Lhamon v. Auglaize County Department of Human Services (In re Lhamon)

139 B.R. 849, 1991 Bankr. LEXIS 2088
CourtUnited States Bankruptcy Court, N.D. Ohio
DecidedSeptember 30, 1991
DocketBankruptcy No. 90-0217; Related No. 90-01278
StatusPublished
Cited by1 cases

This text of 139 B.R. 849 (Lhamon v. Auglaize County Department of Human Services (In re Lhamon)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lhamon v. Auglaize County Department of Human Services (In re Lhamon), 139 B.R. 849, 1991 Bankr. LEXIS 2088 (Ohio 1991).

Opinion

MEMORANDUM OPINION AND ORDER

RICHARD L. SPEER, Bankruptcy Judge.

This cause comes before the Court upon Complaint to Determine Dischargeability of Debt. A Pre-trial was held at which time the parties decided to have the issue determined on the written arguments of counsel. The Defendant filed a Motion for Summary Judgment to which the Plaintiff filed a Reply. The Court has reviewed the written arguments of the counsel and the relevant case law, as well as the entire record in this case. Based upon that review, and for the following reasons, this Court finds that the child support arrearage owed to the Defendant should be nondischargeable.

FACTS

The parties have stipulated to the following facts:

1. On October 9, 1974, Robert Dean Lhamon, Debtor/Plaintiff, was divorced from Patricia Lhamon.

2. Pursuant to the Divorce Entry, the Debtor/Plaintiff was to pay the sum of Forty-five dollars ($45.00) per week for the support of the three (3) minor children from that marriage.

3. During the year of 1975 to 1976 and during the period from approximately September of 1982 to March of 1983, the Debt- or/Plaintiff was incarcerated and served his sentence with the Ohio Department of Corrections.

4. Following the 1984 divorce, Patricia Lhamon applied for and received Aid to Dependent Children [hereinafter “ADC”] benefits for the three (3) minor children.

5. On June 6,1984, the Debtor/Plaintiff and his ex-wife, Patricia Lhamon, were remarried.

6. On April 19, 1990, Debtor/Plaintiff and Patricia Lhamon filed a voluntary Chapter 7 Petition for relief.

The Auglaize County Welfare Department, predecessor of the Augliaize County Department of Human Services and Defendant herein, argued that Patricia Lhamon assigned her interest in the child support obligation owed by the Debtor/Plaintiff to the Defendant. The Defendant contended that the assignment was consideration for Patricia Lhamon’s receipt of ADC benefits. [851]*851The Defendant submitted an assignment signed by Patricia Lhamon supporting its position. It was on that basis that the Defendant argued that Robert Dean Lha-mon owed the Defendant Seventeen Thousand Three Hundred Ninety-four Dollars and Forty-eight Cents ($17,394.48), which represented a past due arrearage arising from the assignment of a valid and legitimate child support order. The Debt- or/Plaintiff argued that the award of child support was excessive so as to be unreasonable and should be dischargeable.

LAW

The dischargeability of child support obligations is governed by Section 523(a)(5) of the Bankruptcy Code which states in pertinent part:

§ 523(a)(5) Exceptions to discharge
(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—
(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—
(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....

11 U.S.C. § 523(a)(5).

Under this provision, obligations which are imposed by a divorce decree, and which are in the nature of alimony, maintenance, or support are not dischargeable in a proceeding under Chapter 7. The fact that a particular obligation is labeled “child support” in the divorce decree does not necessarily determine the character of the obligation under federal bankruptcy law. In re Singer, 787 F.2d 1033, 1035 (6th Cir.1986); In re Hoover, 14 B.R. 592 (N.D. Ohio 1981). The Court may also look to state law for guidance. In re Calhoun, at 1107-1108.

In Calhoun, the Sixth Circuit Court of Appeals set forth a four-tier test for determining whether a debt is alimony or a nondischargeable support obligation. The Calhoun test is as follows:

(a) whether the intent of the state court or the parties was to create a support obligation;
(b) whether the support provision has the actual effect of providing the necessary support;
(c) whether the amount of support is so excessive as to be unreasonable under traditional concepts of support; and
(d) if the amount of support is unreasonable, how much of it should be characterized as nondischargeable for purposes of federal bankruptcy law.

In re Calhoun, 715 F.2d 1103, 1036 (6th Cir.1983). Once any of the elements are answered in the negative, the inquiry ends and the debt is deemed dischargeable.

Clearly, in the present case, the state court intended to create a support obligation when it ordered the Debt- or/Plaintiff to pay child support. In the case at bar, the Court believes that the child support obligation to be paid by the Plaintiff provided the necessary support for the Debtor/Plaintiff’s three minor children who were in Patricia Lhamon’s custody.

The Debtor/Plaintiff did not contest the intent or the effect of the obligation, but rather argued that due to the circumstances, the amount of the obligation was so excessive as to be unreasonable. The Debtor/Plaintiff contended that the Court should consider the effect of the child support order at times after it was entered, specifically during the Debtor/Plaintiff’s incarceration. The Debtor/Plaintiff claims the support order was unreasonable for him to maintain during his two (2) periods of incarceration.

Thus, the Court must determine whether the amount of support is so excessive as to be unreasonable under traditional concepts of support. Only if that answer is affirma[852]*852tive does the last prong of the test become relevant.

The issue of excessive support was addressed in a similar case applying the Calhoun test. In re Matyac, 102 B.R. 125 (S.D.Ohio 1989). In Matyac, the debtor argued the amount of support was so excessive as to be unreasonable under traditional concepts of support as to render support arrearages dischargeable in a Chapter 7 case. The court in Matyac found Eleven Dollars and Sixty-six Cents ($11.66) each week for each child to be a modest effort at such support and not unreasonable or excessive within the guidelines set by the Calhoun court. The Mat-yac court found the child support arrear-age of Twenty-seven Thousand Nine Hundred Fifty Dollars ($27,950) not to be dis-chargeable in the debtor’s Chapter 7 bankruptcy case.

In the case at bar, the Court believes the amount of support awarded was not unreasonable at the time of the divorce decree.

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189 B.R. 835 (N.D. Alabama, 1995)

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Bluebook (online)
139 B.R. 849, 1991 Bankr. LEXIS 2088, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lhamon-v-auglaize-county-department-of-human-services-in-re-lhamon-ohnb-1991.