Jacqueline Allen, Creditor/plaintiff in Bankruptcy Court v. Christopher Lynn Allen, Debtor/defendant in Bankruptcy Court

Jacqueline Allen sought relief from the automatic stay imposed by her former husband’s bankruptcy filing so that she could pursue in California state court a modification of spousal support and an appeal of a dissolution judgment. The bankruptcy court denied relief on the ground that Jacqueline failed to show adequate cause pursuant to 11 U.S.C. § 362 (d)(1). The district court affirmed. The question we now consider is whether Jacqueline’s efforts with respect to her dissolution proceedings should have been excepted from the automatic stay under 11 U.S.C. § 362 (b)(2)(A)(ii), which exempts “the commencement or continuation of an action or proceeding for ... the establishment or modification of an order for alimony, maintenance, or support.” We hold that, to the extent they relate to spousal support, the dissolution proceedings fall within this exemption. Consequently, we reverse the order denying relief from the automatic stay and remand for further proceedings.

Background

Underlying this bankruptcy appeal is a marriage gone awry. Jacqueline and Christopher Allen were married for seventeen years before their divorce in December 1998. Christopher worked as an emergency room…