Popick Obtains Decision Enforcing Spousal Support In Bankruptcy

US Bankruptcy Judge for the District of Vermont, Hon. Colleen Brown, ruled that LS&W client Georgia Burke could pursue her ex-husband for his obligation to assume a marital debt under their divorce agreement, notwithstanding his attempt to discharge that debt in his Chapter 13 bankruptcy. The Court ruled that the ex-husband’s obligation was a non-dischargeable spousal support obligation that could be collected against the his exempt pension plan. The issue of whether marital debts could be enforced as non-dischargeable spousal support in bankruptcy had previously been unsettled in the District of Vermont.

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The court’s decision is particularly relevant to parties contemplating divorce where one party may be considering a post-divorce bankruptcy filing. The Court’s decision approves language from the parties’ marital settlement agreement that makes the debt enforceable even in the event of bankruptcy.

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Ms. Burke was represented by Hobart Popick, of LS&W’s Burlington office. Mr. Popick practices civil litigation, with particular focus on family law, creditor’s rights in bankruptcy, and employment law.

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A copy of the decision can be found on the Bankruptcy Court’s website under “Court Decisions” at http://www.vtb.uscourts.gov/.