In re Chiu
Aug 23, 2001OUTCOME: Affirmed by BAP and by Ninth Circuit
The case held that Debtors may strip a judgment lien of a judgment creditor upon their former residence subject to a declared homestead in a Chapter 7 case, even after discharge and upon reopening of c ... ase, notwithstanding the prior sale of the property, where the funds were still held in escrow. The creditor's objection on the basis that the lien no longer impaired the Debtors' homestead was overruled, a decision affirmed by both the Bankruptcy Appellate Panel and the Ninth Circuit Court of Appeals. The case has been oft cited for the rule that debtors' right to an exemption is determined by the facts that exist as of the date a case is filed, not when the lien arose, and a judgment lien may be avoided later, after the case has been filed, even where the debtor no longer has an interest in trhe property. See further discussion of the case in March, Ahart Tchaikovsky, Cal. Prac. Guide: Bankruptcy (TRG 2007) at 21:1471 and 21:1485.
