7th Probate Court for the County of Charlevoix v. Erfourth (In Re Erfourth)

126 B.R. 736, 1991 Bankr. LEXIS 629, 1991 WL 73662
CourtUnited States Bankruptcy Court, W.D. Michigan
DecidedMay 1, 1991
Docket16-00760
StatusPublished
Cited by7 cases

This text of 126 B.R. 736 (7th Probate Court for the County of Charlevoix v. Erfourth (In Re Erfourth)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
7th Probate Court for the County of Charlevoix v. Erfourth (In Re Erfourth), 126 B.R. 736, 1991 Bankr. LEXIS 629, 1991 WL 73662 (Mich. 1991).

Opinion

OPINION

LAURENCE E. HOWARD, Bankruptcy Judge.

This matter is before the Court to determine the dischargeability of the Debtors’ obligation to the 7th Probate Court for the County of Charlevoix, pursuant to 11 U.S.C. § 523(a)(5). For the reasons stated below, the debt is declared to be discharge-able.

FACTS

The facts in this case are not in dispute. This case was scheduled for trial on February 7, 1991, but in a telephonic status conference conducted on February 5, 1991, the parties agreed that such a trial was unnecessary due to the absence of a factual dispute. The parties agreed to submit the legal issue of the applicability of § 523(a)(5) to the Court on the pleadings.

The Debtors are the parents of a son, Douglas Benjamin Erfourth. In 1982, when he was 10 years old, Douglas was charged with larceny and was brought before the Juvenile Division of the Charlevoix County Probate Court. No information was provided to the Bankruptcy Court as to the disposition of this charge. In 1984, Douglas was again charged, this time with malicious destruction of property. Again, no information was provided regarding the disposition of this charge. On April 28, 1986, when he was 14 years old, Douglas was charged with the breaking and entering of a residence, and with larceny. At that time, the juvenile court entered an Order of Commitment, which made Douglas a temporary ward of the court. He was allowed to remain in his parents’ home, and the Debtors were ordered to pay $10.00 per month to the court for costs and were put on notice that they would be held responsible for the costs of counseling services as well. On July 15, 1987, another order was entered which continued the temporary wardship and the reimbursement costs provided for in the previous order.

Prior to the juvenile court’s scheduled review of the July 15th order, Douglas committed an unauthorized entry without breaking. On November 25, 1987, he was brought before the court, which retained temporary wardship and committed him to a group home. In addition, the court continued the reimbursement costs. This order was scheduled to be reviewed in six months’ time. On May 6, 1988, Douglas was returned to the Debtors’ home but remained a temporary ward of the court. The court continued the previously ordered reimbursement costs.

On July 11, 1989, Douglas was charged with receiving or concealing stolen property. On August 9, 1989, the juvenile court entered an order entitled a Supplemental Order of Commitment, which kept Douglas as a temporary ward of the court and provided that the reimbursement costs were to be increased to $20.00 per month per parent, effective September 1, 1989. Since Douglas was five months away from his eighteenth birthday and was also facing pending criminal charges in the Circuit Court, the court entered a second order on September 7,1989, entitled an Order Terminating Court Jurisdiction. The order provided that while the court was terminating jurisdiction, it was reserving the right to collect reimbursement costs from the Debt *738 ors. The order also stated that the Debtors’ reimbursement payment was to be increased to $400.00 per month, effective November 1, 1989. It is unclear why two orders entered one month apart, by the same judge, contain such divergent repayment schedules.

On January 7, 1990, the Debtors’ filed their Chapter 7 bankruptcy petition. On February 8, 1990, the juvenile court entered an Order for Reimbursement. It provides that the total cost incurred during Douglas’ involvement with the court system was $17,753.37. The figure is based on court-appointed attorney fees of $212.00, Department of Social Services counseling costs of $1,617.95, Department of Social Services group home placement costs of $15,523.42, and court service fees of $400.00. The court order states that the Debtors are held responsible for $15,-000.00. The Debtors had previously paid $400.00, so the balance owing is $14,600.00. The balance consists of $14,414.25 in costs incurred by the Department of Social Services and $185.75 in attorney fees. The order also provides for monthly payments of $290.00. The Debtors have not made any payments, and the juvenile court filed the present proceeding on July 26, 1990, to determine the dischargeability of the debt.

LEGAL ARGUMENTS

The parties agree that their dispute centers on the applicability of § 523(a)(5) to the undisputed facts. That subsection provides:

(a) A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt—
[[Image here]]
(5) to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that—
(A) such debt is assigned to another entity, voluntarily, by operation of law, or otherwise (other than debts assigned pursuant to section 402(a)(26) of the Social Security Act, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State); or
(B) such debt includes a liability designated as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, maintenance, or support;

The juvenile court argues that a parent is required to financially support its child, and the court did so for the Debtors through court-ordered services. Thus, the Debtors owed a financial support obligation to their son, and payment on that debt is now owed to the court. Alternatively, the juvenile court argues that the debt was assigned to it pursuant to § 523(a)(5)(A).

The Debtors do not dispute that as parents, they have a duty to support their child, nor that they would be responsible for the court-ordered reimbursement costs absent bankruptcy. However, the Debtors focus on the language of § 523(a)(5), and maintain that since the support obligation is not owed “to a spouse, former spouse, or child of the debtor,” (emphasis added) but rather, to a court, the debt is dischargea-ble. The Debtors acknowledge that a valid assignment might create a nondischargeable debt, but that no such assignment exists. Thus, this case differs from the typical § 523(a)(5) proceeding, where the court is asked to determine whether the debtor’s obligation is actually in the nature of alimony, maintenance or support.

DISCUSSION

Neither party disputes the Debtors’ basic parental obligation for their son’s support. Indeed, it is mandated by the language of Mich.Comp.Laws Ann. § 722.3(1), which states:

The parents are jointly and severally obligated to support a minor unless a court *739 of competent jurisdiction modifies or terminates the obligation or the minor is emancipated by operation of law, except as otherwise ordered by a court of competent jurisdiction.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

County of Oakland v. Fralick
215 B.R. 132 (W.D. Michigan, 1997)
McCracken v. LaRue (In Re LaRue)
204 B.R. 531 (E.D. Tennessee, 1997)
In Re Spencer
182 B.R. 263 (E.D. California, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
126 B.R. 736, 1991 Bankr. LEXIS 629, 1991 WL 73662, Counsel Stack Legal Research, https://law.counselstack.com/opinion/7th-probate-court-for-the-county-of-charlevoix-v-erfourth-in-re-erfourth-miwb-1991.