Alimony Penalty Dischargeable in Bankruptcy, Rules 1st Circuit

Summary


A Chapter 13 debtor could obtain a bankruptcy discharge of late payment penalties assessed pursuant to the alimony provisions of his divorce decree, the 1st Circuit has ruled in affirming judgment.

The debtor's former wife filed a proof of claim for $82,000 in his bankruptcy case. The claim was for $50 per day penalties that had accrued under the terms of the parties' divorce decree because the debtor had been consistently late in his alimony payments.

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Alimony Penalty Dischargeable in Bankruptcy, Rules 1st Circuit

The wife argued that her claim was for ...

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