CRP Holdings A-1, LLC v. O'Sullivan, No. 15-6020 (8th Cir. 2016)
Annotate this CaseCreditor appealed the bankruptcy court's order granting debtor's motion to avoid its judgment lien. Creditor concedes that its judgment lien attached to the residence, but argues that its judgment lien did not fix upon debtor’s tenant by the entirety property interest in the residence, because debtor did not have an interest to which its judgment lien could fix. The panel concluded that, under Missouri law, even if it conceded that the residence was not subject to Creditor’s lien and that the lien was therefore unenforceable, the panel would still find that an unenforceable judgment lien arose, so that it is possible for debtor to avoid it under 11 U.S.C. 522(f). Further, even if the docketing and registration of Creditor’s judgment lien did not attach an enforceable judgment lien to the residence, at a minimum, the judgment lien creates a cloud on the title to the residence.
Court Description: Kressel, Author, with Schermer and Nail, Bankruptcy Judges] Bankruptcy Appellate Panel. The bankruptcy court did not err in finding CRP's judgment lien impaired debtor's exemptions because under Missouri law debtor had an interest in his residence at the time CRP's judgment lien attached, and the lien fixed on his residence and cast a cloud on his title, thereby impairing debtor's exemption in his residence. [ January 15, 2016
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