NJSBA Family Law Section

 View Only
  • 1.  Discharge of court-ordered counsel fees in bankruptcy

    Posted 09-26-2011 09:35 AM
    This message has been cross posted to the following Discussions: GLBT Rights Section and Family Law .
    -------------------------------------------
    Before I start calling bankruptcy attorneys, does anyone know any tricks for thwarting a litigant's plans to discharge court-ordered counsel fees in bankruptcy?

    I have a case that has had more than 10 post-judgment motions. The wife continues paying her attorney to file motion after motion (he is strangely absent on her bankruptcy petition). However, she refuses to follow custody orders and has been ordered to pay around $6,000 in counsel fees to my office for violation of litigant's rights. Naturally, she has not paid one dime of those fees. My client has already paid his bills to me, but I want to ensure this woman pays up given her total disregard for court orders. She has listed the counsel fees on her bankruptcy petition, with my firm as the creditor.

    Anyone have any enlightening thoughts or been through this before?

    Any thoughts would be appreciated.

    -------------------------------------------
    John Nachlinger Esq.
    Metuchen NJ
    (732)603-8585

    -------------------------------------------


  • 2.  RE:Discharge of court-ordered counsel fees in bankruptcy

    Posted 09-26-2011 10:11 AM

    Take as look at Winegarden v. Winegarden, 316 N.J.Super. 52, 62, 719 A.2d 678, 683 (App.Div.1998) (counsel fees in nature of support and nondischargeable).  Also Pelusio v. Pelusio, 130 N.J.Super. 538, 328 A.2d 10 (App.Div.1974) (Attorney's fees are "necessaries" and nondischargeable) and Cashin v. Cashin, 186 N.J.Super. 183, 451 A.2d 1331 (Ch.Div.1982) (attorney's fees are support) and Inserra v. Inserra, 260 N.J.Super. 71, 615 A.2d 277 (bankruptcy purposes, attorney fees are in nature of alimonFiy).  Whether or not the fees can be discharged is ultimately a question for the federal bankruptcy court.  See also Bankruptcy Rule 4007 "A debtor or any creditor may file a complaint to obtain a determination of the dischargeability of any debt".

    Good luck.
    -------------------------------------------
    Robert Savage Esq
    Washington NJ
    (866)728-5292

    -------------------------------------------








  • 3.  RE:Discharge of court-ordered counsel fees in bankruptcy

    Posted 09-26-2011 12:12 PM
    I can't think of the name of the case, but there is one which holds that the fees belong to your client, not your firm, even if the court orders said the fees were payable to you. Your client's likely a more sympathetic plaintiff in the bankruptcy case. Just about everybody's more sympathetic than we are . . .

    -------------------------------------------
    Vincent Robertson Esq.
    Moorestown NJ
    (856)235-4277

    -------------------------------------------








  • 4.  RE:Discharge of court-ordered counsel fees in bankruptcy

    Posted 09-26-2011 12:47 PM

    Then as Nina says 'like support', shouldn't the attorney file an adversary motion on his behalf and that of his client?  I'm assuming the Court's Order that the 'bankrupt' pay the attorney's fees for the attorney's client, effectively reduces the amount the client has to pay the attorney. 
    -------------------------------------------
    Marianne Auriemma Esq.
    900 Route 9 North
    Woodbridge NJ
    (732)602-7795

    -------------------------------------------








  • 5.  RE:Discharge of court-ordered counsel fees in bankruptcy

    Posted 09-26-2011 03:31 PM

    There have been a long line of bankrutpcy cases that have held that attonrey fees in a family court case are in the nature of support and not dischargable. If you do a Fastcase search I am sure they will come up.

    Gerri
    -------------------------------------------
    Geraldene Sherr Duswalt, Esq.
    1812 Front Street
    Scotch Plains, New Jersey 07076
    (908) 322-5160
    [email protected]
    www.duswaltlawfirm.com
    -------------------------------------------








  • 6.  RE:Discharge of court-ordered counsel fees in bankruptcy

    Posted 09-26-2011 05:23 PM
    Try these for starters:

    DiGiacomo v. DiGiacomo, 256 N.J.Super. 404 (App. Div. 1992)

    Tosti v. Tosti (In re Tosti), 62 B.R. 131 (Bankr. D.N.J. 1986)

    -------------------------------------------
    Jordan Stern Esq.
    Law Office of Jordan A. Stern
    Chatham NJ
    (973)632-3526
    www.njsternlaw.com

    "If there's one thing you should take from this class, it's this: Read the statute to the very end--to the very last period." -Prof. George C. Thomas III, Rutgers-Newark School of Law
    -------------------------------------------








  • 7.  RE:Discharge of court-ordered counsel fees in bankruptcy

    Posted 09-27-2011 10:29 AM
    Thank you everyone for your comments. There doesn't seem to be a single answer to this issue, but I think I have a plan of attack. Thanks again!

    -------------------------------------------
    John Nachlinger Esq.
    Metuchen NJ
    (732)603-8585

    -------------------------------------------








  • 8.  RE:Discharge of court-ordered counsel fees in bankruptcy

    Posted 09-26-2011 04:50 PM

    I don't handle bankruptcies but will put my 2 cents in anyway. 
    I believe that debts arising from the intentional acts of the bankrupt cannot be discharged in bankruptcy (i.e. if you bash someone's head in with a hammer and the victim gets a judgment against you, you cannot discharge that judgment in the bankruptcy proceeding). 
    If wife has been sanctioned by the family court for violating a court order with an award of counsel fees, you can probably argue that the debt (counsel fees) arose from her intentional acts and thus is not dischargeable in bankruptcy.  
    -------------------------------------------
    Lisa M. Radell, Esq.
    207 South Main Street
    Cape May Court House, NJ 08210
    Phone (609) 465-9910
    Fax (609) 465-9920
    E-Mail [email protected]
    -------------------------------------------