The obligation of a police officer to repay salary after being convicted of a crime is a nondischargeable debt, according to Bankruptcy Judge Kathryn C. Ferguson and District Judge Michael A. Shipp of Trenton, N.J.
Affirming Judge Ferguson’s decision, the September 28 opinion by Judge Shipp holds that the obligation to repay salary was not compensation for pecuniary loss. Rather, it was penal and thus nondischargeable, even though measured by the former officer’s salary.
The decision was based on Supreme Court authority that has been criticized recently for departing from the language of Section 523(a)(7).
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