591 F. App'x 443
6th Cir.2015Background
- Thomas and Clark divorced twice; mortgages on family home were allocated between them with child-support emphasis; Clark paid mortgages in the first decree, then Thomas paid half of the second mortgage in the second decree; Thomas failed to pay the second mortgage, leading to a sale and lien by Auto Now; Clark used sale proceeds to pay liens and mortgages, later seeking reimbursement; Clark obtained a judgment lien and mortgage debts against Thomas in the divorce action; Thomas and Rebecca filed Chapter 13 bankruptcy and claimed the debts were not nondischargeable as domestic-support obligations under 11 U.S.C. § 523(a)(5); bankruptcy court and BAP held the debts were in the nature of support and nondischargeable; issue on appeal is de novo review with clear-error standard for factual findings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the mortgage and lien debts are in the nature of support | Thomas contends no support obligation was created | Clark argues the structure and intent show support | Debts were in the nature of support |
| Whether the debts are excessive and dischargeable | Debt exceeds reasonable support | Debt amount reasonable given circumstances | Debts not excessive; nondischargeable |
| Whether the claim against Rebecca is properly construed | Rebecca not responsible | Claim seeks joint liability | Issue waived; court did not consider |
Key Cases Cited
- In re Fitzgerald, 9 F.3d 517 (6th Cir. 1993) (test for debt to be in the nature of support requires intent and actual support)
- In re Calhoun, 715 F.2d 1103 (6th Cir. 1983) (nature of support determined by intent and necessity; not label-based)
- In re Sorah, 163 F.3d 397 (6th Cir. 1998) (clear-error review of nondischargeable support determinations)
- In re United Producers, Inc., 526 F.3d 942 (6th Cir. 2008) (standard of review for bankruptcy court findings)