Friday, August 12, 2005

bankruptcy - criminal restitution order not dischargeable

In re Thompson - 3d Cir. - August  11, 2005

Held, state court criminal restitution order is not dischargeable in bankruptcy.  The court said that sec. 523 (a)(7) "preserves from discharge any condition that a state criminal court imposes as part of a criminal sentence." (emphasis in original).  The court said that this was a matter of first impression in the courts of appeals.  David Scholl was the debtor's attorney.

Donald Marritz, staff attorney
MidPenn Legal Services - Gettysburg