CRP Holdings A-1, LLC v. O`Sullivan (In re O`Sullivan)
- Summarized by Samuel Henninger , Waller Lansden Dortch & Davis, LLP
- 4 years 1 month ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- No. 17-3226, 2019 WL 406685 (8th Circuit, Feb 01,2019) Published
- Tag(s):
-
- Ruling:
- Creditor's recording of a notice of foreign judgment created a cloud on debtor's title on his exempt homestead. Bankruptcy court could apply section 522(f) to clear the cloud on the title.
- Procedural context:
- Debtor moved to avoid CRP's purported judicial lien, asserting that the lien impaired his claimed homestead exemption. Bankruptcy court granted motion. BAP affirmed. 8th Circuit remanded to determine whether CRP had a judicial lien on the property. On remand, bankruptcy court held that CRP possessed an unenforceable judicial lien against debtor's property and granted debtor's motion to avoid the lien. BAP affirmed.
- Facts:
- Debtor and wife owned residence as tenants by the entirety. CRP obtained $765K default judgment against debtor. Judgment did not include wife. CRP attempted to obtain a judicial lien on the property by filing a notice of foreign judgment. Later, debtor filed for chapter 7, but his wife did not join.
- Judge(s):
- Smith, Melloy, Stras
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