LaMonda v. Harder, No. 23-6006 (8th Cir. 2024)
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The United States Bankruptcy Appellate Panel for the Eighth Circuit reversed and remanded a decision from the bankruptcy court in a case involving unpaid child support. The debtor, Justin Gary LaMonda, petitioned for bankruptcy relief under Chapter 7. He was married to Natalia LaMonda, and after they divorced, he was ordered to pay child support. The case has been converted multiple times, from Chapter 7 to Chapter 13, and then back to Chapter 7 again. Natalia LaMonda filed an unsecured priority claim for unpaid child support, which the Chapter 7 Trustee objected to. The bankruptcy court sustained the Trustee's objection, leading to this appeal.
The Appellate Panel found that Natalia LaMonda's claim for unpaid child support arose after the order for relief and before the case was converted under section 1307 of the Bankruptcy Code. According to the Panel, her claim should therefore be treated as if it arose before the petition date, making it eligible for treatment as a priority unsecured claim. Thus, the Panel held that the bankruptcy court erred by disallowing Natalia LaMonda's claim based on the Trustee's objection. The case was reversed and remanded for further proceedings consistent with this opinion.
Court Description: [Hastings, Author, with Ridgway and Surrratt-States, Bankruptcy Judges] Bankruptcy Appellate Panel. Under section 348(d), LaMonda's claim for unpaid child support arose after the order for relief and before this case was converted under section 1307; consequently, her claim must be treated as if it arose immediately before the petition date, and the bankruptcy court erred as a matter of law in concluding otherwise and in sustaining the Trustee's objection to the claim; Reversed and remanded for further proceedings. [ February 02, 2024 ]
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