No. BK-79-1418United States Bankruptcy Court, W.D. Oklahoma
June 2, 1980
Former Bankruptcy Act — Discharge of Debt — Alimony — Property Settlement
FLETCHER, Bankruptcy Judge
A bankrupt’s obligation to pay all outstanding debts pursuant to a divorce decree, may be dischargeable in bankruptcy under Section 17(a)(7) of the Bankruptcy Act if the debts in question are not subject to termination upon the bankrupt’s death or remarriage. Such obligations would be in the nature of a property settlement and not alimony, maintenance or support. See Sec. 17(a)(7) at ¶ 2151 and Sec. 523(a)(5) at ¶ 9231.
[Digest of Opinion]
The creditor-wife contended that certain debts totalling $5,618.25, owed by the bankrupt-husband together with an accompanying $150.00 attorney fee were non-dischargeable in that they were in the nature of support-alimony within the meaning of Section 17(a)(7) of the Bankruptcy Act.
On March 21, 1978, the parties were granted a divorce by the District Court of Oklahoma, which provided, in pertinent part, for the payment of $174 per month for the “support and maintenance” of the minor children, and for the payment of all outstanding obligations. On June 20, 1979 the Oklahoma District Court issued a subsequent order finding the bankrupt to be in contempt and awarding the creditorwife $150.00 in attorney fees.
After reviewing the applicable case law, the court concluded that the state court, in its initial decree of March 21, did not make the debts in question subject to termination upon the bankrupt’s death or remarriage. Thus, such obligations were in the nature of a division of property, as distinguished from support-alimony, and dischargeable in bankruptcy. Moreover, such being a property settlement, the terms of the decree were not enforceable by way of contempt proceedings and the state court’s subsequent order of June 20, 1979.
Further, the court found that where a divorce decree is entered and neither alimony nor support is involved, the attorney fee is dischargeable in bankruptcy.