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Judge: Lawyer Can’t Dodge $364,000 Contempt Fine Using Bankruptcy

Submitted by jhartgen@abi.org on

Hit with a big fine for violating a judge’s order, Michigan lawyer David W. Charron filed for bankruptcy protection to avoid paying it, the Wall Street Journal Bankruptcy Beat Blog reported on Friday. But a bankruptcy judge derailed that plan on Wednesday, ruling that Charron’s civil contempt fine of $363,506.77 — a penalty for orchestrating the sale of an insurance firm despite a court order not to do so — isn’t the type of debt that a person can get rid of using bankruptcy. In his 26-page ruling, Judge James Boyd said that Charron can’t cancel his debt to Glenn Morris, the former co-owner of insurance agency Morris, Schnoor & Gremel Inc.