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IN RE JOHNSON-ALLEN

Nos. 88-1610, 88-1635.

871 F.2d 421 (1989)

In re Lorraine JOHNSON-ALLEN. COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF PUBLIC WELFARE v. Lorraine JOHNSON-ALLEN. In re Ruby STEFFLER a/k/a Ingrid J. Steffler. COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF PUBLIC WELFARE v. Ruby STEFFLER a/k/a Ingrid J. Steffler. Appeal of Lorraine JOHNSON-ALLEN and Ruby Steffler. In re Edward and Debora DAVENPORT. Edward and Debora DAVENPORT v. COMMONWEALTH OF PENNSYLVANIA, DEPARTMENT OF PUBLIC WELFARE and Court of Common Pleas of Bucks County, and Edward Sparkman, Trustee. Appeal of Edward and Debora DAVENPORT.

United States Court of Appeals, Third Circuit.

Decided March 28, 1989.

Rehearing and Rehearing Denied April 27, 1989.

Attorney(s) appearing for the Case

David A. Searles (argued), Eric L. Frank, Community Legal Services, Inc., Philadelphia, Pa., for appellants.

Mary B. Seiverling (argued), Deputy Atty. Gen., Harrisburg, Pa., for appellee.

Harriet R. Brumberg, Asst. Dist. Atty., Philadelphia County, George C. Yatrone, Dist. Atty., Berks County, District Attorneys' Ass'n of Pennsylvania, Philadelphia, Pa., amicus curiae.

Before GIBBONS, Chief Judge, and HUTCHINSON and ROSENN, Circuit Judges.

Rehearing and Rehearing In Banc Denied April 27, 1989.

OPINION OF THE COURT

ROSENN, Circuit Judge.

These consolidated appeals raise an important issue, particularly for governmental agencies engaged in public assistance, of whether criminal restitution imposed as a penalty for welfare fraud constitutes a debt dischargeable under Chapter 13 of the Bankruptcy Code, 11 U.S.C.A. § 1301, et seq. (West 1979 & Supp.1988). The bankruptcy...

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