure the court the property will be available for trial.
Substantial hardship from the government’s continued possession, such as preventing you from working, shutting down your business, or leaving you homeless.
Hardship that outweighs the risk the property will be hidden, damaged, or transferred if returned to you.

Some property is flatly ineligible. Currency and other monetary instruments cannot be released unless they represent the assets of a legitimate business. Property held as evidence, items specially designed for illegal use, and property likely to be used for further crime are also excluded.⁶ In practice, hardship release is most commonly used for vehicles and real property, not cash.

Attorney Fees, Appointed Counsel, and Interest

CAFRA addressed the cost problem in two ways. First, it created a limited right to appointed counsel. If you already have a court-appointed attorney in a related criminal case and cannot pay for separate representation in the forfeiture proceeding, the court may authorize that same attorney to represent you on the forfeiture claim. The court considers whether your claim appears to be made in good faith and whether you have standing.²

When the seized property is real estate being used as your primary residence, the protection is stronger: the court must ensure you are represented by a Legal Services Corporation attorney at your request, and the government pays reasonable attorney fees for that representation regardless of the outcome.² For other types of property, there is no guaranteed right to free counsel.

Second, if you substantially prevail in a judicial forfeiture proceeding, the government is liable for your reasonable attorney fees and litigation costs under 28 U.S.C. § 2465, along with post-judgment interest. When the seized property is cash or negotiable instruments, the government also owes interest. If the money was deposited into an interest-bearing account, the government must return whatever interest it actually earned. If the money sat idle, the government owes an imputed amount based on the 30-day Treasury Bill rate, starting 15 days after the seizure. Time periods when the currency was reasonably being used as evidence are excluded from the calculation.⁷

Two limits apply. If you are convicted of a crime for which the property was subject to forfeiture, you cannot recover attorney fees or interest even if the civil case itself went your way.⁷ Fee recovery also does not apply to administrative forfeitures, only to judicial proceedings. That is another reason filing a proper claim, which forces the case into court, matters so much.

How Long the Government Has to Act

The government cannot wait indefinitely. Under 19 U.S.C. § 1621, a forfeiture action must be started within five years of when the alleged offense was discovered, or within two years of when the property’s involvement was discovered, whichever comes later.⁸ Time the person subject to forfeiture spends outside the United States, and any period when the property was concealed, does not count toward the five-year clock.

1
U.S. Government Publishing Office. Public Law 106-185 – Civil Asset Forfeiture Reform Act of 2000
2
Office of the Law Revision Counsel. 18 USC 983 – General Rules for Civil Forfeiture Proceedings
3
Office of the Law Revision Counsel. 18 US Code 981 – Civil Forfeiture
4
Office of the Law Revision Counsel. 21 US Code 881 – Forfeitures
5
Forfeiture.gov. Claims
6
Office of the Law Revision Counsel. 18 US Code 983 – General Rules for Civil Forfeiture Proceedings
7
Office of the Law Revision Counsel. 28 USC 2465 – Return of Property to Claimant; Liability for Wrongful Seizure; Attorney Fees, Costs, and Interest
8
Office of the Law Revision Counsel. 19 US Code 1621 – Limitation of Actions