In re Morris

(Bankr. W.D. Ky. Sep. 28, 2017)

The bankruptcy court holds that the creditor’s lien is a judicial lien subject to avoidance under § 522(f) rather than a statutory lien. The creditor properly recorded a mechanic’s lien against the debtor’s property, and then filed suit prior to the one-year period expiring after the filing. However, the complaint filed sought a judgment for breach of contract rather than enforcement of the mechanic’s lien. The creditor then recorded a judgment lien following entry of a default judgment. The bankruptcy court concludes that the statutory process for perfecting the mechanic’s lien was not followed—the mechanic’s lien dissolved after the one-year period and the creditor held only a judicial lien at the time the bankruptcy petition was filed. Opinion below.

Judge: Lloyd

Attorney for Debtor: Allan E. Dunaway

Attorney for Creditor: Stiller Waterman LLC, David M. Cantor

2017-09-28 – in re morris

Author: Matt Lindblom

In re Posey

(Bankr. W.D. Ky. Jan. 21, 2016)

The bankruptcy court overrules the debtor’s objection to the division of unemployment insurance’s claim for overpayment of benefits to the debtor. The debtor argued that the claim should be unsecured, rather than secured as submitted by the division. The court finds that the claim is secured by virtue of KRS 341.415(3), which creates a lien against property of a recipient of improperly paid benefits. Opinion below.

2016-01-21 – in re posey

Author: Matt Lindblom