In re: Tentadue

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
No. 15-3142
Decision Date: 
September 14, 2016
Federal District: 
E.D. Wisc.
Holding: 
Affirmed

Dist. Ct. did not err in affirming Bankruptcy Ct.’s order that overruled debtor’s objection to creditor’s designation of her $25,000 claim as non-dischargeable domestic support obligation in instant Chapter 13 bankruptcy proceeding. Record showed that state court had ordered debtor to pay his ex-wife’s attorney $25,000 of $50,000 in legal fees that ex-wife had incurred during protracted litigation over custody and child support issues, after finding that debtor had engaged in overly litigious conduct during said litigation. Bankruptcy Ct. could properly find that state court’s order was essentially domestic support obligation that was exempt from discharge in bankruptcy under 11 USC sections 1328(c)(2) and 523(a), where clear intent of state court order was to compensate ex-wife for incurring additional attorney fees as result of debtor’s conduct and to ensure that debtor’s children had adequate financial support. Ct. rejected debtor’s argument that instant debt was dischargeable because state court order was meant to merely punish him, and debtor otherwise waived potential winning argument that instant debt was dischargeable because he was directed to pay $25,000 debt directly to ex-wife’s attorney as opposed to ex-wife.