In re Phegley
United States Bankruptcy Appellate Panel for the Eighth Circuit
443 B.R. 154 (2011)
A Missouri divorce decree ordered John Phegley (John) to pay his ex-wife Sheri Phegley (Sheri) $1,250 per month in maintenance for 48 months — terminable earlier on Sheri's remarriage or either party's death — to help her pursue a teaching certificate, since she couldn't support herself at the time of the divorce, plus $9,178.69 toward her attorney's fees. When John later filed for Chapter 13 bankruptcy, Sheri sought a ruling that both obligations were nondischargeable domestic support obligations; John argued they were instead a dischargeable division of marital property. The bankruptcy court found both obligations were nondischargeable support, and John appealed.
Whether payments made for the function and purpose of providing support to a former spouse are discharged in a Chapter 13 bankruptcy.