Contempt actions for debts
Among the exceptions to debts allowed to be relieved through a bankruptcy filing are student loans, debts owed to the government and family court-ordered payments. However, a recent Colorado state ruling may allow more leniency for the latter. According to the Colorado Supreme Court in Weis v. Weis, No. 09SA216, June 7, 2010 (Lawyers USA No. 993-1977), a contempt action against a spouse who had agreed to pay a share of joint debts did not qualify as an exception to the automatic stay provisions of the Bankruptcy Code as either a criminal action or an action to collect a “domestic support obligation.” The debtor in this case had in fact filed a Chapter 13 petition which would have required her to enter into a repayment plan for her debts owed, but the court refused to find an exception to the automatic stay as there were not funds outside of the bankruptcy estate available to cover these amounts.
