Moser

This appeal poses the question whether a state court can order the defendant in a criminal case to pay restitution to a victim whose civil claim against the defendant for the damage covered by the restitution order has been discharged in bankruptcy. We conclude that it can.

As we shall explain, the Bankruptcy Code is not intended to limit the rehabilitative and deterrent options available to state courts. Because a restitution order serves the purposes of punishment, deterrence and rehabilitation, rather than the forced payment of a discharged debt, it is not precluded by bankruptcy law. Accordingly, we conclude the trial court in this case properly ordered victim restitution as a condition of probation, and will affirm the order.

Factual and Procedural Background

Defendant James D. Moser operated Northwestern Motor Cars, Inc. (Northwestern), a new and used car dealership. David and Kathy Ramirez agreed to purchase a car from Northwestern, which accepted the Ramirezes’ used car in partial trade and agreed to pay off the balance owed by the Ramirezes on the trade-in.

After Northwestern failed to pay off the balance owed on the Ramirezes’ used car, Moser stipulated to…