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Bankruptcy Court Must Handle Ex-Wife's Bid for Future Support Payments

By Noeleen G. Walder

The attempt of the ex-wife of jailed attorney Marc S. Dreier to collect $7 million in support from his bankruptcy estate suffered a setback in October. Refusing to lift an automatic stay in the case, Southern District Chief Bankruptcy Judge Stuart M. Bernstein held that Elisa Dreier was not entitled to have a state judge decide whether Mr. Dreier's non-compliance with a separation agreement accelerated all of the support obligations payable under the pact.

Ms. Dreier had argued that her $7.1 million support claim should be paid before other creditors. The judge wrote in In re Marc S. Dreier, 09-10371, that “the disagreement over the acceleration issue is between the estate and Elisa, and not Elisa and Marc. At bottom, it concerns a question of priority under the Bankruptcy Code rather than a matrimonial contest between the Dreiers.” That means the question of how much support Ms. Dreier receives will be decided in bankruptcy court, where her claim will be weighed against that of other creditors.

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