Tag: judgment lien

Bankr. E.D.N.C.: In re Hutton- Perfection of Judgment Lien against Motor Vehicle Following Levy


Mr. Hutton’s vehicles were seized in a levy by the Onslow County Sheriff’s Department in executing on a judgment obtained by Principis. After filing bankruptcy, Mr. Hutton sought turnover of the vehicle and asserted that the possessory lien held by Principii had not been perfected by recordation with the North Carolina DMV.

In narrowly construing and distinguishing several decisions from the North Carolina Supreme Court and Court of Appeals, the bankruptcy court rejected the argument by Principis that recordation is required to perfect a lien under N.C.G.S. § 20-58 only if there is a “security interest” as defined in N.C.G.S.… Read More

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Bankr.  E.D.N.C.: In re Powers- Avoidance of Judicial Lien in Jointly Owned Property


Mr.  Powers is the owner of a 50% undivided interest in his home, which has a total value of $292,000.00.   Bank of America holds a Deed of Trust against the entire property with a mortgage balance of $180,972.92.  Mr.  Powers also had three judgment liens against his interest, held, in order of seniority, by John Deere for $14,952.50, Evergreen for $4,617.48, and Farrar for $29,346.44.  Upon filing of a Chapter 13 bankruptcy, Mr.  Powers sought to avoid all three judgment liens as impairing his homestead exemption of $35,000.00.

11 U.S.C. §  522(f)(2)(A) sets forth the following methodology for determining the extent to which a judicial lien impairs an exemption:

[A] lien shall be considered to impair an exemption to the extent that the sum of –

(i) the lien;

(ii) all other liens on the property; and

(iii) the amount of the exemption that the debtor could claim if there were no liens on the property;

exceeds the value that the debtor’s interest in the property would have in the absence of any liens.… Read More

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Bankr. E.D.N.C.: Alexander- Avoidance of Judgment Lien against Debtor and Non-Debtor Spouse in Tenants by the Entireties Property


Medical Creditor obtained a judgment against the Debtor and Non-Filing Spouse, with such lien attaching to the property that the Debtor and the Non-filing Spouse own as Tenants by the Entireties. After filing Chapter 7, the Debtor sought to avoid, pursuant to 11 U.S.C. § 522(f), the judgment lien.

The Bankruptcy Court first restated that property owned as Tenants by the Entireties “is a form of ownership where the husband and wife are each ‘deemed to be seized of the entire estate, with neither spouse having a separate or undivided interest therein.’” Accordingly, pursuant to 11 U.S.C. § 541(a), the Debtor’s interest in the property, i.e.… Read More

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Bankr. E.D.N.C.: In re Silverdeer, L.L.C.- Validity of Judgment Lien against Personal Property


The Debtor was filed in an involuntary Chapter 7 bankruptcy, which was eventually dismissed.  The bankruptcy court, later affirmed by the district court, awarded the Debtor $24,678.41 in attorneys’ fees and costs.

After the award was affirmed, however, BB&T a creditor, asserted that as a judgment creditor it was entitled to the money.  The bankruptcy court found to the contrary, holding that while a “judgment creditor acquires a lien on the judgment debtor’s real estate by docketing. But he acquires no lien on the personalty until there has been a valid levy.” Community Credit Co. Of Lenoir v. Norwood, 257 N.C.… Read More

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