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Ballard Spahr LLP v Official Committee of Equity Security Holders

Summarizing by Paris Gyparakis

Thomas v. Clark (In re Thomas)

Citation:
No. 14-5735 (6th Cir.Jan. 8, 2015)
Tag(s):
Ruling:
Claim for Debtor's share of second mortgage on former marital house and judgment lien on the house constituted domestic support obligations and were not dischargeable in Debtor's bankruptcy case.
Procedural context:
Appeal from decision of Sixth Circuit Bankruptcy Appellate Panel affirming decision of bankruptcy court holding obligations were nondischargeable domestic support obligations.
Facts:
In connection with his first divorce, Debtor was obligated to convey marital home to ex-wife and pay both mortgages on the home and to pay child support but no other spousal support. After couple remarried and divorced again, Debtor was obligated to pay a lesser amount of child support and the first mortgage on the marital home and half of the second mortgage, but no spousal support. Debtor's ex-wife was to receive all proceeds upon sale of the house. Debtor failed to make payments on the second mortgage, and a judgment creditor of Debtor's filed a lien against the house for an unrelated individual debt. Debtor's ex-wife was forced to pay the second mortgage and judgment lien creditor when she sold the house, and filed a claim in Debtor's bankruptcy case for his portion of the second mortgage and the judgment lien. She asserted that the claimed amounts constituted nondischargeable domestic support obligations. The bankruptcy court agreed and Debtor appealed.
Judge(s):
Sutton, McKeague, and Kethledge, Circuit Judges

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