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512 B.R. 117
Bankr. D.N.H.
2014
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Background

  • Debtor Philip Gambale filed Chapter 13; former spouse Martine Laureyns filed a proof of claim for $36,463 based on Family Court orders from the couple’s divorce proceedings.
  • Claim components: $968 Social Security dependent benefit (conceded by debtor to be DSO), $34,400 (86 bi‑weekly $400 payments from Sept 2009–Mar 2013), $900 furnace cost, and $195 attorneys’ fees (withdrawn).
  • Stipulation (Sept 2009) required debtor to pay $400 bi‑weekly toward listed joint debts (mortgage, utilities, taxes, student loan, etc.); support issues were left unresolved in that stipulation.
  • Family Court’s final decree (May 2012, effective Mar 2013) ordered continuation/accumulation of the $400 bi‑weekly payments as part of “Division of Debt,” ordered $900 for furnace replacement, and $968 Social Security payment.
  • Bankruptcy question: whether the $900 furnace expense and the $34,400 in bi‑weekly payments are "domestic support obligations" (DSOs) under 11 U.S.C. §101(14A) and therefore priority nondischargeable claims under §507(a)(1).

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether $900 furnace payment is a DSO Laureyns: furnace payment was ordered to "maintain the home" and is in nature of support Gambale: characterized as property allocation / reimbursement of joint expense, not support Held: $900 is a DSO — the furnace was necessary household support and qualifies as priority under §101(14A)
Whether $34,400 (86 bi‑weekly $400 payments) is a DSO Laureyns: payments were described at times as "support/household expenses" and thus should be DSOs Gambale: payments were allocated to repayment of joint marital liabilities (property division), not support; debtor treated them as general unsecured Held: $34,400 is not a DSO — court finds payments were intended to address joint debt/property division and not "in the nature of support"

Key Cases Cited

  • Smith v. Pritchett, 586 F.3d 69 (1st Cir. 2009) (describing test for whether obligation is in nature of support under §101(14A) and §523(a)(5))
  • Werthen v. Werthen (In re Werthen), 329 F.3d 269 (1st Cir. 2003) (labels in state orders not controlling; inquiry focuses on whether obligation is in nature of support)
  • In re Efron, 495 B.R. 166 (Bankr. D. P.R. 2013) (collecting factors courts consider in DSO/support analysis)
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Case Details

Case Name: In re Gambale
Court Name: United States Bankruptcy Court, D. New Hampshire
Date Published: Jun 19, 2014
Citations: 512 B.R. 117; 2014 WL 2801313; 2014 BNH 7; 2014 Bankr. LEXIS 2694; No. 13-12782-BAH
Docket Number: No. 13-12782-BAH
Court Abbreviation: Bankr. D.N.H.
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    In re Gambale, 512 B.R. 117