Case Conclusion Date: 10.01.2012
Practice Area: Chapter 13 Bankruptcy
Outcome: Objection overruled. The Court criticized controlling Ninth Circuit rule and urged reconsideration and modification to avoid unjust application based on the facts of this case. Appeal is pending before the Ninth Circuit Bankruptcy Appellate Panel.
Description: Chapter 13 debtor objected to allowance of former spouse's claim as a disguised domestic support obligation, where the former spouse had remarried shortly after divorce and yet was collecting a 17-year stream of non-modifiable payments totaling $306,000 based on combined settlement of both divorce issues and a separate $10Million personal injury suit brought by the former spouse for spreading herpes-simplex virus.