Opinion ID: 2977277
Heading Depth: 2
Heading Rank: 2

Heading: Frederick L. Radcliffe, Jr.

Text: On February 15, 2001, Radcliffe filed a voluntary petition for relief under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the Western District of Kentucky. On February 27, 2001, Radcliffe filed with the bankruptcy court, pursuant to 11 U.S.C. § 521(1), a list of creditors, a schedule of assets and liabilities, a schedule of current income and current expenditures, and a statement of his financial affairs. In the schedule of assets and liabilities, Radcliffe listed a fee simple interest in a house and lot located at 2600 Six Mile Lane, Louisville, Kentucky (the “Property”). Radcliffe claimed an exemption in the Property in the amount of $6,000.00. On April 9, 2001, Radcliffe filed a motion to avoid the judgment lien of PNC Bank, Kentucky, Inc., pursuant to 11 U.S.C. § 522(f). LPP, the successor by assignment of the judgment lien, filed a timely objection to Radcliffe’s motion. On May 24, 2002, the bankruptcy court entered its decision granting in part and denying in part Radcliffe’s motion to avoid. The bankruptcy court held that LPP’s lien was avoided in the amount of $48,418.35, leaving LPP with a judgment lien of $64,000.00 on the Property. On May 31, 2002, Radcliffe appealed the decision to the United States District Court for the Western District of Kentucky. On October 21, 2002, while the appeal was pending, the bankruptcy court closed Radcliffe’s bankruptcy case. On March 31, 2003, the district court issued its opinion reversing the bankruptcy court and completely eliminating LPP’s lien on the property. LPP appealed to this Court. Following the holding in In re Brinley, 403 F.3d 415, this Court opined that LPP’s lien was avoided in its entirety. LPP Mortgage, Ltd. v. Fredrick L. Radcliffe, Jr., 2005 WL 712746 (6th Cir. March 30, 2005). On October 19, 2005, LPP filed a motion to reopen the bankruptcy case and a motion pursuant to 11 U.S.C. § 551 to preserve for the benefit of the bankruptcy estate the unencumbered equity in Radcliffe’s property that was created by virtue of avoidance of LPP’s lien. On October 20, 2005, the bankruptcy court reopened the bankruptcy case. On June 20, 2006, Radcliffe filed an objection to LPP’s motion arguing, inter alia, that the Trustee had abandoned his interest in the Property, thus making § 551 of the Bankruptcy Code inapplicable. A hearing was held on July 25, 2006, at which time the Trustee orally joined in LPP’s motion to preserve the unencumbered equity for the benefit of the estate. Using the same analysis as in Brinley, on August 17, 2006, the bankruptcy court entered an order granting LPP’s motion to have the unencumbered equity preserved for the benefit of the bankruptcy estate. Radcliffe appealed to the United States District Court for the Western District of Kentucky. The district court, after consolidating Appellants’ appeals, affirmed the decisions of the bankruptcy court. Radcliffe and Brinley appealed to this Court.