State of Missouri, Department of Social Services v. Spencer (In re Spencer)

State of Missouri, Department of Social Services v. Spencer (In re Spencer), Case No. 15-6030 (8th Cir. B.A.P. June 13, 2016)
Chapter 13 discharge injunction under sections 523(a)(5) and 1328(a) does not apply to domestic support obligations, including domestic support obligations disallowed under section 502.
Procedural context:
Appeal from the bankruptcy court for the Western District of Missouri - Kansas City finding the Division of Social Services in contempt and imposing sanctions for a willful violation of the debtor's discharge injunction for attempt to collect on a support debt after entry of a discharge.
Mr. Spencer owed a pre-petition domestic support obligation to his former spouse. The Division of Social Services (the "Division") timely filed a proof of claim for the arrearage. Upon a review, the Division determined that it had incorrectly calculated the arrearage and amended its proof of claim. The debtors' objection to the Division's proof of claim was sustained and an order was entered, holding that the Division waived a portion of the support arrears under Missouri law. After entry of the debtors' discharge, the Division issued a wage order to Mr. Spencer's employer. The debtors filed a motion for contempt for violation of the discharge injunction against the Division.
Kressel, Saladino, and Nail

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