Summary

Thurgood Marshall Pennsylvania Department of Public Welfare v…

Had Congress believed that restitution obligations were not "debts" giving rise to "claims," it would have had no reason to except such obligations from discharge in § 523 (a) (7) . Given Kelly's interpretation of § 523 (a) (7) , then, it would be anomalous to construe "debt" narrowly so as to exclude criminal restitution orders. Such a narrow construction of "debt" necessarily renders § 523 (a) (7) 's codification of the judicial exception for criminal restitution orders mere surplusage.
Source: Wikisource

Thurgood Marshall Pennsylvania Department of Public Welfare v…

Congress could well have concluded that maintaining criminal prosecutions during bankruptcy proceedings is essential to the functioning of government but that, in the context of Chapter 13, a debtor's interest in full and complete release of his obligations outweighs society's interest in collecting or enforcing a restitution obligation outside the agreement reached in the Chapter 13 plan.
Source: Wikisource

Thurgood Marshall Pennsylvania Department of Public Welfare v…

Petitioners maintain that a restitution order is not a "right to payment" because neither the Probation Department nor the victim stands in a traditional creditor-debtor relationship with the criminal offender. In support of this position, petitioners refer to Kelly's discussion of the special purposes of punishment and rehabilitation underlying the imposition of restitution obligations.
Source: Wikisource

Get perspective with Kwize: daily news enlightened by great literature