Single mothers who are owed child support would have as a personal property asset the amount still unpaid. There is no exemption available for such amounts, but they are only likely to be seized by a trustee who knows that a payment from the father would come soon after the time of the bankruptcy filing. If local child support enforcement authorities have been unable to secure these payments, it is unlikely a bankruptcy trustee would.
May 8th, 2011 by Administrator
While there is a federal law exemption for a personal bodily injury claim, a recent court decision specifies that this would not apply to an employment law claim, such as a wrongful termination claim (MCAD in Massachusetts). The $21,625 exemption amount is available for personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss. The court in In Re: Flattery, Francine Anne, et al. (Lawyers Weekly No. 04-035-11) (7 pages) (Hoffman, J.) (USBC) (Chapter 7 Case No. 10-43964-MSH) (March 23, 2011) found that this exemption was limited to payments on account of personal bodily injury, not applicable in employment law claims.
May 8th, 2011 by Administrator
A recent court decision, In Re: Johnson, Steven G. (Lawyers Weekly No. 04-034-11) (24 pages) (Feeney, J.) (USBC) (Chapter 7 Case No. 09-19214-JNF; Adv.P.No. 09-1387) (March 21, 2011), found that legal fees ordered to be paid to defend a complaint for modification of child support were a nondischargeable domestic support obligation. By awarding attorney fees against the complainant, the family court was finding that the complaint was without merit and therefore intended to penalize the complainant for his actions in filing the modification action. The family court award for defense of the Complaint for Modification and the four-day trial were “fair and reasonable under all of the circumstances.”
May 2nd, 2011 by Administrator
