Missouri v. Spencer, No. 16-3182 (8th Cir. 2017)
Annotate this CaseAfter debtors filed for Chapter 13 bankruptcy, MDSS filed a proof of claim for an unsecured domestic support obligation (DSO) to pay spousal and child support arrears to one of the debtor's prior spouses. MDSS then filed an amended proof of claim in a higher amount and debtors objected. The Eighth Circuit held that the BAP correctly ruled that the disallowed portion of MDSS's DSO claim was not subject to the discharge injunction imposed when the bankruptcy court granted debtors a discharge. The court explained that that ruling eliminated the basis for the bankruptcy court's sanctions order. The court also held that the district court did not abuse its discretion by declining to address the bankruptcy court's contempt order sanctions. Finally, the court declined to render an advisory opinion on the additional issues raised in MDSS's cross-appeal.
Court Description: Loken, Author, with Wollman, Circuit Judge, and Nelson, District Judge] Civil case - Bankruptcy. The BAP correctly ruled that the disallowed portion of the Missouri Department of Social Services' domestic support obligation was not subject to the discharge injunction imposed when the bankruptcy court granted the debtors a discharge;that ruling eliminated the basis for the bankruptcy court's sanction order against the Department, and the BAP did not err in reversing the bankruptcy court's contempt order sanctions; the court would not issue an advisory opinion on the cross-appeal issue in which the Department asks the court to address the merits of whether the disallowed potion of its amended domestic support order claim survived the bankruptcy court's contrary ruling, its confirmation of the Chapter 13 plan and the debtors' discharge.
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