Wednesday, December 18, 2013

Bankruptcy & Litigation Series: #10 Criminal Cases

Over the course of our bankruptcy & litigation series we have explored many ways that a bankruptcy can affect the course or outcome of a civil case.  Criminal cases, however, are not typically affected by bankruptcy.

The Automatic Stay will not stay the imposition of a criminal sentence or criminal penalty.

Criminal penalties are non-dischargable to the extent such debt is for a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit, and is not compensation for actual pecuniary loss.

Additionally, debts arising out of frivolous claims filed by prisoners are not dischargable.

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