Bankruptcy and Juvenile Restitution

The 10th Circuit Court of Appeals, in a case of first impression, has ruled that restitution orders arising from juvenile delinquency proceedings are dischargable in bankruptcy under Chapter 13.

Starting in 1990, criminal restitution orders were made non-dischargable in Chapter 13, but the Court held that a juvenile delinquency determination was a status, rather than a crime, and that the ban on discharge of criminal restitution therefore, did not apply.