Criminal Restitution Payments Avoidable In Bankruptcy: Victims Must Pay Up, Get In Line
By David Shaiken In August, the U. S. Court of Appeals for the 9th Circuit ruled that criminal restitution payments made during the preference period can be avoided and recovered under the Bankruptcy Code’s preference statute, 11 U.S. C. § 547. State Compensation Insurance Fund v. Zamora (In re Silverman), 616 F.3d 1001 (9th Cir.…