Phegley v. Phegley (In re Phegley)

Summarized by Mark Bossi , Thompson Coburn LLP
15 years 1 month ago

Citation:

8th Circuit BAP, Case No. 10-6063, January 25, 2011

Tag(s):

8th Circuit

Ruling:

The 8th Circuit BAP rules that a Debtor's obligations for monthly maintenance payments and attorney's fees pursuant to a Missouri marriage dissolution proceeding are excepted from discharge pursuant to 11 U.S.C. Section 523(a)(5).

Procedural context:

Appeal from final judgment of the Bankruptcy Court for the Western District of Missouri holding that maintenance payments and attorney's fees awarded in a divorce decree are nondischargeable as domestic support obligations.

Facts:

The Circuit Court of Jackson County, Missouri entered a decree dissolving the marriage of the debtor and his wife. Among other things, the decree provided that the debtor was to pay his wife $1,250 per month for contractual maintenance for a period of 48 months; provided that the maintenance would earlier terminate upon the wife's remarriage or the death of either party. The decree further provided that the debtor was to pay the wife's attorney's fees. After the debtor filed a Chapter 13 bankruptcy, the wife filed a complaint to determine dischargeability of the monthly maintenance payments and attorney's fees. The bankruptcy court ruled that the maintenance payments and attorney's fees were in the nature of support and, therefore, not dischargeable under Section 523(a)(5) of the Bankruptcy Code. On appeal, the 8th Circuit BAP affirms.

Judge(s):

Kressel, Saladino, Nail

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