Partida v. DOJ, No. 15-60045 (9th Cir. 2017)
Annotate this CaseThe Bankruptcy Code's automatic stay provision, 11 U.S.C. 362, does not operate to prevent the government's collection of criminal restitution under the Mandatory Victims Restitution Act (MVRA). In this case, debtor pleaded guilty to embezzlement and theft of labor union assets, for which she served eighteen months in prison and agreed to pay $193,337.33 in criminal restitution. After debtor's bankruptcy filing, the government offset payments made as income to debtor against the balance of the restitution debt. The Ninth Circuit affirmed the bankruptcy appellate panel's decision affirming the bankruptcy court's denial of debtor's motion to hold the government in contempt for violating the automatic stay through its collection efforts.
Court Description: Bankruptcy. Affirming a decision of the Bankruptcy Appellate Panel, and agreeing with other circuits, the panel held that the Bankruptcy Code’s automatic stay provision does not prevent the government from collecting criminal restitution under the Mandatory Victims Restitution Act.
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