Can a restitution order be discharged in bankruptcy?
Question Details:
Approximately 10 years ago I was ordered to pay restitution to a former employer. I am being garnished now. Can I file bankruptcy on this debt?
You need to consult with a bankruptcy attorney for a definitive answer, but generally speaking, only a few debts are usually not dischargable in bankruptcy. The most common ones are many tax debts; debts resulting from judgments for DUI/DWI; student loans; and alimony and child support. Most other debts, including from lawsuits other than those described above, are dischargable. So it is worthwhile consulting with a bankruptcy attorney, who could evaluate all the specifics of your situation; from what you write, your debt would not seem to fall into the categories of commonly nondischargable debts. The attorney can also advise you of the costs, pros, and cons of bankruptcy, so you can see if overall, filing bankruptcy is the right choice. Declaring bankruptcy is such a large step, with so many ramificaitons, that you don't want to do it unless you are 100% certain it is to your benefit.