Drumheller v. Drumheller (In Re Drumheller)

13 B.R. 707, 1981 Bankr. LEXIS 3124
CourtUnited States Bankruptcy Court, W.D. Kentucky
DecidedAugust 19, 1981
Docket19-30331
StatusPublished
Cited by4 cases

This text of 13 B.R. 707 (Drumheller v. Drumheller (In Re Drumheller)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Drumheller v. Drumheller (In Re Drumheller), 13 B.R. 707, 1981 Bankr. LEXIS 3124 (Ky. 1981).

Opinion

MEMORANDUM AND ORDER

STEWART E. BLAND, Bankruptcy Judge.

This bankruptcy case comes before the Court on complaint of Judith Elaine Drum-heller, by counsel, seeking a determination that certain debts owed by the debtor pursuant to a Decree of Dissolution of Marriage entered by the Muhlenberg Circuit Court, Muhlenberg County, Kentucky, on August 14, 1980, and subsequently reduced to a common law judgment entered by that Court on September 22, 1980, be declared nondischargeable pursuant to 11 U.S.C. § 523(a)(5)(B). Specifically, the debts and liabilities in issue relate to the discharge-ability of court costs, attorney fees, a fuel oil bill, a debt on a piano, and an obligation to transfer a 1970 automobile to the plaintiff herein.

The facts as they pertain' to the issues before the Court are as follows:

On August 14, 1980, the Muhlenberg Circuit Court entered a divorce decree dissolving the marriage of the plaintiff and defendant-debtor. That decree provided that the plaintiff be awarded various items of property, which included a piano and a 1970 Chevrolet Nova automobile. With the exception of the debt on the parties’ mobile home, the defendant-debtor was directed to pay the costs of the action and the plaintiff’s reasonable attorney fees. The decree further provided that the custody of the parties’ three children was awarded to plaintiff, that defendant was to pay $125.00 monthly for support of the children, and additionally $125.00 monthly to the plaintiff for specific maintenance.

On September 2, 1980, the court awarded to the plaintiff’s attorney a fee in the amount of $1150.00, and further assessed costs in the amount of $91.00. This order directed that the defendant-debtor pay the amounts because plaintiff “is not able to support herself through appropriate employment and because of the resources of the parties.” Subsequently, on September 22, 1980, the Muhlenberg Circuit Court entered an order which converted certain debts owing under the divorce decree to a common law judgment in favor of the plaintiff.

The debtor filed a voluntary petition in bankruptcy on October 2, 1980, and listed plaintiff’s attorney as a creditor pursuant to that petition.

The United States Bankruptcy Court has jurisdiction of the parties and the subject matter of this controversy pursuant to 28 U.S.C. § 1471.

Section 523(a)(5), 11 U.S.C. § 523(a)(5), provides in pertinent part:

A discharge under section 727, 1141, or 1328(b) of this title does not discharge an individual debtor from any debt... (5) to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of both spouse or child, in connection with a separation agreement, divorce decree, 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; 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 commentary to this section of the Bankruptcy Code provides that “[paragraph (5) excepts from discharge debts to a spouse, former spouse, or child of the debtor for alimony to, maintenance for, or support of, the spouse or child. This language, in combination with the repeal of section 456(b) of the Social Security Act (43 U.S.C. *709 § 656(b)) by section 327 of the bill, will apply to make nondischargeable only alimony, maintenance, or support owed directly to a spouse or dependent. (Citation omitted.) What constitutes alimony, maintenance, or support, will be determined under the bankruptcy laws, not State law.” H.Rep.No.95-595, 95th Cong., 1st Sess., 364 (1977), U.S.Code Cong. & Admin.News 1978, pp. 5787, 6320; See also In Re Allen, 4 B.R. 617, 6 B.C.D. 576, 577 (Bkrtcy.E.D. Tenn. 1980).

A bankruptcy court “.. .is not confined to a review of the judgment and record in a prior state court proceeding when considering the dischargeability of respondent’s debt.” In Re Williams, 3 B.R. 401, 1 C.B.C.2d 1086 (Bkrtcy.N.D.Ga.1980), citing Brown v. Felsen, 442 U.S. 127, 99 S.Ct. 2205, 60 L.Ed.2d 767 (1979).

“Where parties characterize a debt as alimony, support or maintenance, the Court under the Bankruptcy Reform Act § 523(a)(5) must first determine if the debt is payable directly to the spouse; if it is not, then it is dischargeable no matter how the parties characterize it.” In Re Daiker, 5 B.R. 348, 351 (Bkrtcy.D.Minn.1980).

A determination as to whether the debts sought to be found nondischargeable must satisfy a twofold test:

“... that [the alimony, maintenance, or support] must be payable to a spouse, former spouse and/or child ... [and] must be actually of the nature of alimony, maintenance or support.” Matter of Spong, 3 B.R. 619, 1 C.B.C.2d 1104, 1107-1108 (Bkrtcy.W.D.N.Y.1980).

Clearly, in the instant case, the attorney fees, court costs and debt on the fuel oil bill are not payable directly to the former spouse, and regardless of how the nature of those debts are characterized, these obligations are dischargeable in bankruptcy. As a further indication that these debts do not constitute maintenance is the provision in the decree and later order that specific maintenance is due plaintiff in the amount of $125.00 per month.

The rationale of the dischargeability of the above debts as not constituting maintenance applies likewise to the conclusion that the debt owing on the piano is not in the nature of child support. It may be noted that specific support payments are again provided for in the decree in the amount of $125.00 monthly. In the case In Re Daiker, supra, the Court held that debts incurred for the purchases of an automobile, furniture, gasoline, medical services and other household items during the marriage were not excepted from discharge on the ground that they constituted support. The state court had ordered the husband-debtor to assume all of the debts of the parties but did not order the amounts paid directly to the former spouse. The Bankruptcy Court found that this did not meet the statutory requirement that they be payable to the spouse in order to be nondischargeable:

“An obligation to hold a spouse harmless from certain debts may be considered an obligation subject to the nondischarge-ability provisions of § 523(a)(5), Bankruptcy Code, but whether it is or not must ... be determined by the Bankruptcy Court within the framework of federal law and must be consistent with the fresh start goal of the Bankruptcy Act.” At 351.

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Cite This Page — Counsel Stack

Bluebook (online)
13 B.R. 707, 1981 Bankr. LEXIS 3124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/drumheller-v-drumheller-in-re-drumheller-kywb-1981.