Restitution ordered in juvenile delinquency proceedings is dischargeable in chapter 13 bankruptcy, the U.S. Court of Appeals for the Tenth Circuit ruled in the case of In Re Sweeney, No. 06-1224, July 11, 2007.
Shea Thomas Sweeney was adjudicated a juvenile delinquent at age 12 for arson. As part of his sentence, he was ordered to pay $89,202.10 in restitution.
Eleven years later, Sweeney filed for Chapter 13 bankruptcy. He listed $85,000 in unpaid restitution. The State of Colorado challenged his discharge.
Generally, adults cannot discharge criminal restitution in chapter 13 bankruptcy because restitution included in a sentence on the debtor’s conviction of a crime is automatically excepted from discharge under 11 U.S.C. section 1328(a)(3).
The State of Colorado argued that being found guilty under juvenile delinquency laws is the same as being convicted of a crime. The bankruptcy court agreed and denied the discharge of the restitution. Two levels of appeals court said no, juvenile delinquency is an adjudication of status, not of guilt, and not considered a conviction of a crime under 1328(a)(3).
Latest posts by Jill Michaux, Esq. (see all)
- Does Chapter 13 Mean Paying All Creditors Back? It Could Be Zero to Unsecured Claims - June 18, 2013
- Random Bankruptcy Audits Stopped - April 24, 2013
- What’s Baseball Got to Do with Bankruptcy? - March 31, 2013
- Bankruptcy Code Dollar Figures Raised 6.3% for Inflation - February 21, 2013
- Chapter 13 Bankruptcy Plan Form Feedback Sought - January 2, 2013
Last modified: January 23, 2010