Riverbend Condo. Ass'n v. Green, No. 14-31117 (5th Cir. 2015)

Riverbend filed a Proof of Claim in the bankruptcy proceeding of debtor, owner of a condominium in Riverbend. Debtor filed a Motion to Avoid Riverbend's Lien on the grounds that after deducting the balance of the first mortgage and the Louisiana homestead exemption, there was only $8,000 left to which Riverbend's lien could attach. The bankruptcy court held that the privilege created by La. Rev. Stat. 9:1123.115(1) on a Louisiana condominium for all unpaid sums assessed by the condominium association against the condominium owner is a statutory lien (as distinguished from a security interest) and is therefore subject to bifurcation under 11 U.S.C. 1322(b)(2). Riverbend appealed the bankruptcy court's decision. The court affirmed the district court’s affirmance of the bankruptcy court’s order.