Coughlin v. Commonwealth of Pennsylvania Department of Public Welfare (In Re Coughlin)

OPINION

WILLIAM A. KING, Jr., Bankruptcy Judge.

The issue at bench is whether a public welfare agency may be reimbursed for interim assistance benefits received by a debtor where the debt has been discharged under the Bankruptcy Code (“Code”). The question is presented on the debtor’s motion for summary judgment in his action to recover funds being withheld by the agency. For the reasons stated herein, we conclude that the agency may not be reimbursed. Accordingly, we will order the agency to remit the funds being withheld to the debtor.

The facts of the case, in light of the standard for…