Opinion ID: 2517774
Heading Depth: 1
Heading Rank: 4

Heading: discussion and authorities

Text: ¶ 16 With the common law rule on joint tenancies in Oklahoma in mind, we examine 12 O.S.2001 § 706(B) which provides that a properly filed Statement of Judgment attaches as a lien to the debtor's homestead. This case is similar to Ladd, supra, in that the creditor, the Oklahoma Tax Commission, argued its tax lien did not terminate until paid pursuant to 68 O.S.1981 §§ 231, 234 (since amended). [10] This Court held, however, that because the interest to which the lien attached ceased to exist when the joint tenant died, the lien also ceased to exist. Timothy argues the Ladd case is distinguishable because no homestead property was involved. However, we find the cases are similar in that they each consider the common law rule on joint tenancies and its effect on the lien statutes at issue. We declined to infer legislative intent in 68 O.S. §§ 231, 234 to abandon the common law rule pertaining to liens on joint tenancy interests. Ladd, 1984 OK 60, ¶ 10, 688 P.2d 59, 61. We held the liens involved ceased to be valid because the underlying interest to which they attached ceased to exist. Ladd is relevant to the present case because of the well-settled common law rule that a joint tenant's interest in property is extinguished at the time of a joint tenant's death. ¶ 17 Timothy offers citations to bankruptcy cases which recognize the amendment of § 706 as a change in Oklahoma exemption law because judgment liens now specifically attach to a debtor's homestead. While the issue of whether such liens should be avoided under bankruptcy law is a matter of federal law and not pertinent to our decision in this case, the bankruptcy courts' discussion of the nature of a § 706 lien is instructive and persuasive. He cites, inter alia, In re Richardson, 224 B.R. 804 (Bankr.N.D.Okla.1998) which cites In re McKinney-Jones, 219 B.R. 619 (Bankr.W.D.Okla.1998). Although these cases reached different results on the lien avoidance issue, [11] both examined amended § 706 and determined the lien becomes enforceable only when the property is no longer used as the debtor's homestead. [12] ¶ 18 The reasoning of the bankruptcy courts is reasonable and persuasive. It recognizes the clear language in § 706 shows an intent to protect the homestead even if the lien has attached. The property may not be sold to pay the outstanding judgment while it is used as the judgment debtor's homestead. Applying this rule to this case, Timothy never had a chance to enforce his lien because there was never a time that Charles did not use the property as his homestead. As we did in Ladd, we also decline to infer legislative intent to abandon the common law rule regarding judgment liens on joint tenancy interests.