Legal Question in Bankruptcy in Washington

Re: What you can file bankruptcy?

Hi.

You shouls LIST all of your debts, no matter what. This does not mean that the debt will be discharged (i.e., wiped out). Chapter 7 bankruptcy does not wipe out a debt for restitution ordered to be paid by a federal court under title 18 (see 11 U.S.C. 523[a][13]). Also, the Supreme Court of the United States has held that restitution obligations imposed upon criminal defendants as conditions of probation in state criminal proceedings, were not subject to discharge in Chapter 7 cases. Chapter 7 also will not discharge a debt for fines, penalties, or forfeitures payable to and for the benefit of a governmental unit see 11 U.S.C. Section 523[a][13]which your Court fines may well be interpreted to be, depending on the Court's interpretation.

Chapter 13 bankruptcy will allow you to possibly pay you Court fines at less than a 100% basis, depending on the value of your assets; but it will not wipe out "restitution ... included in a sentence on a conviction of a crime for less than a 100% payment.

Discharge of Fines & Restitution

Although you should list these debts on your bankruptcy, they cannot be discharged (eliminted) in a bankrutcy. This is provided under 11 USC section 523(a) which says:

(a) A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt--

(6) for willful and malicious injury by the debtor to another entity or to the property of another entity;

(7) to the extent such debt is for a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit, and is not compensation for actual pecuniary loss, other than a tax penalty--

Hope this helps.