# U ni te d S ta te s B an kr up tc y A pp el la te P an el

For the Eig hth Circu it

__ __ __ __ __ __ __ __ __ __ __ __ __ _

No. 1 7- 60 12

__ __ __ __ __ __ __ __ __ __ __ __ __ _

In re: Cas ey

Drew O'Su ll iv an

ll ll Deb to r

----- ----- ----- ----- ----- -----

CRP Ho ld in gs , A-1, LLC

ll ll ll ll ll ll ll ll ll ll l Cr ed it or

- App el la nt

v.

Cas ey Drew O'Su ll iv an

ll ll ll ll ll ll ll ll ll ll l Deb to r - Ap pe ll ee

__ __ __ __ __ __
App eal fro m

Uni te d S ta te s B an kr up tc y Co ur t fo r th e Weste rn Dis tri ct of M is so ur i - J op li n

__ __ __ __ __ __

Su bm it te d: Sep te m

be r 5, 2 01 7
Fil ed : Se pt em

be r 22 , 20 17

__ __ __ __ __ __

Befo re SC HERMER, NAIL an d S ANBERG, Ban kr up tc y Ju dg es

.

__ __ __ __ __ __

SCHERM ER, Ban kr up tc y Ju dg eCRP Hol di ng s, A-1

, LLC (CRP ) ap pe al s t h e ba nk ru pt cy co ur t’s or de r 1

h o l d i n g t h a t CRP ho ld s a jud ic ia l li en ag ai ns t th e real pr op ert y of Cas ey Dre w

O’ Su ll iv an (Deb to r) an d av oi di ng th at li en un de r Ban kr up tc y Co de § 52 2( f)(1 ). W e

ha ve juri sd ic ti on ov er th is ap pe al fro m th e fin al or de r of th e ba nk ru pt cy co ur t. Se e

28 U.S.C. § 1 58 (b ). For th e rea so ns th at fol lo w, we affi rm

.

IS SUE

The so le is su e on ap pe al is whe th er CRP ha s a jud ic ia l li en on th e Deb to r’s real

pr op ert y (ei th e r e n f

o r c eab le or un en fo rcea bl e). W e ho ld th at CRP ha s an

un en fo rcea bl e li en on th e Deb to r’s pr op ert y

.

BACKGRO UND

The fact s are no t in di sp ut e. Bec au se th ey ha ve al read y be en se t fo rth in de ta il

in pr ev io us op in io ns by th e ba nk ru pt cy co ur t, by us , an d by th e Eig ht h Ci rcu it

, we

su m m ari ze t he m

he re.

In 19 95

, th e Deb to r an d hi s wife ac q u i r e d real pr op ert y in Bart on Co un ty,

Mi ss ou ri as th ei r res id en ce (Pro pe rty). In 20 15

, CRP ob ta in ed a de fau lt jud gm en t in

t he Ci rcu it Co ur t of Pl at te Co un ty, Mi ss ou ri, ag ai ns t th e Deb to r, bu t no t hi s w i f e

. CRP pr om

pt ly reco rd ed th e jud gm en t in t h e Ci rcu it Co ur t of Bart on Co un ty,

Mi ss ou ri.

A few m on th s la te r, th e Deb to r fil ed a pe ti ti on fo r rel ie f un de r Ch ap te r 7 of th e

Ban kr up tc y Co de

. The Deb to r cl ai m ed an ex em pt io n in hi s in te res t in hi s ho m e un de r
bo th M O

. R E V

. S T A T

. § 5 1 3

. 47 5 (h om es te ad ex em pt io n) an d Ban kr up tc y Co de
§5 22 (b )(3 )(B) (te na nc y by th e en ti ret ie s)

. The Deb to r fil ed a m ot io n to av oi d CRP’s
jud gm en t li en un de r Ban kr up tc y Co de § 52 2( f)(1 ) to th e ex te nt i t im pa ire d th e

The Hon or ab le Cy nt hi a A. N o r t o n , Ch ie f Uni te d St at es Ban kr up tc y 1

Ju dg e fo r th e Weste rn Dis tri ct of M is so ur i.

-2

-Deb to r’s ex em pt io n. CRP ob

jecte d to th e Deb to r’s § 52 2( f)(1 ) m ot io n, bu t it di d no t

ob ject to th e Deb to r’s cl ai m ed ex em pt io n or th e di sc ha rg e of th e Deb to r’s de bt

. The

ba nk ru pt cy

co ur t en te red a Ch ap te r 7 d is ch arg e o rd er.

The ba nk ru pt cy co ur t gr an te d th e Deb to r’s § 52 2( f)(1 ) m ot io n, co nc lu di ng th at

“ CRP' s jud gm en t li en - al th ou gh pe rh ap s no t en fo rcea bl e - cert ai nl y affi xe d up on th e
Deb to r's ho m e up on CRP' s reco rd in g of it s jud gm en t in Ba r to n Co un ty.” In re

O’S ul li va n, No. 15 -3 01 73 -can 7, 20 15 W L 35 26 99 6, at *2 (Ban kr

. W .D. Mo

. 20 15 ).

CRP a pp eal ed th e m at te r to us , and we affi rm ed

.

The Eig ht h Ci rcu it Co ur t of App eal s th en rev ers ed an d rem an de d th e m at te r to

th e ba nk ru pt cy co ur t. It st at ed th at th e lo wer co ur ts as su m ed th at CRP ha d a jud ic ia l

li en

. The Eig ht h Ci rcu it ex pr es se d do ub t whe th er CRP ha d a li en th at affi xe d to th e

Pro pe rty

, but it re co gnized a di st in ct io n be twee n un en fo rcea bl e li en s an d no ne xi st en t

2

li en s, st at in g th at an un en fo rcea bl e li en is av oi da b l e u n d e r §5 22 (f)(1 ). The co ur t

pr ov id ed a su m

m ary:

In su m , i f un de r Mi ss ou ri l aw CRP 's no ti ce of fo rei gn jud gm en t fai le d

to gi ve ris e to a li en on O'Su l l i v a n ' s ex em pt ho m es te ad pr op ert y , th e de b t wou ld ha ve be en di sc ha rg eab le th ro ug h th e ba nk ru pt cy
pr oc eed in gs

. O'Su ll iv an wou ld th e n n o t ne ed to res or t to § 52 2( f) to

av oi d C RP's jud gm en t. Alt ern at iv el y , O'Sul li va n c ou ld m ov e to av oi d
th e li en un de r § 52 2( f)(1 ) if CRP's no ti ce of forei gn jud gm en t fas te ne d

an ex is te nt , bu t p res en tl y un en fo rcea bl e, li en on hi s ex em pt pro pe rty.

CRP Hol di ng

s A-1, LLC v. O’S

ul li va n (In re O’S

ul li va n)

, 84 1 F.3 d 78 6, 79 0 (8 th Ci r.

20 16 ). The Eig ht h Ci rcu it “ de cl in e[d ] to un de rta ke th e qu es ti on of whe th er the re is

I n ou r pr ev io us op in io n, we al so ex pr es se d “ se rio us do ub ts as to whe t h e r 2

CRP ha s a li en at al l, m

uc h le ss on e th at a t t a c h ed or affi xe d to th e de bt or ’s i nt eres t in pr op ert y .” CRP Hol di ng s, A-1, LLC v. O’S

ul li va n (In re O’S

ul li va n)

, 54 4 B.R.
40 7, 4 12 , n.5 . (B.A.P. 8t h C ir. 2 01 6)

.

-3

-a co gn iz ab le li en un de r § 52 2( f)(1 ) in th e fir st in st an ce.” Id

. It rem an de d th e m at te r

to th e ba nk ru pt cy co ur t “ to de te rm in e whe th er CRP ha s a jud ic ia l li en on th e pr op ert y (ei th er en fo rcea bl e o r un en fo rcea bl e).” Id

. 3

On rem an d, th e ba nk ru pt cy co ur t he ld th at CRP ho ld s an un en fo rcea bl e jud gm en t l ie n. It st at ed th at :

Eve n if [th e ba nk ru pt cy ] co ur t is wro ng in it s in te rp ret at io n of Mi ss ou ri
la w, [ B a n k r up tc y Co de ] §§ 10 1( 36 ), (3 7)

, an d 52 2( f)(1 ) sh ou ld be
br oa dl y co ns tru ed un de r § 10 5( a) in fav or of a de bt or ’s fres h st art —an d
th e ba nk ru pt cy co ur t gi ve n th e sa m e e q ui ta bl e po wers th e Mi ss ou ri

co ur ts reco gn iz e to en su re th at CRP do es no t u n d u ly le ve rag e th is
Deb to r or hi s fr es h s ta rt i n t he fut ur e.

In re O’S ul li va n , 56 9 B.R. 16 3, 16 9 (Ban kr

. W .D. Mo

. 20 17 ). It gr an te d th e Deb to r’s

m ot io n s eek in g t o a vo id th at li en un de r § 5 22 (f)(1 ).

STANDARD OF REVIEW
The m at te r be fo re us pr es en ts a qu es ti on of la w, whi ch we rev ie w de no vo

. Se e

Lo op Co rp

. v. U.S. Tr us te e (In re Lo op Co rp .)

, 37 9 F.3 d 51 1, 51 5 (8 th Ci r .20 04 )
(ci ta ti on om it te d) (co nc lu si on s o f la w are re vi ewed de no vo ).

DISCUSS IO N

“ The Ban kr

up tc y Co de al lo ws de bt or s to ex em pt cert ai n pr op e r t y fro m th ei r
ba nk ru pt cy es ta te s, whi ch are ot he rwis e co m pr is ed of al l t h e de bt or 's le ga l or

eq ui ta bl e in te res ts in pr op ert y .” Abd ul –Ra hi m v. La Bar

ge (In re Abd

ul –Ra hi m)

, 72 0

F.3 d 71 0, 7 12 (8t h C ir. 20 13 ) (ci ti ng 11 U.S.C. §§ 52 2( d) an d 54 1( a)). Unl es s th ey

are av oi de d, pr e-p et it io n jud gm en t li en s or di na ril y su rv iv e a de bt or ’s ba nk ru pt cy an d

can be en fo rced on ex em

pt pr op ert y

. Far re

y v. Sa nd er

fo ot

, 50 0 U.S. 29 1, 29 7 (1 99 1) ;

The Eig ht h Ci rcu it st at ed th at CRP di d no t ch al le ng e th e ex em pt io n cl ai m ed 3 by the Debt or or t he ba nk ru pt cy co ur t’s i m

pa irment a na lysis

.

-4

-11 U.S.C. §5 22 (c) (ex em pt pr op ert y is li ab le po st -p et it io n fo r li en s th at are no t

av oi de d un de r § 52 2( f)). Ban kr up tc y Co de § 52 2( f)(1 ) prov id es a m ean s fo r a d eb to r

to av oi d a jud gm en t li en on ex em pt pr op ert y

. It st at es th at “ th e de bt or m ay av oi d th e

fix in g of a li en o n a n i n t e res t of th e de bt or in pr op ert y to th e ex te nt th at su ch li en

im pa irs an ex em

pt io n to whi ch th e de bt or wou ld ha ve be en en ti tl ed un de r su bs ect io n (b ) of th is sec ti on , if s uc h l ie n i s . . . a jud ic ia l l ie n. . . .” 11 U.S.C. § 5 22 (f)(1 )(A).

On th e on e ha nd

, CRP arg ue s th at it do es no t ha ve a li en fo r § 5 2 2 ( f)(1 )

pu rp os es be cau se th e Deb to r an d hi s wife own th e Pro pe rty in a te na nc y by th e

en ti ret y

. On th e ot he r ha n d

, CRP be li ev es , ho wev er, th at it s li en (wh ic h it cl ai m s
do es no t exi st to da y ) wil l sp rin g in to effe ct up on th e de at h of the Deb to r’s wife an d

su rv iv e th e b an kr up tc y

cas e. W e d is ag ree.

CRP di d no t ha ve a li en un de r th e de fin it io n pr ov id ed by Mi ss ou ri la w. A st at e

co ur t jud gm en t in Mi ss ou ri is a “ li en up on th e real es ta te of th e pe rs on ag ai ns t who m

su ch jud gm en t or de cree is ren de red ” in th e sa m e co un ty as th e jud gm en t. M O

. R E V

. S T A T

. § 51 1.3 50 .1. It is un di sp ut ed th at CRP’s Pl at te Co un ty Ci rcu it Co ur t jud gm en t

was al so a li en on an y “ real es ta te ” own ed by th e Deb to r in Bart on Co un ty. Mi ss ou ri

st at ut e de fin es “ real es ta te ” to “ in cl ud e al l es ta te an d in te res t in la nd s, te ne m en ts an d

he red it am en ts li ab le to be so ld up on exec ut io n

. ” M O

. R E V

. S T A T

. § 51 1.0 10
(em ph as is ad de d)

.

The Pro pe rty he ld by th e Deb to r in Bart o n C ou nt y do es no t qu al ify as “ real

es ta te ” u nd er t he Mi ss ou ri def in it io n. The Deb to r’s Pro pe rty was he ld as a te na nc y by th e en ti ret y

. Und er Mi ss ou ri la w, a te na nc y by th e e n t i r e t y “i s de em ed to be

own ed by a si ng le en ti ty, th e m ari ta l co m m un it y .” Uni te d St at es Fid

. And Gua r, Co

.

v. Hil es , 67 0 S.W

. 2d 13 4, 13 7 (Mo

. Ct

. App

. 19 84 ). “ Each sp ou se is de em ed to be

se iz ed of th e who le

, . . . .” Id

. A cred it or of on ly on e sp ou se can no t le vy on en ti ret ie s

pr op ert y to sa ti sf

y th e de bt of th at sp ou se

. Se e Bak er v. La mar , 14 0 S.W

. 2d 31

, 35
(Mo . 1 94 0) (jud gm en t fil ed ag ai ns t on l y o ne sp ou se co ul d no t “ co ns ti tu te a li en on

-5

-th e [en ti ret ie s] pr op ert y si nc e ne it he r ha s a se pa rat e in te res t su bjec t to ex ecu ti on .”).

Bec au se th e Pro pe rty wa s e n t i r e t ie s pr op ert y , it di d no t co ns ti tu te “ real es ta te ”

be cau se it was no t “ li ab le to be so ld up on ex ecu ti on ” ba se d on th e jud gm en t, whi ch

was ag ai ns t o nl y

th e Deb to r an d n ot hi s wi fe. 4

Nev ert he le ss , as th e ba nk ru pt cy co ur t reco gn iz ed

, we m us t de te rm in e th e

ex is te nc e of a li en fo r th e pu rp os es of § 52 2( f)(1 ) by lo ok in g to st at e la w in th e

co nt ex t of th e Ban kr up tc y Co de ’s de fin it io ns of th e te rm s “ jud ic ia l li en ” an d “ li en .”

Pu rs ua nt to Ban kr up tc y Co de § 10 1( 36 ), a “ju di ci al li en ” is a “ li en ob ta in ed by
jud gm en t, le vy, se qu es tra ti on , or ot he r le ga l or eq ui ta bl e pr oc es s or pr oc eed in g.” 11

U.S.C. § 10 1( 36 ). The Ban kr up tc y Co de de fin es th e te rm “ li en ” as a “ ch arg e ag ai ns t

or in te res t in pr op ert y to se cu re pa y m en t of a de bt or pe rfo rm an ce of an ob li ga ti on .”

11 U.S.C. § 10 1( 37 ). The le gi sl at iv e hi st or y of th e Ban kr up tc y Refo rm Act st at es th at

th e de fin it io n of “ li en ” is “ ve ry br oa d” an d in cl ud es “ in ch oa te li en s.” S. R E P

. N O

. 95

- 98 9, at 25 1 (1 97 8) ; H.R.Rep

. No. 95 -5 95

, at 31 2 (1 97 7)

. The pu rp os e of av oi da nc e

un de r § 52 2 is to al lo w th e de bt or to “ vo id an y jud ic ia l li en on ex em

pt p r op ert y .”

H.R.R E P

. N O . 95 -5 95 , at 1 26 (19 78 ) (em ph as is ad de d)

.

The Ban k r u pt cy Co de do es no t li m it th e av oi da nc e of jud ic ia l li en s to th os e

li en s th at are en fo r c e a bl e. The Eig ht h Ci rcu it “ co nc lu de [d ] th at whe re a jud gm en t gi ve s ris e to an un en fo rcea bl e li en , a d e b to r m ay m ov e to av oi d th at li en un de r §5 22 (f).” O’S

ul li va n , 84 1 F.3 d at 79 0. W he re a jud gm en t do es no t gi ve ris e to a li en

at all “ § 5 22 (f)(1 ) is su pe rfl uo us an d wi th ou t ap pl ic at io n.” Id

.

The reco rd in g of CRP’s fo rei gn jud gm en t in Bart on Co un ty crea te d a cl ou d on

th e Deb to r’s ti tl e on hi s ex em pt ho m es te ad

, whi ch co ns ti tu te d a “ch a r g e ag ai ns t or

In ad di ti on , Mi ss ou ri Rev is ed S t at ut e § 51 3.4 75 .1 st at es th at “ [t]he 4

ho m es te ad of

ev ery pe rs on , . . . no t ex ceed in g t he va lu e o f fi fte en th ou sa nd do ll ars , whi ch is or sh al l be us ed by su ch pe rs on as a ho m es te ad

, sh al l,

. . . ., be exemp t fr om

at ta ch men t a nd

exec ut io n. ” M O

. R E V

. S T A T . § 5 13 .47 5.1 (em ph as is ad de d)

.

-6

-in te res t i n p ro pe rty” un de r Mi ss ou ri l aw an d q ua li fie d a s a “ jud ic ia l lie n” un de r th e

Ban kr up tc y Co de

. 11 U.S.C. § 10 1( 36 ). W he re th e reco rd do es no t sh ow on it s face

th at reco rd ed d o c u men t s (s uc h as a jud gm en t) are vo id

, a cl ou d on ti tl e m ay be

crea te d warra nt in g t h e im po si ti on of a co ur t of eq ui ty to rem ov e it

. Se e Mah en v.
Ruh r , 24 0 S.W

. 16 4 (Mo

. 19 22 ) (in a co m pl ex se t of t r a n s a c ti on s, th e ex is te nc e of

co nv ey an ce in st ru m en ts th at were vo id du e to pr op ert y be in g he ld as te na nc y by th e

en ti ret y (in cl ud in g a sh eri ff’s de ed reci ti ng a jud gm en t an d ex ecu ti on , whe re th e

ex ecu ti on was ag ai ns t on ly a hu sb an d’s in te res t th at was no t su bjec t to le vy an d was
ba se d on a no ne xi st en t jud gm en t ag ai ns t hi m ) were cl ou ds on ti tl e th at sh ou ld be

rem ov ed be cau se th ey wou ld crea te co nf us io n fo r an or di na ry se arch er of th e reco rd s
de te rm in in g whe th er th e co nv ey an ces were va li d) ; Rod ge rs v

. Fir

st Na t. Ban k of
App le to n Ci ty

, 82 Mo .App

. 37 7, 38 1- 38 5 (Mo .Ct. App

. 19 00 ) (fi li ng of tra ns cri pt of

un en fo rcea bl e jud gm en t th at ap pe ared to be a li en on ho m es te ad pro pe rty creat ed a
cl ou d on ti tl e an d rig ht s of jud gm en t de bt or to h i s r e al es ta te an d de pr eci at ed th e

va lu e o f th e p ro pe rty).

In th is cas e, pr act ic al di ffi cu lt ie s m ay ex is t fo r an or di na ry se arc h e r of th e

reco rd s o r ev en a ti tl e co m pa ny try in g t o d et erm in e whe th er t he jud gm en t cr eat ed a

li en an d th e Pro pe rty is li ab le fo r ex ecu ti on

. As a res ul t, th e m ark et ab il it y of ti tl e to

th e Pro pe rty an d th e va lu e of th e Pro pe rty wou ld be affe ct ed

. In ad di ti on , as th e
ba nk ru pt cy c o u r t n o t e d, CRP’s jud gm en t “ co ul d be co m e a li en th e m om en t th e

. . . [Deb to r’s] sp ou se di es .” O’S ul li va n , 56 9 B.R. at 16 8. Acco rd in gl y , a cl ou d on ti tl e

ex is ts

, whi ch is cert ai nl y su ffi ci en t to co ns ti tu te a “ ch arg e ag ai ns t or in te res t in ” th e

Pro pe rty un de r th e Ban kr up tc y Co de

. App li cat io n of § 52 2( f) wil l cl ear th e cl ou d on

ti tl e.

CRP’s reco rd in g of it s jud gm en t “ fa st en ed an e

x i st in g, bu t pr es en tl

y

un en fo rc ea bl e li en ” on th e Pro pe rty. Id

. The fa ct th at an un en fo rcea bl e li en ex is ts

is bu tt res se d by CRP’s be li ef (d is cu ss ed in m or e de ta il be lo w) th at up on th e de at h of

th e Deb to r’s wife , i t wil l ha ve an en fo rcea bl e li en th at wil l su r v i v e th e ba nk ru pt cy

.

-7

-W e al so fin d it in te res ti ng th at CRP to ok act io ns co ns is te nt wit h reco gn it io n of a li en ,

su ch as r eco rd in g t he jud gm en t i n B art on Co un ty.

In an at te m

pt to bo ls te r it s po si ti on , CRP ci te s a Si xt h Ci rcu it cas e in te rp ret in g

Ten ne ss ee Law, Ara n g o v

. T h i r d Na t’l Ban k in Na sh vi ll e (In re Ara ng o)

, 92 2 F.2 d

61 1, 61 5 (6 th Ci r. 19 93 ), an d m a k e s arg um en ts th at : (1 ) th ere is no li en to av oi d 5

un de r §5 22 (f)(1 ) be cau se CRP do es no t ha ve a li en on th e Deb to r’s ex em pt “ pr es en t

po ss es so ry in te res t” in th e Pro pe rty; bu t (2 ) CRP ’s li en wil l s pr in g in to effe ct up on

th e d eat h o f th e Deb to r’s wife ba se d on a no ne xe m pt co nt in ge nt fut ur e in te res t i n a rig ht of su rv iv or sh ip in th e Pro pe rty, an d th e li en wil l su rv iv e th e ba nk ru pt c y. W e
di sa gr ee. As th e ba nk ru pt cy co ur t reco gn iz ed

, in Mi ss ou ri th e rig ht of su rv iv or sh ip

is no t a se pa rat e ti tl e or rig ht fro m th e or ig in al te na nc y by th e en ti ret y in te res t. “ Upo n

th e de at h of on e sp ou se , th e su rv iv in g sp ou s e c o nt in ue s to ho ld th e who le ti tl e
be cau se t h ere is no on e to sh are it
- no t be cau se of su rv iv or sh ip

, whi ch affe ct s a
ch an ge i n t h e p e r so n on ly an d no t th e es ta te .” Hil es
, 67 0 S.W . 2 d at 13 7 (ci ta ti on s

om it te d) ; Bak

er , 14 0 S.W

. 2d at 35 ( c i t i n g Fr o s t v. Fro st

, 98 S.W

. 52 7, 52 8 (Mo

. 1 9 06 )) (“ In th e ev en t of th e de at h of on e [s po us e] th e ot he r co nt in ue s to own t h e

en ti re es ta te rel ie ve d fro m th e bu rd en of th e ot he r’s in te res t.”)

. Fo r th e reas on s st at ed

ab ov e, CRP cu rren tl y

ho ld s an un en fo rcea bl e li en for th e p ur po se s o f § 5 22 (f).

In ad di ti on , we ag ree wit h th e ba nk ru pt cy co ur t th at CRP’s arg um en t is ou ts id e

th e sc op e of th e Eig ht h Ci rcu it ’s rem an d. The Eig ht h Ci rcu it ’s in st ru ct io n was si m pl e

an d t he sco pe of it s rem an d was narro w: it re m an de d t he m at te r fo r a d et erm in at io n

of “ whe th er CRP ha s a jud ic ia l li en on th e pr op ert y (ei th er en f o r c e a b l e or

un en fo rcea bl e).” O’S

ul li va n , 84 1 F.3 d at 79 0. The ba nk ru pt cy co ur t co rrec tl y st at ed

th at th e on ly two ch oi ces fo r pr oc eed in g up on rem an d by th e Eig ht h Ci rcu it were to : (1 ) de te rm in e th at th ere was no jud ic ia l li en an d, acco rd in gl y, no li en to av oi d, an d

W e ex pr es s no op in io n co nc ern in g th e co rrec tn es s of th e S i x th Ci rcu it ’s 5

de ci si on in Ara ng o

.

-8

-th at th e un de rlyin g de bt was di sc ha rg ed ; or (2 ) fin d th at th ere was an en fo rcea bl e or

un en fo rcea bl e li en an d th at § 52 2( f)(1 ) ap pl ie s. Tha t is ex act ly wha t th e ba nk ru pt cy

co ur t d id

.

Our de ci si on is co ns is te nt wit h th e pu rp os e of § 52 2( f), whi ch fav or s pr ot ect in g

ex em pt io ns at th e co st of jud ic ia l lie nh ol de rs as a pa rt of a de bt or ’s fres h st art

. The

le gi sl at iv e hi st or y of § 52 2( f) “ su gg es ts th at a pr in ci pa l reas on Co ng res s si ng le d ou t jud ic ia l li en s was be cau se th ey are a de vi ce co m m on ly us ed by cred it or s to de feat th e

pr ot ect io n ba nk ru pt cy la w acco rd s ex em pt pr op ert y ag ai ns t de bt s.” Far re y, 50 0 U.S.

at 29 7- 29 8 (“ Ban kr u p t c y ex is ts to pr ov id e rel ie f fo r an ov erb ur de ne d de bt or

. If a
cred it or be at s th e de bt or in to co ur t, th e de bt or is ne ve rth el es s e n t i t le d to hi s

ex em pt io ns .”) (qu ot in g H. R E P

. N O

. 95 -5 95

, p. 12 6- 12 7)

. In ad di ti on , it is ap pa ren t

th at CRP ta rg et ed th is sp eci fic pi ece o f th e Deb to r’s Pro pe rty wi th th e be li ef th at it

he ld a li en ag ai ns t th e Pro pe rty. Oth erwi se , CRP wou ld no t ha ve go ne to th e tro ub le

to reco rd it s judg m en t i n B art on Co un ty. It wo ul d b e u nf ai r to al lo w CRP to de feat

th e Deb to r’s fres h st art be cau se it ha s no w d ev is ed a sc he m e w h e r e b y i t be li ev es it

m ay av oi d th e pr ot ect io ns affo rd ed to th e Deb to r by §5 22 (f) an d st il l reap th e be ne fit

of it s l ie n u po n t he de at h o f th e Deb to r’s sp ou se

.

CONCLUSI ON

Fo r th e rea so ns st at ed , th e d eci si on of t he ba nk ru pt cy co ur t i s AFF IRM ED.

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