I was just notified by a Bankruptcy Court that an individual who has been ordered to pay restitution to me in both a CIVIL and CRIMINAL lawsuit has applied for a Chapter 7 Bankruptcy. She is presently paying on the criminal order so that she won't be returned to prison.
Is it possible to have either of these type debts discharged by filing Chapter 7?
Thank you, DJ

What kind of debt are they paying off to you? At least give a general answer.

SSchultz0956:

The debts owed to me are as a result of a criminal conviction of theft by deception (tricking and then threatening my aged Mother out of 70 + thousand dollars). She served 10 years in prison and is now out on parole and is paying on the criminal restitution and I have just had the civil conviction restitution order (for the additional amount) revived for another 10 years.
Both restitution amounts result from her crime and 2 court cases.
Can either of these be "discharged" with a chapter 7 bankruptcy?

That is a good question. I suspect that the answer is yes and no. It
Is not one of the traditional non-dischargeable debts, such as student
Loans, back taxes, alimony payments, child support, etc. however, my
Guess would be that the court is not obligated to honor the bankruptcy
As far as being cleared for purposes of satisfying the sentence. In
Other words, the courts would probably be enjoined from physical
Collection by the automatic stay provisions of the bankruptcy code, but it would still show up on the debtors criminal court record as an unsatisfied
Obligation, and subject the defendant to probation violation, further
Punishment, etc.

SS
Thank you for your input. Seems that you agree with me that the parolee is obligated to pay or "pay". The Criminal Court has made it a provision in her parole that she must work and pay restitution until she has completed payment of the 37,000 + dollars. Even if the bankruptcy court relieves her of the Civil debt, she would still be duty bound by the Criminal Court to pay as directed or return to prison to complete her sentence which is Aug 2014.

I am having my attorney send copies of the Court papers to the Bankruptcy Court so that they might understand just what the debts are about.

I believe her date is mid Nov. I shall try to reconnect with you to let you know the outcome.

I am in the State of Alabama. Are you of the legal profession?
DJ

No, I'm not in the legal profession YET. I'm still in college, but ill be specifically getting into tax law. Yeah, let me know how it goes.

Restitution is not dischargeable .

Thank you! I hope you are correct. I feel they shouldn't be but so many of our laws seem to "protect" the wrong people today.

Judgments such as this are not dischargable.

The fines, and payment to the victims of crimes are not dischargable under bankruptcy laws.

The payments are required under the terms of criminal courts and failure to pay these can result in further criminal action.

Quote:

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Originally Posted by SSchultz0956

That is a good question. I suspect that the answer is yes and no. It
is not one of the traditional non-dischargeable debts, such as student
loans, back taxes, alimony payments, child support, etc., however, my
guess would be that the court is not obligated to honor the bankruptcy
as far as being cleared for purposes of satisfying the sentence. In
other words, the courts would probably be enjoined from physical
collection by the automatic stay provisions of the bankruptcy code, but it would still show up on the debtors criminal court record as an unsatisfied
obligation, and subject the defendant to probation violation, further
punishment, etc.

---

What about Chapter 13 Bankruptcy? If I'm not mistaken there is a case cited as Pennsyvaina v. Davenport, in which the court stated that chapter 13 was dischargable! Please fill me in on this issue if possible.

Thanks

Sid

No. The Supreme Court, Justice Powell, held that restitution obligations, imposed upon criminal defendant as conditions of her probation in state criminal proceedings, were not subject to discharge in Chapter 7 proceedings. Kelly v. Robinson, 479 U.S. 36, 107 S.Ct. 353 (1986)

http://www.abajournal.com/news/how_a_bankruptcy_court_overrode_restitution_in_a_c riminal_case/

I found this with the search for you question, you may want to read it, but you might not be happy with the outcome

Can you file chapter 7 on probation?