Central District Consumer Bankruptcy Attorney's Association

Not sure how much this helps you but civil restitution is not per se
nondischargeable like its criminal counterpart. See 76 B.R. 764.
To be nondischargeable, the debt must (1) arise as a punishment or sanction
for some type of wrongdoing by the debtor and not merely be an enhanced
monetary remedy for what is essentially a breach of contract; (2) not be
compensation for actual pecuniary loss; (3) be payable to a governmental
unit; and (4) be for the benefit of a governmental unit.
Sincerely,
Michael Avanesian
On Wed, Nov 19, 2014 at 10:38 PM, jesseelaw@aol.com [cdcbaa] wrote:
>
>
> I am trying to find case law as to whether civil restitution under CA B&P
> Code 17203 constitutes a fine, penalty or forfeiture under 11 U.S.C.
> 523(a)(7). The closest I found was *In Re Findley* (9th Circuit 2010)
> 593 F3d 1048 that found State Bar costs levied against a disciplined
> attorney to be a penalty excepted from discharge under 523(a)(7) because
> CA's legislature amended B&P Code 6086.10 and added subsection (e). That
> subsection states:
>
>
> "In addition to other monetary sanctions as may be ordered by the
> Supreme Court pursuant to Section 6086.13, costs imposed pursuant to this
> section are penalties, payable to and for the benefit of the State Bar of
> California, a public corporation created pursuant to Article VI of the
> California Constitution, to promote rehabilitation and to protect the
> public. This subdivision is declaratory of existing law."
>
>
> As such *State Bar of California v. Taggart* (In re Taggart), 249 F.3d
> 987 (9th Cir.2001) holding that costs awarded under the earlier version of
> that B&P section were compensation for actual pecuniary loss is no longer
> applicable. B&P Code 17206 speaks to fines for each instance of misconduct
> but does not address whether restitution referenced in B&P 17203 is a
> fine, penalty or forfeiture.
>
>
> The U.S. Supreme Court held in *Kelly v. Robinson* 479 U.S 36 (1988) held
> that criminal restitution is excepted from discharge under 11 U.S.C.
> 523(a)(7) as it is not a "wholly private penalty". It held that, "The
> criminal justice system is not operated primarily for the benefit of
> victims, but for the benefit of society as a whole...." Arguably a
> government entity civilly prosecuting a violation of CA B&P Code 17200 et.
> seq. is serving the same purpose and restitution would be excepted from
> discharge as a fine, penalty or forfeiture. However, the *Findley*
> decision seems to require the statute be more explicit and call civil
> restitution a penalty, fine or forfeiture to overcome it being deemed
> compensation for actual pecuniary loss.
>
>
> I appreciate anyone pointing me in the direction of any helpful authority.
>
>
> Mark Jessee
>
>
>
Not sure how much this helps you but civil restitution is not per se nondischargeable like its criminal counterpart. See76 B.R. 764.To be nondischargeable, the debt must (1) arise as a punishment or sanction for some type of wrongdoing by the debtor and not merely be an enhanced monetary remedy for what is essentially a breach of contract; (2) not be compensation for actual pecuniary loss; (3) be payable to a governmental unit; and (4) be for the benefit of a governmental unit.Sincerely, Michael AvanesianOn Wed, Nov 19, 2014 at 10:38 PM, jesseelaw@aol.com [cdcbaa] <cdcbaa@yahoogroups.com> wrote:
The post was migrated from Yahoo.