Bankr. E.D.N.C.: In re Grimes - Motion to Avoid Fixing of Judgment Liens in the Future Denied

Summary: Grimes owns real property with her husband as tenants by the entireties. After filing bankruptcy, she sought to avoid the fixing of three judgments at any later point against that property should it later cease to be held as tenants by the entireties, for example due to divorce or her husband’s death. The bankruptcy court, dissenting from In re Corey, 2013 WL 3788239 (Bankr. E.D.N.C. 2013), held that 11 U.S.C. § 522(f) did not allow the avoidance of a hypothetical future “fixing of a lien.” That notwithstanding, Grimes’ discharge protected her from such hypothetical future liens as “[without a debt, no lien can be created.” Commentary: In fact, an attempt to fix such a lien with no underlying obligation in the future would constitute a discharge violation. For a copy of the opinion, please see: Grimes - Motion to Avoid Fixing of Judgment Liens in the Future Denied