McNeil v. Drazin
499 B.R. 484
D. Maryland2013Background
- McNeil, acting pro se, appeals bankruptcy court orders classifying attorney’s fees in divorce litigation as domestic support obligations under 11 U.S.C. § 101(14A).
- Divorce final December 27, 2010; wife Sarah McNeil awarded alimony, child support, and equitable distribution; best-interest attorney Markuski represented the children.
- Drazin and Markuski contended their fee awards were domestic support obligations; McNeil challenged the characterization and priority of those fees.
- McNeil filed Chapter 13 bankruptcy in 2012; creditors Drazin, Markuski, and others filed proofs of claim for attorney’s fees.
- Bankruptcy court held Drazin’s and Markuski’s fee awards were domestic support obligations and nondischargeable; McNeil appealed both rulings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether fees to Drazin and Markuski are domestic support obligations | McNeil argued fees are not in the nature of support under §101(14A) after BAPCPA. | Drazin/Markuski contended fees follow the nature of the principal award and can be nondischargeable. | Yes; fees deemed domestic support obligations. |
| Whether the court properly determined priority without an adversary proceeding | McNeil asserted lack of adversary proceeding invalidated priority/rule 7001 determination. | Defendants argued due process was satisfied and error was harmless. | Harmless error; due process satisfied and priority affirmed. |
| Whether post-BAPCPA law limits support to payees who are spouses/children | McNeil claimed only debts recoverable by spouses/children qualify as support under §101(14A). | Authorities show debt’s nature controls; payee identity is not determinative. | Debt can be domestic support obligation even if not payable to spouse/child. |
Key Cases Cited
- Espinosa v. United States, 559 U.S. 260 (2010) (due process and adversary proceeding requirements in bankruptcy)
- In re Spong, 661 F.2d 6 (2d Cir. 1981) (attorney fees in domestic disputes treated as support when nature dictates)
- In re Dvorak, 986 F.2d 940 (5th Cir. 1993) (custody-related fees considered support under state-like analyses)
- In re Baker, 2012 WL 6186683 (Bankr.E.D.N.C. 2012) (post-BAPCPA treatment of attorney fees as domestic support obligations (database citation))