The bankruptcy court reiterated that a judgment lien on the debtor’s 50% interest in his house is fully avoided, but the judgment creditor may go to state court for a determination of the extent of the debtor’s interest vis-à-vis his former wife’s interest in the property, which was their marital home.

The court, after a trial, sanctioned the debtor for violating the automatic stay and the court’s turnover orders. The court found the debtor and his son repeatedly interfered with the trustee’s possession of certain real property, the debtor caused post-petition liens to be filed against the real estate, and the debtor withdrew IRA funds outside the scope of a court order authorizing certain withdrawals.

The court denied the debtor-defendants’ motion for summary judgment, finding that factual issues as to intent require a trial.

The bankruptcy court granted the Chapter 7 trustee’s motion to sell residential real estate over the objection of the debtor (who lacked standing) and several holders of construction liens on the property.

The bankruptcy court denied the debtors’ motion for turnover of funds from a pre-petition garnishment because the garnishment must first be avoided through an adversary proceeding. The court also denied the debtors’ request for sanctions under §362(k) for willful violation of the automatic stay for not releasing the garnishment upon learning of the bankruptcy case. The court noted that debtors and creditors share responsibility for getting garnishments released.

The bankruptcy court granted relief from the automatic stay to permit arbitration to continue.

The bankruptcy court granted in part the United States Trustee’s motion to examine the fees of debtor’s counsel. The court ordered full disgorgement of all post-petition fees paid, along with any pre-petition retainers.

On a creditor’s motion to alter or amend an order avoiding judicial liens against the debtor’s house, the bankruptcy court clarified: “The order avoiding [the creditor’s] lien went only as far as the debtor represented in his schedules and requested in his motion. [The creditor's] lien was avoided on the debtor's 50% interest in the property. No finding regarding the other 50% interest was made or intended.

The debtor’s family limited partnership filed an adversary proceeding seeking to except from discharge a $2.865 million judgment it obtained against the debtor. The partners include the debtor, two of his sisters, and a brother-in-law. In response, the debtor filed a counterclaim and third-party complaint regarding his late mother’s trust, alleging causes of action for breach of fiduciary duty, tortious interference with a business expectancy, and conspiracy.

The bankruptcy court avoided a judgment creditor’s lien that impaired the debtor’s homestead exemption. The creditor focused on two main arguments: (1) that the debtor had abandoned the home when he moved out after a marital separation, and (2) that even though the debtor moved back in after his wife and children moved out, he could not reestablish it as his homestead because he did not reside there with his family at that time.