UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF KENTUCKY
MARK CASPAR WALLER CASE NO. 04-22770
MEMORANDUM OPINION AND ORDER
This matter having come before the court upon the objection to claim of Angela Waller (claim # 9-1) filed herein by the Chapter 7 Trustee (DOC 50), and the matter having been heard by the court on September 11, 2007, and it appearing to the court that Angela Waller has amended her claim (claim # 9-2), and a further objection to that claim filed herein by creditor Farm Credit Services (DOC 60), and the matter having been submitted to the court, the court issues this Memorandum Opinion and Order.
This matter is submitted to the court on the issue of whether Angela Waller is entitled to claim the property division/maintenance portion of her domestic/dissolution action.
Claim # 9-2 is an unsecured priority claim for a domestic support obligation under 11 U.S.C. § 507(a)(1) based on an attached divorce court order of September 10, 2007. That order states that Angela Waller shall be awarded maintenance in a lump sum from Mark Waller pursuant to KRS 403.200, as Angela Waller lacks sufficient property, including marital property apportioned to her, to provide for her reasonable needs and is unable to support herself through appropriate employment, the amount of which shall be equal to and paid from the remaining assets to be distributed by the United States Bankruptcy Trustee to creditors after the deduction of taxes, accountant fees and trustee fees and/or at Angela Waller’s priority level, by virtue of Mark Waller’s bankruptcy action.
Farm Credit Services has objected to claim # 9-2, and argues that the claim is an attempt to end-run the distribution scheme of Chapter 7 of the Bankruptcy Code and deny the other numerous unsecured creditors their pro-rata distribution of funds.
The court agrees with the argument of Farm Credit Services. 11 U.S.C. 507 § (a)(1) provides a first priority for allowed unsecured claims for domestic support obligations as of the date of the filing of the petition. This bankruptcy was filed on November 1, 2004. The divorce court order was not entered until September 10, 2007. There is no evidence before this court that any maintenance was awarded to Angela Waller before the entry of the divorce court order on September 10, 2007. So the court must conclude that there is no evidence of an unsecured claim for domestic support obligations as of the date of the filing of the petition.
For the reasons set out above, the court will and hereby does, SUSTAIN, the objections filed herein by the Chapter 7 Trustee and creditor Farm Credit Services to the claim of Angela Waller.
Lori A. Schlarman, Esq.
Karen McCracken, Esq.
Matt Sanning, Esq.
C.J. Victor, Esq.
Kathryn Ryan, Esq.