News to me...what else can go wrong?

[CoBelle]

So, I just found out that in order to get my homestead exemption that was 'given away' in the sale of the house that was abandoned that i must file an avoidance motion in the bk court. I was hoping that the state court could just order it.

I have a motion that was already filed in my Ch 13 so I just need to dust it off a bit.
BUT: when I've read opinions, when it comes to lien avoidance the bk court seemed to do its own settlement sheet for closing....would this then be a way to bring up the gross errors and violations of law committed by the Receiver in closing the house using a ridiculous way of dividing the proceeds?

[despritfreya]

CB,

This is an issue I am not sure about so I am just throwing out a theory and I think you and I have batted this around before.

The bk court has the authority to avoid a judgment lien that impairs your homestead under 522(f). At first I thought that once the property was no longer property of the estate (abandoned), the bk court would have lost jurisdiction. However a reading of 522(f) only mentions "property of the debtor" with no reference to the estate. Therefore, an abandonment by the Trustee would not mean the court loses jurisdiction. But, once the property is no longer the debtor's property, I believe all ties are severed and the Court can no longer grant in rem relief:

"Contrary to (the creditor's) assertion, the mere fact that property is no longer property of the estate because it has been abandoned by the trustee does not vacate the court's jurisdiction since it also has jurisdiction over 'property of the debtor.'" See: In re Lafoon, 278 B.R. 767 (Bankr. E.D. Tenn., 2002).

So, I think the question is whether or not the bk court can avoid a lien under 522(f) since the property to which the lien attached has been sold and you no longer have an interest in it. It is no longer "property of the debtor".

Just my spin on this unique issue. It will be interesting to hear from you as to what happens with your Motion.

Des.

[AngelinaCatHub]

If I EVER bked again, Lord let it not be in Colorado. Amen.

[CoBelle]

Hey Angelina...it really isn't Colorado,it's just me and the gross pig that I spent 25years of my life with....oh an crooked divorce court judges and attonreys.
I'm not the average Colordo bk......lucky me.

So Des, yes, I do remember what you had said and that is why I was so panicked today....re the loss of jurisdiction. So 2 bk attorneys advised me that I could file to avoid. Both knew that the house had been involuntarily sold without my apporval or approval from the court and in a not arms lenght transaction and in secret. That said, the state court was supposed to 'hold' the proceeds until there was a hearing re disbursement. But instead the court signed off on disbursement without the required hearing. On the state level I filed a motion to vacate the disbursement. Is there any way to tie this into a FT?

That said, I reread the order of the bk judge in denying my extenssion of the stay. He said some awful things that were told to him in the hearing re same by X's divorce attorney who testified. All untrue BUT the courts findings were that I
delayed the sale and that I didn't have any real interest in the property only in the proceeds ...and THAT was NOT in evidence because it isn't at all true. So I am really pissed. In fact, I'mwriting to the judge and letting him know that it was unfair of him to say what he said based only on the testimony of a lying dickhead.

So yep, the judge can screw me I think.....and just say no more jurisdiction OR you didn't have ownership etc. The only defense is that i did file a statement of intent in the 7to avoid liens.

So first, I guess I will ask my divorce attorney to tell teh state court that the homestead exemption is a state right that I have pursued in the bk court. File in the bk court. X will object in the bk court and hopefully it will go to hearing where a casae can be made that I did have legal title, that I was illegally evicted, that there was no order approvingthe sale, that the Receiver testified for X in the bk court, yet was supposedly acting as an impartial officer of the court with fiduciary to both parties equally in the sale......

So yep, I'll keep trying but it sure sucks to be me.

[AngelinaCatHub]

Sadly, I must agree with your last sentence. But, this too will pass. Hang in there. I hope you didn't endure this for 25 years my friend. It will be over one way or other in time. 'Hub

[researchnerd]

Ugh...what a mess. Hang in there!

[DebtEnder]

I often don't even want to read your post any more CoBelle. They are far too depressing. Here is hoping a federal (aka BK) court can rise above the apparent rampant corruption going on at the local level.

[discouraged]

I had a hard time reading this too - but this is exactly when we need to be there for you. It is hard for us to hear, it must be so much harder for you to be living through it. I pray someday you will be blessed in abundance. For now, we can be that shoulder you need.