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Litigation

By ALM Staff | Law Journal Newsletters |
January 29, 2009

Debtor-Husband Cannot Discharge Debt of Paying Wife's Attorney Fees

Debtor-husband cannot discharge debt of paying wife's attorney fees incurred for enforcement of debtor's obligations under the divorce decree. In re Golio, 393 B.R 56 (Bkrtcy.E.D.N.Y. 2008).

The former wife of a Chapter 7 debtor brought a proceeding to determine the nondischargeability of judgment debts imposed on the debtor in a state court action to enforce his obligations under the divorce decree. The court did not have to determine whether the obligations were in the nature of “support” or “property settlement” as the distinction was irrelevant to its decision regarding dischargeability. The court found that the divorce decree required each party to indemnify the other for attorney fees and expenses incurred to enforce the provisions of the decree. Thus the debtor's obligation to reimburse his ex-wife for legal fees she incurred as a result of his nonperformance of his obligations under the decree was nondischargeable, regardless of whether the obligation was payable directly to his ex-wife or to her attorneys.

Debtor-Husband Cannot Discharge Debt of Paying Wife's Attorney Fees

Debtor-husband cannot discharge debt of paying wife's attorney fees incurred for enforcement of debtor's obligations under the divorce decree. In re Golio, 393 B.R 56 (Bkrtcy.E.D.N.Y. 2008).

The former wife of a Chapter 7 debtor brought a proceeding to determine the nondischargeability of judgment debts imposed on the debtor in a state court action to enforce his obligations under the divorce decree. The court did not have to determine whether the obligations were in the nature of “support” or “property settlement” as the distinction was irrelevant to its decision regarding dischargeability. The court found that the divorce decree required each party to indemnify the other for attorney fees and expenses incurred to enforce the provisions of the decree. Thus the debtor's obligation to reimburse his ex-wife for legal fees she incurred as a result of his nonperformance of his obligations under the decree was nondischargeable, regardless of whether the obligation was payable directly to his ex-wife or to her attorneys.

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