Court-ordered Restitution
Going through their credit report allows bankruptcy debtors to determine to whom they owe money to. However, a party who is ordered to be paid restitution as a result of a criminal court action might not appear on the credit report. This restitution might be a wage deduction listed on the Schedule J of monthly expenses, but it would also need to appear listed as an unsecured priority creditor on Schedule E. Unsecured priority claims are not dischargeable and would include domestic support obligations; wages, salaries, and commissions; claims for death or personal injury while debtor was intoxicated as well as total court-ordered restitution amounts. Such restitution would be classified as taxes, customs duties, and penalties owing to federal, state, and local governmental units as set forth in 11 U.S.C. s. 507(a)(8), even if actually payable to a private entity.
Disclaimer: This does not constitute legal advice. Please contact a bankruptcy attorney in your jurisdiction for question specific to your situation.
