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

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