Coleman v. McCord (In Re McCord)

151 B.R. 915, 1993 WL 74361
CourtUnited States Bankruptcy Court, E.D. Missouri
DecidedApril 2, 1993
Docket19-10071
StatusPublished
Cited by6 cases

This text of 151 B.R. 915 (Coleman v. McCord (In Re McCord)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coleman v. McCord (In Re McCord), 151 B.R. 915, 1993 WL 74361 (Mo. 1993).

Opinion

MEMORANDUM

JAMES J. BARTA, Bankruptcy Judge.

The matter before the Court is one of two adversary proceedings to determine dischargeability of debts that are based on a state court order that had been entered in a paternity proceeding involving Joseph David McCord, the co-Debtor here. The facts are summarized below.

Debtors, Joseph David and Tracy Mae McCord filed for relief under Chapter 7 of the Bankruptcy Code on July 26, 1991. On September 9, 1991, Charlotte Marie Coleman commenced Adversary Proceeding Number 91-4269 against Joseph David McCord only. On September 23, 1991 both Debtors as Plaintiffs commenced Adversary Proceeding Number 91-4330 against Kenneth A. Seufert, Attorney at Law, the State of Missouri Child Enforcement Unit and Farmington Community Hospital. Both adversary complaints request a determination of dischargeability of debts that Joseph McCord was directed to pay pursuant to an order of the Circuit Court of St. Francois County, Missouri entered on June 6, 1991. This state court order was the result of Coleman’s state court petition to determine paternity. The state court declared Joseph McCord to be the natural father of Coleman’s minor son and ordered Joseph McCord to begin paying child support. The state court order contained a number of other provisions including:

(i) a judgment in favor of Coleman against Joseph McCord for $13,470.00 for back child support for necessaries furnished for the minor child;

(ii) a judgment in favor of the State of Missouri Child Support Enforcement Unit against Joseph McCord for $3,458.00 for payments made under the provisions of Aid to Families with Dependent Children (AFDC) to Coleman on behalf of the minor child;

(iii) an assumption by Joseph McCord of the child birth expenses of the minor child *917 owed to Farmington Regional Medical Center in the amount of $1,259.00; and

(iv) that Joseph McCord was to pay to Coleman $187.50 for reimbursement of one-half of the costs of the blood tests.

These Adversary Proceedings have presented the question of whether or not the above debts are dischargeable as maintenance, alimony or support under Section 523(a)(5) of the Bankruptcy Code. The Debtors have also raised the question of whether the obligation to Kenneth A. Seu-fert for Coleman’s attorney fees in the state court action are non-dischargeable. The attorney fees were based on a contingency fee contract between Charlotte Marie Coleman and Kenneth A. Seufert.

The parties have agreed that these Adversary Proceedings may be determined upon consideration of a single set of pleadings. Accordingly, Debtors filed their memorandum in support of the complaint to determine dischargeability; the State of Missouri Child Support Enforcement Division filed its brief in support of its position; Coleman and Seufert filed a reply to the Debtors’ memorandum, which incorporated their memorandum in support of their motion for summary judgment; and Debtors filed a reply memorandum. The matter was then taken as submitted to the Court. The motion for summary judgment on behalf of Coleman and Seufert was denied by an order of this Court dated October 30, 1991, in view of the parties’ agreement to submit the substantive issues on a stipulation of facts and legal memoranda.

The Bankruptcy Code recognizes that support obligations of parents to their children born out of wedlock are subject to exception from discharge, just as such obligations to children born in wedlock may be excepted from discharge.

Section 523(a)(5), as amended July 1984, makes clear that support obligations imposed by a court of record in a paternity action are nondischargeable on the same basis as those awarded in connection with a divorce or dissolution proceeding.

In re Barbre, Smith v. Barbre, 91 B.R. 846, 847 (Bankr.S.D.Ill.1988).

It is noted that Missouri law recognizes that the father of minor children has a common law duty and obligation to support his children. State ex rel. Division of Family Services v. Standridge, 676 S.W.2d 513, 515 (Mo. banc 1984) (cites omitted).

Whether a particular debt is a support obligation or part of a property settlement is a question to be determined under federal bankruptcy law. H.R.Rep. No. 595, 95th Cong., 2d Sess. 364; S.Rep. No. 989, 95th Cong., 2d Sess. 79, U.S.Code Cong. & Admin.News 1978, p. 5787. Whether a debt is

in fact for ‘support’ and therefore not dischargeable in bankruptcy, is a question of fact to be decided by the Bankruptcy Court as trier of fact in light of all facts and circumstances relevant to the intention of the parties.

In re Williams, 703 F.2d 1055, 1057-58 (8th Cir.1983).

The Debtors have argued that the award by the state court to Coleman for $13,470.00 was designated by the state court as an award for reimbursement of necessaries and not as child support. The state court found that “Coleman is entitled to an award of back child support for necessaries furnished the child”. (Judgment order of June 6, 1991, p. 2). Whether this obligation is for support and therefore non-dischargeable is a question of federal bankruptcy law, not state law. In making the awards in the case, the state court considered the financial abilities of the parties. In setting the amount of child support to be paid by McCord in the future, the state court considered the earning capacities of both parties, McCord’s other child support obligation, Coleman’s day care cost, the age of the child, and McCord’s assumption of the child birth expenses. (Judgment order of June 6, 1991, p. 3-4). There is nothing in the record to suggest that there was an unequal assessment of support obligations in the state court action. The record indicates and the Court finds and concludes that this award was in the nature of child support. Therefore, the Court concludes further that the award of $13,470.00 to Coleman was intended to be and there *918 fore, is for the support of Joseph McCord’s child and is non-dischargeable in this bankruptcy ease.

The Debtors have argued further that the debt owed to the State of Missouri is an assignment to a third party, is not payable directly to the child or the child’s mother and is therefore dischargeable. The Debtors correctly recognize that the Bankruptcy Code provides that a debt which is a child support obligation assigned to the state under the federal Social Security Act, 42 U.S.C. § 602(a)(26), as a condition for receiving AFDC, is not discharged in bankruptcy. 11 U.S.C. § 523(a)(5)(A). The Debtors argue that because there was no specific finding by the state court that this was the condition under which Coleman received AFDC, the debt is to be discharged in this case. Such a specific finding is not necessary however in view of the language of the State statutes.

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Related

Pitts v. Missouri (In Re Pitts)
262 B.R. 482 (W.D. Missouri, 2001)
Williams v. Kemp (In Re Kemp)
242 B.R. 178 (Eighth Circuit, 1999)
Williams v. Kemp (In Re Kemp)
234 B.R. 461 (W.D. Missouri, 1999)
Matter of Olson
200 B.R. 40 (D. Nebraska, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
151 B.R. 915, 1993 WL 74361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coleman-v-mccord-in-re-mccord-moeb-1993.