In re Jones (17-51113)

Debtor objects to the priority claim filed by his ex-wife, arguing that the obligation underlying the claim is a property settlement obligation, which is not afforded priority status under the Bankruptcy Code, rather than a domestic support obligation.  In support of his position, Debtor asserted, primarily, that the Settlement Agreement and Divorce Decree specifically state that the obligation “shall not be considered alimony.”  The Court overrules the Debtors’ objection, ruling that the obligation was in the nature of support despite the language to the contrary in the Settlement Agreement.

Wednesday, January 31, 2018