Boston bankruptcy lawyers must counsel clients regarding what to do when income and assets are insufficient to cover debts.
However, we rarely get a case like the one in Grand Rapids, Michigan, where a bank teller concocted an “elaborate scheme” to bilk a bank out of $578,836 in seven years. The money? It went to luxuries for her family and to gambling, including $134,000 to two casinos in 2009! There was a criminal case and following a guilty plea, the teller was ordered to pay restitution. On the other hand, the typical Boston bankruptcy case may involve a client who took a cash withdrawal and lost some money at Foxwoods.
Absent fraud, many of such debts can be discharged in bankruptcy. Filing for personal bankruptcy may help Jo Ann Wierenga, 48, discharge her credit card and other consumer debts. However, after her three years in jail, a personal bankruptcy discharge will not address the $500,000 federal restitution order. Bankruptcy discharge laws specifically exclude most criminal fines, and in particular fines relating to money obtained by “false pretenses…or actual fraud” under 11 U.S.C. 523(a).