You are here

Heather Ann Wright, Ch. 13, BK23-80638-BSK (Nov. 2, 2023)

The bankruptcy court denied a debtor’s objection to the claim of a creditor asserting an attorney’s lien in real estate awarded to her in divorce proceedings. The court ruled that, under Nebraska law, although an attorney does not have a general or possessory attorney’s lien against a client’s real estate, an attorney’s charging lien can attach to real estate that is the subject of and recovered in an action.

However, this order is not final, as issues remain to be decided. Those issues include whether a charging lien attaches to real estate recovered in a divorce action; how much of the lien is secured by the real estate; is an attorney’s charging lien against real estate avoidable in an adversary proceeding as a statutory lien under 11 U.S.C. §§ 544 and 545; and does the secured claim need to be estimated for purposes of a Chapter 13 plan?

Thursday, November 2, 2023
Judge Brian S. Kruse