Is a debt arising from an extramarital affair dischargeable??

In a recent case (In re Minick 18-50146 -https://scholar.google.com/scholar_case?case=7853546473909633817&hl=en&lr=lang_en&as_sdt=2003&as_vis=1&oi=scholaralrt), this was discussed.

The question arose can the court dismiss a case for bad faith when only one creditor was listed, and that creditor was a Plaintiff in a state course case for an “alienation of affection” type of case.

The Debtor had an affair with a married woman, the relationship ended. The spurned husband filed a state court action complaining of “criminal conversion” (North Carolina) for sexual intercourse between the Debtor and plaintiff’s spouse during their marriage.

Debtor/Defendant said heck with this and filed bankruptcy.

The husband wanted the case dismissed under 707(a) for cause.  So… is a debt incurred for having extramarital affair cause for dismissing a bankruptcy.

The Court uses 11 factors to determine bad faith. The husband argued 2 such factors applied: (a) debtor attempt to evade a single creditor, and (b) the debt was incurred by malicious and unethical conduct.

• The court found that basically none of these factors applied, the debtor did not reduce his creditors to a single creditor prior to filing.
• The unliquidated debt arises from an extramarital affair. The Bankruptcy Code does not disqualify a debtor from seeking bankruptcy even if the debtor’s largest debt arose from wrongful or improper conduct, but instead the Code allows the particular debt to be excepted from a bankruptcy discharge depending on the nature and type of wrongful conduct. See 11 U.S.C. §§ 523, 1141(d)(2), 1328(c)(2).

The circumstances in this case do not show egregious behavior, the type demonstrating abuse of the provisions, purpose, or spirit of bankruptcy law.

Marvin

Law Office Marvin Mann