In re: Casey Drew O'Sullivan

Case Type:
Case Status:
17-6012 (8th Circuit, Sep 22,2017) Published
Perhaps finally resolving an issue that has yo-yoed from the bankruptcy court to the Eighth Circuit, and cutting through the metaphysics of whether a judgment against only one spouse can become a judgment lien on a house owned by the entireties, the BAP affirmed the bankruptcy court's decision that: (1) a judgment entered against one spouse was an unenforceable judgment lien against the debtor's house, owned as a tenancy by the entireties; and (2) the judgment lien was avoidable under section 522(f)(1).
Procedural context:
The bankruptcy court originally granted the debtor's 522(f)(1) motion to avoid a judgment lien. The Eighth Circuit Court of Appeals reversed and remanded, directing the bankruptcy court to determine whether the judgment creditor had a judicial lien. The bankruptcy court then ruled that the judgment creditor creditor had a judicial lien that was avoidable under section 522(f)(1). The judgment creditor appealed.
CRP Holdings A-1, LLC, sued the debtor in state court and obtained a default judgment. The judgment creditor recorded the judgment in the county where the debtor and his spouse lived. The debtor then filed a Chapter 7 petition, and sought to avoid the recording of the judgment under section 522(f)(1).
SCHERMER, NAIL, SANBERG, Bankruptcy Judges

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