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Divorce
In May 2013 a Wisconsin Court determined that Trentadue committed “significant over‐trial” and ordered that he contribute $25,000 toward his ex‐wife’s Attorneys' fees. Trentadue filed Bankruptcy. The Bankruptcy Court, District Court, and Court of Appeals agreed that the $25,000 was nondischargeable as a Domestic Support Orbligation.
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Domestic support obligations are exempt from discharge in Bankruptcy and entitled to priority payment in a plan of reorganization. The tricky part is determining just what constitutes a "domestic support obligation" entitled to special treatment. Would a spouse's Attorneys' Fees be entitled to special treatment? Interest on unpaid sums? Court sanctions for unpaid support?
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Lopsided divorce settlement shortly before a husband’s bankruptcy filing did not amount to a “fraudulent transfer” of assets: ex-wife keeps it all! Bankruptcy: In re Kimmell, 10 B 36039 Adversary: Trustee v. Kimmell, 10 A 2174 Opinion: Oct. 12, J. Barbosa (ND IL WD) Read the opinion here
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