Wymer v. Wymer

16 B.R. 497
United States Bankruptcy Appellate Panel for the Ninth Circuit·Decided September 10, 1980·No. BAP No. 80-0001-KGH, Bankruptcy No. 79-23464WH, Adv. No. 79-0008·Published·Cited by 11 cases

Opinions

KATZ, Bankruptcy Judge:

The instant appeal, while couched in terms of whether or not MRS. WYMER, plaintiff/appellee, has a non-dischargeable claim for accrued but unpaid child support against MR. WYMER, defendant/appellant, raises the issue of whether appellee even has an assertable claim against appellant.

The appellant alleges that any monies he owed to appellee prior to October 31, 1979, were in fact assigned by operation of law to the County of Los Angeles and to the State of California, as a result of appellee receiving Aid to Families with Dependent Children (AFDC). Hence, appellant argues that the appellee has no claim against him and further, that the claim having been so assigned is dischargeable in his bankruptcy [499] proceeding pursuant to § 523(a)(5)(A) of the Bankruptcy Code.1

As a subsidiary issue, the appellant alleges that even if we find no assignment to the county and to the state, by virtue of the fact that the appellee assigned 50% of her recovery to her attorney as part of a contingent fee contract, at least that portion is dischargeable under § 523(a)(5)(A).

Since, for reasons hereinafter stated, we have determined that the appellee has no claim against the appellant for any sums due for child support prior to October 31, 1979, the judgment will be reversed on those grounds and we need not discuss the issue of dischargeability under § 523(a)(5) (A).

FACTS

On January 22,1974, in an action entitled WYMER vs. WYMER, Superior Court of California, County of Los Angeles, Action # EAD34766, an Interlocutory Judgment of Dissolution of Marriage was entered which, among other things, ordered JOSEPH P. WYMER, JR., the appellant, to pay child support in the amount of $25.00 per week. Pursuant to California Civil Code § 4702(a)2 the child support payments were ordered to be made through the office of the Court Trustee.

From the date of the Interlocutory Judgment of Dissolution until October 31, 1979, the date on which AFDC to MRS. WYMER ended, the appellant made no child support payments pursuant to that judgment. In order to provide support for herself and the minor child of the parties, MRS. WYMER applied for and was granted aid under the AFDC Program.3

On September 26, 1979, appellee sought and obtained the issuance of a writ of execution for child support which had accrued to that date in the amount of $6,800.00 plus $1,342.05 in interest and $4.00 in costs.

Armed therewith she caused the Marshal of San Bernardino County to levy on a number of vehicles belonging to appellant.

When the efforts of the appellant to quash execution and vacate levy and to. claim those vehicles as exempt failed, he filed the instant Petition for Relief under Chapter 7 of the Bankruptcy Code, 11 U.S.C. § 701 et seq., on November 13, 1979, thereby invoking the provisions of § 362(a)(1) & (2).4

[500] The appellee then commenced an action to have her claim for the accrued but unpaid child support determined to be non-dis-chargeable. After trial, William H. Hyer, Bankruptcy Judge, determined the claim of MRS. WYMER to be non-dischargeable and entered judgment in her favor for $8,146.05 plus interest and costs. Judge Hyer also vacated the stay imposed by § 362(a) of the Bankruptcy Code thereby permitting the appellee to proceed with her state court action.

The instant appeal followed.

DISCUSSION

The crucial issue seems to be whether MRS. WYMER had as of September 26, 1979, a claim against MR. WYMER.

Put another way, if the claim for child support had been assigned to the County of Los Angeles and to the State of California, it seems that these are the entities to assert the claim, unless those entities have somehow given up their rights thereto and restored such to MRS. WYMER.

If the county or state assert their rights on the claim, which they have not, it is clear from reading § 523(a)(5)(A), that the claim is dischargeable. For, although the statutory history of that section is scant, it teaches us that § 523(a)(5)(A) was enacted in its present form to overcome judicial decisions such as Williams v. Department of Social and Health Services, State of Washington, 529 F.2d 1264 at 1265 (9th Cir. 1976), which held that a claim for child support assigned to a state agency was non-dischargeable under § 17(a)(7)5 of the Bankruptcy Act, 11 U.S.C. § 35(a)(7).

Therefore, § 523(a)(5) specifically provides that child support assigned, by operation of law or otherwise, to an entity, [which, according to § 101(14)6 of the Bankruptcy Code, 11 U.S.C. § 101(14), includes a governmental unit], is to be discharged. The plain wording of § 523(a)(5) is such as to deny discharge of child support or alimony only if the duty to pay is directly to the person to whom the money is owed. Therefore where a state or county has been assigned such support rights in return for financial relief, such as AFDC, it is apparent that Congress intended that the debtor’s burden of making those support payments to the assignee governmental agency be dischargeable in recognition of the fact that such an agency can better absorb the loss than can the debtor. This is in concert with the philosophy of giving the debtor a “fresh start unencumbered by the debts of the past.” Local Loan Co. v. Hunt 292 U.S. 234, 54 S.Ct. 695, 78 L.Ed. 1230 (1934).

Since neither the county nor the state are asserting a claim against MR. WYMER, we come to the question of MRS. WYMER’S ability to assert the claim she is here pursuing.

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Wymer v. Wymer, 16 B.R. 497 (bap9 1980).

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