Smith v. State of Missouri (In re Smith)

Smith v. State of Missouri (In re Smith), 12-6060 (8th Cir. BAP Feb. 5, 2013)
A debtor’s post-petition incarceration expenses under a Missouri Incarceration Reimbursement Act (MIRA) judgment were not discharged in bankruptcy. See Mo. Ann. Stat. Sec. 217.825-217.841. The debtor's pre-petition accrued costs under the judgment were discharged.
Procedural context:
Debtor filed bankruptcy on September 14, 2010 and received his discharge on March 11, 2011. The case was closed on July 28, 2011. Debtor filed a motion for contempt on September 19, 2012 that alleged a violation of the discharge injunction. The bankruptcy court denied the motion. The 8th Circuit BAP affirmed.
On January 20, 2009, the State of Missouri obtained a judgment against Zachary Smith, the debtor, for reimbursement of incarceration expenses against the debtor. This judgment included $87,830.13 for reimbursement through March 26, 2007 and reimbursement for expenses through Smith's release date. Smith was serving a life sentence without parole. This judgment directed the Inmate Treasurer of the Department of Corrections to forward 90% of the deposits made to Smith's inmate account. This directive excluded money from wages and bonuses earned while incarcerated. In 2010, Smith filed bankruptcy. He received his discharge in early 2011. In September of 2012, the Treasurer once again commenced forwarding deposits from Smith's account. Smith alleged that this violated the July 28, 2011 discharge injunction he received as a result of his bankruptcy filing. The bankruptcy court and the BAP agreed that the injunction did not discharge costs that accrued post-petition. The injunction only discharged reimbursement for expenses that accrued pre-petition.
Kressel, Saladino, and Nail. Opinion written by Judge Kressel.

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