Legal Question in Bankruptcy in Maryland
Restitution Order
Would declaring Chapter 7 bankruptcy protect a person who faces a possible restitution order? A convicted burglar is now out on parole and has a restitution hearing. He may be liable for up to $30,000. Would bankruptcy protect him for the order?
Could you point me to the section of law that deals with this?
1 Answer from Attorneys
Re: Restitution Order
No. Restitution is non-dischargeable, as are debts for larceny and willful and malicious injury. See Section 523 of the bankruptcy code. For the for debt for larceny or willful and malicious injury to be non-dischargeable, the creditor must file an adversary proceeding in the bankruptcy court seeking such a determination within 60 days of the first scheduled date for the meeting of creditors. The State is not required to do this to enforce the restitution order, but enforcement of any restitution order is at the mercy of the state and the criminal trial/sentencing judge.
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