Case Summary:
Debtor’s ex-spouse filed a claim for a domestic support obligation in Debtor’s Chapter 13 bankruptcy case. The subject of the claim was a home equity line of credit obligation that was secured by the ex-spouse/claimant’s homestead. The Debtor incurred the obligation under the line of credit, and although his ex-spouse was co-liable for it, the Debtor was ordered to pay the obligation under the parties’ divorce judgment. The Debtor failed make all payments due under the line of credit, and the lender filed a foreclosure against the ex-spouse’s homestead. She was forced to cure the deficiency herself, and thereafter obtained a contempt judgment against the Debtor for failing to pay the line of credit obligation. Her claim in the bankruptcy case was that the obligation which she paid was a domestic support obligation under the parties’ judgment of divorce. The Court agreed and held that her claim was nondischargeable. Principally, the divorce judgment specified that the obligation was a nondischargeable domestic support obligation and was assigned to the Debtor in lieu of maintenance. Testimony of the parties also supported the conclusion that the obligation was meant to be a domestic support obligation.

Statute/Rule References:
11 U.S.C. § 523(a)(5) -- Nondischargeability - Domestic Support Obligation
11 U.S.C. § 523(a)(15) -- Nondischargeability - Marital Obligations
11 U.S.C. § 1328(a)(2) -- Discharge
Fed. R. Bankr. P. 3001(f)

Key Terms:
Claims – Allowance
Domestic Support Obligation
Marital Settlement Agreement
Nondischargeable Debt