In Re Dale H. Visness, Debtor. Dale H. Visness v. Contra Costa County Contra Costa County District Attorney

OVERVIEW

Chapter 7 debtor Dale Visness initiated this adversary action during his bankruptcy proceeding to determine the dischargeability of his debt to Contra Costa County (“County”) for Aid for Families with Dependent Children (“AFDC”) disbursements made to his spouse for the support of their three minor children. The County appeals the district court judgment affirming the bankruptcy court’s determination that Mr. Visness’s debt was dischargeable under 11 U.S.C. § 523 (a)(5) and this court’s decision in In re Ramirez, 795 F.2d 1494 (9th Cir.1986), cert. denied, 481 U.S. 1003 , 107 S.Ct. 1624 , 95 L.Ed.2d 198 (1987). The County contends the Ramirez opinion is no longer binding precedent because California case law and congressional amendments to 11 U.S.C. § 523 (a)(5) undermine that decision. We disagree, and for the reasons set forth below, we confirm the continuing viability of Ramirez .

BACKGROUND

1. The Statutory Scheme

Ordinarily a debtor who successfully navigates the bankruptcy process is entitled to a discharge of all pre-petition debt. However, there are certain types of debt that Congress has declared to be nondischargeable. For example, a debt owed “to a spouse,…