10th Circuit BAP Affirms Judgment in Bankruptcy Case Preserving Crime Victim’s Restitution Rights

The 10th Circuit Bankruptcy Appellate Panel affirmed the U.S. Bankruptcy Court for the District of Colorado’s ruling in favor of a Montgomery Little client that a criminal restitution debt is not dischargable in bankruptcy.  The panel followed the U.S. Supreme Court’s ruling in Kelly v. Robinson and held that section 523(a)(7) of the Bankruptcy Code prevents a bankruptcy debtor from discharging any restitution award authorized as part of a state court criminal sentence.  The Tenth Circuit Bankruptcy Appellate Panel consists of nine bankruptcy judges from throughout the circuit who sit in three-judge panels to review appeals originating from the U.S. Bankruptcy Courts in Colorado, Kansas, Oklahoma, New Mexico, Wyoming, and Utah.