An unenforceable judgment lien on the debtor’s homestead property, which he owned as a tenancy in the entireties with his non-debtor spouse, was an inchoate lien which created a “cloud” over the title and therefore fell within section 522(f)’s purview for avoidance of a lien that impairs an exemption. CRP Holdings v. O’Sullivan, No.17-6012 (B.A.P. 8th Cir. Sept. 22, 2017).
The case came before the BAP upon appeal of the bankruptcy court’s order voiding the lien. The case was before the bankruptcy court for the second time after remand from the Eighth Circuit on the sole issue of whether CRP had a cognizable lien on Casey Drew O’Sullivan’s interest in the entireties property. CRP Holdings A-1, LLC v. O’Sullivan (In re O’Sullivan), 841 F.3d 786, 790 (8th Cir. 2016); In re O’Sullivan, 569 B.R. 163, 169 (Bankr. W.D. Mo. 2017). [Read more…] about Judicial Lien Need Not Be Enforceable To Be Avoidable