CALIFORNIA FAMILY LAW
...Bankruptcy
......Effect on Division of Property/Debts
.........Liens From Disso. Judgment/Homesteads
 10 Cards On This Topic:
  • Discharge in bankruptcy does not discharge certain dissolution related property obligations.
  • Owner may not avoid other spouse's lien on property interest obtained in divorce decree.
  • Bankr. ct. erred in finding Homestead Declaration prevented Trustee from selling former family home. However, non-debtor H entitled to an automatic homestead exemption in the house.
  • Unreinvested proceeds from sale of couple’s homestead after confirmation of chapter 13 plan was not disposable income to be used to pay unsecured creditors.
  • H can use 11 U.S.C. §522 (f)(1) to avoid judicial lien imposed on residence while he held c/p interest in it where he subsequently acquired sole ownership.
  • Automatic homestead exemption not impaired by judicial lien, as debtor would receive statutory amount in forced sale prior to lien's being satisfied; no basis to avoid lien.
  • H may not avoid W's lien on residence where he never possessed interest to which lien attached, before it attached; 11 U.S.C. 522 (f)(1) inapplicable.
  • Interest in community property may not be discharged in bankruptcy.
  • 9th Cir. holds unequivocally that bankruptcy debtors in Cal. are entitled to claim Cal. homestead exemption.
  • Bankruptcy court has no jurisdiction over H's homestead property and cannot order trustee to turn over sale proceeds to W's divorce attorney as fees.


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