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

Summary: 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. 87, 91 (1962).  As no levy had occurred,   BB&T did not have a valid lien.  (While the Motion by BB&T was pending, the IRS did actually serve a notice of levy, so it’s a bit late for BB&T now.) For a copy of the opinion,  please see: Silverdeer, L.L.C.- Validity of Judgment Lien against Personal Property,pdf