Wisconsin Attorney Owes Disciplinary Sanction Despite Bankruptcy

An attorney’s unpaid sanction of disciplinary costs isn’t dischargeable in bankruptcy because it’s a “penalty” paid to the state, the Seventh Circuit said Monday upholding his obligation to pay about $12,000 before he can be reinstated to the Wisconsin state bar.

The appeals court, addressing the issue for the first time, joined other federal appeals courts that have considered the issue, it said.

The Wisconsin Supreme Court reprimanded attorney Tim Osicka for failing to respond to clients who were unhappy with his work and for failing to cooperate with a state bar investigation, according to the U.S. Court of Appeals ...