In Re Poffenbarger

281 B.R. 379, 2002 Bankr. LEXIS 967, 2002 WL 1626200
CourtUnited States Bankruptcy Court, S.D. Alabama
DecidedMarch 25, 2002
Docket19-10323
StatusPublished
Cited by12 cases

This text of 281 B.R. 379 (In Re Poffenbarger) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Poffenbarger, 281 B.R. 379, 2002 Bankr. LEXIS 967, 2002 WL 1626200 (Ala. 2002).

Opinion

ORDER GRANTING DEBTOR’S MOTION TO DETERMINE OWNERSHIP OF FUNDS, DENYING DEBTOR’S ATTORNEY’S MOTION FOR ADDITIONAL ATTORNEYS FEES OUT OF PAST DUE ALIMONY, DENYING MOTION TO CLAIM AS EXEMPT PAST DUE ALIMONY, MOOTING MOTION TO CLAIM AS EXEMPT PAST DUE AND FUTURE CHILD SUPPORT, AND GRANTING IN PART AND DENYING IN PART TRUSTEE’S MOTION FOR TURNOVER

MARGARET A. MAHONEY, Chief Judge.

This case is before the Court on the motion of the debtor to determine ownership, exemption and distribution of postpe-tition collection of pre- and postpetition child support, and for the allowance of additional attorneys fees for debtor’s attorney, and on the motion of the chapter 7 trustee for an order compelling the debtor and her attorney to turn over all funds at issue to the Trustee. This Court has jurisdiction to hear these matters pursuant to 28 U.S.C. §§ 157 and 1334 and the Order of Reference of the District Court. This is a core proceeding pursuant to 28 U.S.C. § 157(b) and this Court has the authority to enter a final order. For the reasons indicated and as more particularly set forth below, the Court is granting debtor’s motion to determine ownership of funds, is denying debtor’s attorney’s request for additional attorneys fees out of past due alimony, is denying debtor’s motion to claim as exempt funds representing past due alimony, is mooting debtor’s motion to claim as exempt funds representing past due and future child support, and is granting in part and denying in part the Trustee’s motion for turnover.

FACTS AND PROCEDURAL HISTORY

The debtor, Vera Arlene Poffenbarger, filed this chapter 7 bankruptcy proceeding on November 30, 1991. 1 On Schedule B, “Personal Property,” the debtor listed “alimony” and “back .child support” under paragraph 16 entitled “[a]limony, maintenance, support, and property settlements to which the debtor is or may be entitled.” Under the words “alimony” and “back child support” on Schedule B, the debtor lists “Kenneth M. Poffenbarger.” Kenneth Poffenbarger is the debtor’s ex-husband (see, e.g., Exhibits 2, 5) and is the person who owes child support and alimony to the debtor. As to the alimony, Schedule B lists “5200” in the column entitled “current market value of debtor’s interest in property without secured claim or exemption.” As to the back child support, debtor lists “5816” in this column. Thus, the debtor apparently claims a total due of $11,016 for back child support and alimony. The debtor’s Statement of Financial Affairs shows “income” in the years 2000 and 2001 for alimony and child support as follows:

AMOUNT SOURCE
$ 1,800.00 2001 alimony net of 2000 atty fees paid
$ 7,194.00 2000 alimony
$ 3,921.00 2001 child support of 9900 due
$10,254.00 2000 child support of 10800 due

(Statement of Financial Affairs, p. 1, ¶ 2). The debtor’s Statement of Financial Affairs and Amended Statement of Financial Affairs (the Amendment was filed December 10, 2001) lists the prepetition divorce action (i.e., Poffenbarger v. Poffenbarger) and shows the nature of the proceeding as “collect cs/alimony.”

On January 31, 2002, the debtor filed a Motion to Determine Ownership, Exemp *383 tion and Distribution of Post-Petition Collection of Pre- and Post-Petition Child Support, and for Allowance of Additional Attorney Fees for Debtor’s Attorney. The debtor’s motion alleges in part as follows:

Debtor’s former husband caused to be issued through the State of Alabama a check to the debtor in the amount of $6,862.75 dated January 22, 2002. That check is being held by the debtor’s attorney for the convenience of the parties until otherwise directed.

(Motion, ¶ 3). The motion also alleges that the debtor is entitled to a total of $11,016 in prepetition past due child support and alimony. (Motion, ¶ 1). The debtor asks the Court to determine ownership of the funds received and requests that debtor’s counsel be awarded reasonable attorneys fees out of these funds. (Motion, ¶¶ 4, 5).

The Bankruptcy Administrator (“BA”) filed a response to the debtor’s motion on February 5, 2002. The BA’s position is that “the funds being held by debtor’s attorney represent a prepetition, nonexempt receivable, and should be turned over to the trustee pursuant to 11 U.S.C. § 542(a).” (BA’s Response, ¶ 1). The BA contends that additional attorneys fees should not be awarded to debtor’s counsel under In re American Steel Product, 197 F.3d 1354 (11th Cir.1999), because debtor’s counsel is not a “professional person” employed by the estate under 11 U.S.C. § 330. (BA’s Response, ¶ 2). Proper notice of the debtor’s motion was given on February 6, 2002. On February 25, 2002, the chapter 7 trustee, Lynn Harwell, through her attorney, Lionel Williams, filed a response to the debtor’s motion. 2 The chapter 7 trustee adopts the BA’s position and requests that the Court, pursuant to § 542(a), issue a turnover order with respect to the funds being held.

The Court held a hearing on the motions on March 5, 2002. The debtor, Vera Poffenbarger, testified at the hearing and several exhibits were introduced. The evidence establishes the following facts pertinent to the motions before the Court:

The debtor married Kenneth Poffenbar-ger in 1993. They have two children who now live with the debtor. They were divorced in 1999. The debtor’s ex-husband was ordered to pay child support of $900 per month, which is due on the 1st of each month; he made some payments, but then stopped. According to debtor, approximately $5,000 of back child support was due at the time her bankruptcy petition was filed.

The debtor (a nonlawyer) testified that she did not claim the back support and alimony as “exempt” because it was her understanding that the law does not allow her to “exempt” these items. Her bankruptcy filing was due at least in part to credit card charges that her husband ran up. The debtor was a co-signatory on these credit card accounts, and her husband had used these cards for a business that he started in 1998. According to the debtor, these cards had a zero balance at the time she parted from her ex-husband.

During the Poffenbarger’s marriage, the debtor was taking classes toward a nursing degree. However, after the divorce, with Mr. Poffenbarger’s failure to pay support, she has had to work. The debtor has worked as a school bus driver for Adams Middle School. She has also waited tables. She has not had time to study for the nursing certification exam because she is so busy with whatever jobs she can find to make ends meet. She has failed the nursing exam once.

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Cite This Page — Counsel Stack

Bluebook (online)
281 B.R. 379, 2002 Bankr. LEXIS 967, 2002 WL 1626200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-poffenbarger-alsb-2002.