QUESTION
Can someone file for bankruptcy to avoid payment of penalties imposed by the court?
Asked on Oct 25th, 2011 on Bankruptcy - Minnesota
More details to this question:
My friend has been beaten up about 6 times, had his windows broken 8 times, has had sugar put into the gas tank for his 3 cars. He has been awarded $ 45,000 in damages. The person who did this has been found guilty. This person has lots of money and the lawyers have copies of his assets which he has hidden. Can he file for bankruptcy to avoid paying the penalties by the court?
15 ANSWERS
judith runyon
It depends upon what the court order says.
Answered on Jul 03rd, 2013 at 3:15 AM
Family Law Attorney serving McDonough, GA
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South Atlanta Family Law
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He may not be able to discharge this debt because it is considered restitution for a crime or intentional tort. If he includes it in his petition, your friend will need to file something with the bankruptcy court asking to make the debt non-dischargeable.
Answered on Nov 07th, 2011 at 9:23 AM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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Depends on the charges (criminal or civil), and the extent of the "bad person's" assets. Hard question to answer without substantially more information.
Answered on Nov 02nd, 2011 at 11:36 AM
Bankruptcy Attorney serving Corona, CA
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Saunders Law Group, Ltd
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If the court ordered it as 'restitution' he cannot discharge it with bankruptcy.
Answered on Oct 28th, 2011 at 5:47 PM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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The defendant should not be able to discharge of this debt if you can show it was a "willful and malicious injury" but if he files you must object to the discharge of the debt within a certain period of time.
Answered on Oct 27th, 2011 at 2:02 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Generally damages arising from criminal restitution nor malicious injury are not discharged in bankruptcy. That said they may be discharged unless you file a timely adversary complaint with the court to have the court find them non-dischargeable.
Answered on Oct 27th, 2011 at 1:57 PM
Family Law Attorney serving Bellevue, WA
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Dearbonn Law Offices PLLC
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No. Court penalties are not dischargeable. You must pay them.
Answered on Oct 27th, 2011 at 2:30 AM
Glen Edward Ashman
As a general rule, willful torts are non-dischargeable.
Answered on Oct 27th, 2011 at 1:34 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Sanctions and restitutions are non-dischargeable. If the judgment amount is not punitive (a sanction) or a restitution, then it is dischargeable. You will have to read the judge's order to determine this.
Answered on Oct 26th, 2011 at 7:43 PM
The perpetrator here can file for bankruptcy protection, or at least try. An award for the types of damages you list could be discharged in the bankruptcy and there would be no recourse for your friend. Whether he qualifies for bankruptcy will depend on his debt to asset ratio. If he does file, your friend will be listed as a creditor and will have the right to appear at the 341 creditor's meeting to question this person about his assets. Your friend can file an Objection to Discharge. Your friend can investigate this person's assets and notify the bankruptcy trustee of any assets found which are not listed on the bankruptcy petition. The failure to list assets could be found to be a fraud upon the court leading to a dismissal of the bankruptcy (it gets thrown out) and possible criminal charges. Your friend should hire a bankruptcy litigation attorney to assist in this matter. Your friend should also push the attorney who helped get the $45,000 award to collect on it. There are many ways to collect from a judgment debtor. In this case the more aggressive methods may be best.
Answered on Oct 26th, 2011 at 7:02 PM
Chapter 7 Bankruptcy Attorney serving Huntington Beach, CA
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Law Offices of Christine A. Wilton
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This "guilty" person can try to hide assets and file for bankruptcy, but your job will be to tattle on him to the trustee. I strongly encourage you to consult with a creditors counsel to protect your rights to collect on this judgment through his bankruptcy case. You may need to litigate and expose the fraud. Depending upon which chapter this person filed under will also make a difference in how you proceed.
Answered on Oct 26th, 2011 at 5:55 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Fines and penalties and the like are not dischargeable in bankruptcy.
Answered on Oct 26th, 2011 at 5:34 PM
Consumer Bankruptcy Attorney serving Worcester, MA
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Law Offices of James Wingfield
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Criminal Restitution payments are NOT dischargeable in bankruptcy.
Answered on Oct 26th, 2011 at 5:20 PM
Court fines are not dischargeable in bankruptcy. Neither are damages done to another intentionally. If he files bankruptcy and fails to disclose his assets, he will be seeing federal prison from the inside.
Answered on Oct 26th, 2011 at 5:14 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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Criminal restitution cannot be discharged in bankruptcy.
Answered on Oct 26th, 2011 at 5:10 PM