In re Wells
Citation | 8 BR 189 |
Decision Date | 14 January 1981 |
Docket Number | Bankruptcy No. 80 B 3068,Adv. No. 80 A 727. |
Parties | In re Ronald G. WELLS, Debtor. A.A. LEGAL CLINIC, LTD., Plaintiff, v. Ronald G. WELLS and Joseph Cohen, Interim Trustee, Defendants. |
Court | United States Bankruptcy Courts. Seventh Circuit. U.S. Bankruptcy Court — Northern District of Illinois |
Leroy A. Garr of Brundage & Garr, Ltd., Chicago, Ill., for plaintiff.
Lawrence M. Cooper of Ellis, Cooper & Resnick, Ltd., Chicago, Ill., for debtor.
This matter coming on to be heard upon the Complaint of A.A. LEGAL CLINIC, LTD., Creditor of the above-named Debtor, entitled Objection to Discharge but deemed, because of the allegations therein and pursuant to stipulation of counsel, a Complaint objecting to dischargeability of debt claimed to be nondischargeable pursuant to Clause Five of Section 523(a) of the Bankruptcy Code, and upon Debtor's Answer thereto, and
The Court having examined the pleadings filed in this matter, and having received and examined the evidence adduced and the Memorandum of Law submitted in support of Plaintiff's position, and having heard arguments of counsel and the Court being fully advised in the premises;
The Court Finds:
1. On November 5, 1979, a Judgment for Dissolution of Marriage was entered in the Circuit Court of Cook County, Illinois, County Department, Domestic Relations Division, Case No. 78 D 14704, entitled In re the Marriage of Marilyn Wells and Ronald Wells. The Judgment provided in pertinent part as follows:
The Judgment then recited that the parties had entered into an oral Separation Agreement, which was incorporated in the Judgment for Dissolution of Marriage.
Under the terms of the agreement, Marilyn Wells was awarded custody of the two minor children of the parties. The agreement further provided in pertinent part as follows:
Marilyn Wells was to assume the obligations owing under two charge accounts in her name, totalling approximately $2,000.00, and Debtor was to assume all other household obligations. The court ordered RONALD G. WELLS to convey by Quit Claim Deed all of his right, title, and interest in the marital home in full settlement of any claim for maintenance by the wife. In addition, each party was awarded the personal property then in his or her possession, and RONALD G. WELLS was ordered to maintain a certain life insurance policy naming the minor children as beneficiaries as well as insurance coverage for their extraordinary medical expenses.
The award which is the subject of this controversy is contained in the sixteenth and final paragraph of the Judgment:
"It is further agreed and ordered that Respondent shall pay as and toward additional fees to KENNETH J. BRUNDAGE of the A.A. LEGAL CLINIC, the sum of SEVEN HUNDRED FIFTY DOLLARS ($750.00) payable at the rate of FIFTY DOLLARS ($50.00) per month."
3. On March 13, 1980, RONALD G. WELLS filed his voluntary petition in bankruptcy herein.
The Court Concludes and Further Finds:
1. § 523(a) of the Bankruptcy Code provides in relevant part as follows:
2. In determining what constitutes alimony, maintenance, or support for purposes of dischargeability, this Court is not bound by the label which state courts place upon a decree, but must make the determination in accordance with a federal standard. See H.R.Rep.No.595, 95th Cong., 1st Sess. 364 (1977), reprinted in 1978 U.S. Code Cong. & Ad.News, pp. 5963, 6320. Under that standard, payments are considered alimony if they are actually in the nature of support for a former spouse. Nichols v. Hensler, 528 F.2d 304, 307 (7th Cir. 1976); see Audubon v. Schufeldt, 181 U.S. 575, 577, 21 S.Ct. 735, 736, 45 L.Ed. 1009 (1901). An examination of state law may be necessary to ascertain the incidents of an award, in order to determine whether it fits within this definition. See this Court's discussion in In re Pelikant, 5 B.R. 404 (Bkrtcy.N.D.Ill.1980).
3. An award of attorney's fees in Illinois divorce proceedings is specifically allowed by Ill.Rev.Stat. ch. 40, ¶ 508, which provides in relevant part as follows:
The controlling consideration in determining whether to grant attorney's fees under the above-quoted provision is the relative financial resources of the parties. See Held v. Held, 73 Ill.App.3d 561, 29 Ill.Dec. 612, 392 N.E.2d 169, 173 (1979); Gasperini v. Gasperini, 57 Ill.App.3d 578, 15 Ill.Dec. 230, 373 N.E.2d 576, 578 (1978); Lauzen v. Lauzen, 81 Ill.App.2d 472, 476, 225 N.E.2d 427 (1967). Consequently, an award of attorney's fees in an Illinois divorce proceeding is ordinarily in the...
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In re Papi, Bankruptcy Case No. 09 B 12379 (Bankr. N.D. Ill. 5/4/2010), Bankruptcy Case No. 09 B 12379.
...& MacDougall, S.C. v. Rodriguez (In re Rodriguez), 22 B.R. 309, 311 (Bankr. W.D. Wis. 1982); A. A. Legal Clinic, Ltd. v. Wells (In re Wells), 8 B.R. 189, 193-94 (Bankr. N.D. Ill. 1981); Bennett v. Knahe (In re Knahe), 8 B.R. 53, 56-57 (Bankr. S.D. Ind. 1981); Riehter v. Pelikant (In re Peli......
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