Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-canb-4_10-ap-04137/USCOURTS-canb-4_10-ap-04137-0/pdf.json

Parties Involved:
Raylene Huete
Plaintiff
David Alonzo Huete
Defendant

Document Text:

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF CALIFORNIA

1300 Clay Street (2d fl.) 

 Oakland, CA. 94612

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Memorandum

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF CALIFORNIA

In re Case No. 10-42426 EDJ

 Chapter 7

DAVID HUETE,

 Debtor. /

RAYLENE HUETE, Adv. No. 10-04137 AJ

 Plaintiff,

vs.

DAVID HUETE,

 Defendant. /

MEMORANDUM

The above-captioned adversary proceeding came on for status

conference July 26, 2010. Both parties appeared, without counsel. 

Plaintiff Raylene Huete (“Raylene”) contends that David Huete, the

above-named debtor (“David”), owes her a property equalization

payment by virtue of certain orders entered by the Contra Costa

Superior Court in Case No. D01-03339 entitled Huete v. Huete. By

this adversary proceeding, she requests this court to liquidate the

Signed: July 27, 2010

________________________________________

EDWARD D. JELLEN

U.S. Bankruptcy Judge

________________________________________

Entered on Docket 

July 27, 2010

GLORIA L. FRANKLIN, CLERK 

U.S BANKRUPTCY COURT 

NORTHERN DISTRICT OF CALIFORNIA

Case: 10-04137 Doc# 10 Filed: 07/27/10 Entered: 07/27/10 16:46:23 Page 1 of 4 
UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF CALIFORNIA

1300 Clay Street (2d fl.) 

 Oakland, CA. 94612

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1Bankruptcy Code § 523(a)(15), in effect for bankruptcy

cases filed on or after October 17, 2005, provides:

(a) A discharge under section 727 . . . of this title

does not discharge an individual debtor from any debt--

. . . 

(15) to a spouse, former spouse, or child of the debtor

and not of the kind described in paragraph (5) that is

incurred by the debtor in the course of a divorce or

separation or in connection with a separation

agreement, divorce decree or other order of a court of

record, or a determination made in accordance with

State or territorial law by a governmental unit.

Memorandum 2

amount of such property equalization payment, and to determine that

the resulting debt is nondischargeable herein pursuant to Bankruptcy

Code § 523(a)(15).1

 

David contends that property settlement debts of the type that

are at issue herein are dischargeable, citing Marriage of Lynn, 101

Cal. App. 4th 120, 123 Cal. Rptr. 2d 611 (2002).

The language in Lynn upon which David relies is outdated. 

Since the enactment of the Bankruptcy Abuse Prevention and Consumer

Protection Act of 2005 (“BAPCPA”), effective October 17, 2005, most

non-support debts (as well as most support debts, see Bankruptcy

Code § 523(a)(5)) incurred in connection with a divorce proceeding

are not dischargeable in a bankruptcy case. Bankruptcy Code 

§ 523(a)(15). 

As to the appropriate forum, since the enactment of BAPCPA, the

bankruptcy court and any non-bankruptcy forum of competent

jurisdiction exercize concurrent jurisdiction as to actions grounded

Case: 10-04137 Doc# 10 Filed: 07/27/10 Entered: 07/27/10 16:46:23 Page 2 of 4 
UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF CALIFORNIA

1300 Clay Street (2d fl.) 

 Oakland, CA. 94612

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Memorandum 3

on Bankruptcy Code § 523(a)(15). Bankruptcy Code § 523(c); 28

U.S.C. § 1334(b).

Here, the court believes that this matter is best heard by the

Contra Costa Superior Court, State of California. This is so

because state law issues predominate. Also, the nature and extent

of prior rulings by the Contra Costa Superior Court may be at issue. 

The outcome will not impact the administration of David’s bankruptcy

estate, nor will such administration be delayed by this court’s

deferral to the Superior Court. See In re Tucson Estates, Inc., 912

F.2d 1162 (9th Cir. 1990).

Accordingly, this court will issue its order abstaining from

hearing this adversary proceeding, and vacating the automatic stay

to permit Raylene to seek relief in the Superior Court.

*** END OF MEMORANDUM ***

Case: 10-04137 Doc# 10 Filed: 07/27/10 Entered: 07/27/10 16:46:23 Page 3 of 4 
UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF CALIFORNIA

1300 Clay Street (2d fl.) 

 Oakland, CA. 94612

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Memorandum 4

COURT SERVICE LIST

Raylene Huete

32312 Deborah Dr.

Union City, CA 94587 

David Alonzo Huete

409 13th St.10th Floor

Oakland, CA 94612 

Case: 10-04137 Doc# 10 Filed: 07/27/10 Entered: 07/27/10 16:46:23 Page 4 of 4