Audubon v. Shufeldt

Background

A retired Army surgeon who earned $175 a month filed for bankruptcy after owing several debts, including $800 in unpaid alimony to his former wife. A Maryland court had ordered him to pay $50 a month in alimony starting April 1, 1898. His former wife filed a claim in the bankruptcy proceedings for the arrears, then sought to withdraw it, but no court order removed her claim. The bankruptcy court in the District of Columbia granted him a general discharge that included the alimony arrears.

Reasoning

The Court addressed whether past alimony arrears are “provable” debts under the federal Bankrupt Act of 1898 and therefore dischargeable in bankruptcy. The Court explained that alimony arises from the marital duty to support, not from a contract or ordinary business transaction, and is normally enforced and adjusted by the family or equity court that issued the decree. Drawing on prior decisions, the Court concluded that alimony arrears are not the kind of fixed contractual debts the Act allows creditors to prove in bankruptcy, so a discharge cannot bar enforcement of those support obligations.

Real world impact

As a result, unpaid alimony that existed when the bankruptcy began cannot be wiped out by a bankruptcy discharge and can still be pursued in the court that handles family support. The Court reversed the lower court’s discharge insofar as it covered alimony arrears and sent the case back for proceedings consistent with this rule. This preserves a pathway for former spouses to collect ordered support despite a partner’s bankruptcy.