Case Has Nice Discussion On Nondischargeable/Dischargeable Fee Awards in Bankruptcy.
We have to give credit to Judge Yegan and his colleagues on the Second District, Division 6. They helped clarify an issue we have seen before as far as what type of family attorney’s fees awards in family law proceedings are nondischargeable or dischargeable in nature once a bankruptcy is at issue on behalf of the obligor.
In Marriage of Angell, Case No. B259073 (2d Dist., Div. 6 Oct. 27, 2015) (unpublished), husband argued that a $15,000 fees award to wife was nondischargeable under a Chapter 13 bankruptcy proceeding. The appellate court disagreed, indicating that the fees award followed the principal award and was nondischargeable. If the domestic support obligation is nondischargeable, then the fee award attendant thereto is nondischargeable. However, if the property division or settlement awards are unattached to domestic support obligations, then fees relating to these activities are dischargeable in nature. (In re Duncan, 122 B.R. 434, 435-436 (Bankr. N.D. Okla. 1991).) Nice clarification.
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