Can I include restitution payments ina Chapter 13 bankruptcy?

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Can I include restitution payments ina Chapter 13 bankruptcy?

I was charged but not convicted of arson. I am ordered to pay back $15,000 to the insurance company. I make my monthly payments to the D.A.’s office, who then sends it to the insurance company. I do not owe the D.A. anything. Can the insurance company be included in my list of debtors on my Chapter13 bankruptcy?

Asked on October 11, 2010 under Bankruptcy Law, Mississippi

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

What debts are and are not dischargable in bankruptcy varies from state to state.  But generally criminal fines and restitution payments are not dischargable in a Chapter 13 bankruptcy.  I believe that it would be against public policy to allow a party to commit a crime and be able to bargain the fine or sentence down by agreeing to pay restitution and then be able to reneg on the agreement basically by discharging the debt. The fact that it is an insurance company should have no effect on the matter. Then more and more people would do such a thing.  But I would double check with an attorney in your area to be sure as stranger things have happened. Good luck.  


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