Legal Question in Credit and Debt Law in Indiana
Restitution
I have severed my sentence and would like to know if you can file bankrupcy on restitution. I have served almost the intire sentence I started out with.
I just recently modified to a work relesase facility.
2 Answers from Attorneys
Re: Restitution
The answer is "it depends," because most types of criminal restitution do NOT go away in a bankruptcy. Depends what it was for and the underlying nature of the crime and if it really was restitution, fine, penalty, etc. Seek a good bankruptcy attorney for an opinion.
Re: Restitution
http://www.canb.uscourts.gov/canb/Documents.nsf/0/a0ec848f982a0e19882568ac0064b18d?OpenDocument
The restitution ordered in a criminal court judgment is probably not dischargeable. So, that debt will not be discharged by a chapter 7 proceeding. The above link describes the way a typical bankruptcy judge would consider the matter. However, I think you can pay the debt as a priority claim in a Chapter 13 proceeding, meaning you would be entitled to stretch payments out over three to five years. For now your best bet may be to work out a payment schedule with your parole officer or the court probation department, whichever assumes responsibility to enforce your performance. And you can always ask the criminal court to modify its judgment [which you may know is not often granted, but it's worth a shot.] Good luck.