Expert: Mark J. Markus- California Bankruptcy Attorney - 6/5/2006

Question
I am going to have to file bankruptcy sometime soon.  I have little income, but some credit card bills and medical bills I can't pay.

I was charged with welfare fraud a few years ago because my name was on my mother's saving account.  She thought it was a good idea in case she died.  I never took a dime of her money, couldn't afford a lawyer, went with the Public Defender, he said to plead guilty to avoid going to jail.  They demanded restitution of $7500.  I paid about $200 of it over the last 3 years.  Now probation is over and they are turning the balance into a Civil Judgement.  I still can't pay it.

Will this judgement be non-dischargeable because it was based on welfare fraud? And, if so, can I pay it off with a credir card, and will that be dischargable?

Answer
Criminal restitution obligations are not dischargeable in any bankruptcy chapter.  You can pay it with a credit card (or cash advance, or any other means of payment) and that new debt may ultimately be dischargeable in a future bankruptcy case depending on whether or not you intended to repay that debt at the time you incurred it and the creditor in question can prove that you did not intend to repay it.