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In re Jacobs

United States Bankruptcy Court, M.D. Florida
Aug 7, 1980
No. 78-908 T (Bankr. M.D. Fla. Aug. 7, 1980)

Opinion

No. 78-908 T

August 7, 1980


Former Bankruptcy Act — Provable Debts — Discharge of Debts — Court Costs and Fees — Prepetition Obligation


A bankrupt's obligation to pay the attorney fees and court costs set forth in a stipulation which was incorporated into a prepetition divorce decree was a non-provable and, therefore, nondischargeable debt under Section 63 of the Bankruptcy Act because the debt was not founded upon a liability that was due and owing at the time the petition was filed. See Sec. 63a(1) at ¶ 2612.

[Digest of Opinion]

A final judgment was entered dissolving the marriage of the bankrupt and his wife, the creditor, providing for the retention of jurisdiction by the state court if a deferred hearing was necessary to determine liability for joint and individual debts and the wife's attorney fees and costs.

Two months later, the bankrupt filed a voluntary petition in bankruptcy. During the course of the proceedings, the counsel for the parties entered into a stipulation which provided that the bankrupt would pay $250.00 towards the wife's attorney fees together with her court costs. On the same date, the state court entered an order ratifying, confirming and approving the stipulation "as is fully set forth, in the final judgment of dissolution entered" two months before.

The wife filed a complaint seeking a determination by this court that the obligation of the bankrupt to pay attorney fees and court costs as set forth in the stipulation was a non-provable and, therefore, non-dischargeable debt or otherwise nondischargeable by virtue of Section 17(a)7 of the Bankruptcy Act.

It was the bankrupt's contention that the obligation was not binding since the counsel who represented him in the divorce proceedings was not authorized. Additionally, the bankrupt contended that the stipulation did not create a post-petition non-provable debt in that the order expressly provided that the stipulation was approved and incorporated "as if fully set forth in the final judgment of dissolution."

The court first determined that the stipulation was valid and binding and that counsel for the bankrupt was authorized to enter into the stipulation on behalf of the bankrupt. Secondly, the count was satisfied that the stipulation was a non-provable debt and therefore, not affected by the general bankruptcy discharge inasmuch as it was a post-petition obligation. The fact that the court's incorporated the stipulation into the final judgment was immaterial since the debt was not founded upon a liability that was due and owing, contingent or otherwise, at the time of the filing of the petition.


Summaries of

In re Jacobs

United States Bankruptcy Court, M.D. Florida
Aug 7, 1980
No. 78-908 T (Bankr. M.D. Fla. Aug. 7, 1980)
Case details for

In re Jacobs

Case Details

Full title:IN RE JACOBS

Court:United States Bankruptcy Court, M.D. Florida

Date published: Aug 7, 1980

Citations

No. 78-908 T (Bankr. M.D. Fla. Aug. 7, 1980)