Case Summary:
Green County filed a complaint against the Debtor seeking a determination of nondischargeability of a debt pursuant to 11 U.S.C. 523(a)(18) or 11 U.S.C. 523(a)(5). The debt arose when a guardian ad litem was appointed to represent the best interests of the debtors child in a juvenile action in Green County Circuit Court. Green County did not meet its burden to prove nondishcargeability under 11 U.S.C. 523(a)(5). Green County provided no details regarding the underlying juvenile action, however, guardian ad litem bills seemed to indicate that the fees arose from a Child in Need of Protection or Services (CHIPS) proceeding. Although the debt was incurred for the welfare of the child, the obligation to the County is not a nondischargeable debt for the purpose of 523(a)(5) if it arose under Wis. Stat. § 48.235. Wis. Stat. § 48.235 allows the County to seek reimbursement from parents of amounts paid by the County to a guardian ad litem. If the debt arose under 48.235, it is a debt to the County and does not meet the requirement under 523(a)(5) that the nondischargeable debt be owed to a spouse, former spouse, or child. Where the Debtors child is not seeking support, but a governmental entity is trying to enforce its rights against a parent under a state statute for reimbursement, 523(a)(5) is not implicated. Green County did not prove nondischargeability under 523(a)(18) either because it did not allege or argue that the debt is enforceable under Part D of Title IV of the Social Security Act. Exceptions to discharge are construed strictly against a creditor and liberally in the debtor's favor, Green County failed to meet its burden of proof.

Statute/Rule References:
11 U.S.C. § 523(a)(5) -- Nondischargeability - Divorce Decrees
11 U.S.C. § 523(a)(18)
42 U.S.C. § 651-669
Wis. Stat. § 48.235 -- Guardian ad Litem

Key Terms:
Non-Dischargeable Debt