Bankruptcy Judges take giant step for rights of same-sex couples
In February, President Obama and attorney general, Eric Holder, announced that they considered Defense of Marriage Act, DOMA, unconstitutional and would no longer defend it in court. While the law is still on the books, the Justice Department will no longer defend the provisions of Section 3 and will leave that up to lawyers for Congress. DOMA refers to the exclusive federal recognition of marriages between men and women. In a recent turn of events, Bankruptcy Judges around the country are making landmark decisions regarding the rights of same sex couples in Bankruptcy Court.
In response to the bankruptcy case of legally married same-sex couple Gene Douglas Balas and Carlos A. Morales, 20 Bankruptcy Judges from the U.S. Bankruptcy Court in Los Angeles, signed a declaration that proclaimed Defense Of Marriage Act, to be in violation of the U.S. Constitution’s Fifth Amendment.
Judge Thomas B. Donovan of the United States Bankruptcy Court for the Central District of California wrote the following: “In this court’s judgment, no legally married couple should be entitled to fewer bankruptcy rights than any other legally married couple".
Gene Balas, and Carlos Morales, were legally married in August 2008 during the brief legal six-months period California allowed same-sex marriages.
Gene and Carlos are not alone in facing financial difficulties as a couple. Due to the tough economic times, many couples around the country are seeking bankruptcy for a fresh new start. Gene and Carlos cited enormous medical bills and the loss of Balas' job in 2009 during the financial crisis as primary reasons the couple filed bankruptcy jointly in February 2011.
The same-sex couple bankruptcy rights are heating up on the legal stage around the country. The Leonard Link Blog highlighted a few noteworthy cases in a recent post. U.S. Bankruptcy Judge Cecelia G. Morris, Southern District of New York, in Somers, No. 10-38296, 2011, found it unnecessary to rule on the constitutionality of DOMA Section 3 because the trustee's motion did not address any of the grounds articulated in the bankruptcy statute for granting such a motion. Granting the motion, would require refiling individual petitions by the debtors and re-doing everything in the case.
Another recent same-sex Bankruptcy case, was Ziviello-Howell, Case No. 11-22706 (E.D.Cal.). This case was presided by U.S. Bankruptcy Judge Michael S. McManus, Eastern District of California. Judge Mcmanus followed Judge Morris's rule that the trustee's motion to dismiss, came too late in the case and refrained from ruling on the constitutionality of DOMA.
As a Florida Bankruptcy Law Firm, we applaud the new stance on Defense of Marriage Act and the bankruptcy code. It is long overdue. If a couple is a legally married, same-sex couple or heterosexual couple, they deserve the same legal rights under Federal bankruptcy protection laws.
Click on the following links to read more on
In Bankruptcy Court, a giant step for same-sex marriage - LA Times
20 Bankruptcy Court Judges Join to Reject DOMA - Start Fresh Today - The Bankruptcy Lawyers Blog
20 Bankruptcy Judges Issue Joint Opinion Holding DOMA Section 3 Unconstitutional as Applied to Bankruptcy Cases - New York Law School - Leonard Link
A California Bankruptcy Court Rejects U.S. Law Barring Same-Sex Marriage- NY Times
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