In re: Lane

In 2014, Lane sold her residence to the Deans. They subsequently discovered mold and sued her. The state court submitted the dispute to binding arbitration. The arbitrator awarded the Deans $126,895.57. A Kentucky court entered judgment on the award. The Deans filed their judgment lien against Lane’s current residence in May 2017. Lane filed a voluntary chapter 13 petition in July, proposing to avoid the Deans’ judgment lien as impairing her exemption rights. The Deans filed an Objection, asserting that the judgment lien was not avoidable under 11 U.S.C. 522(f) and that, under section 1322(b), Lane was not entitled to “modify” their rights as holders of a claim secured by her residence. The Bankruptcy Court overruled the Objection and confirmed the Debtor’s Plan. The Deans did not appeal. In November, the Deans, as pro se creditors, filed a dismissal motion, which the court denied. The Sixth Circuit Bankruptcy Appellate Panel dismissed an appeal. The order denying the Deans’ motion to dismiss is not a final order and the record presents no grounds for granting leave to appeal under well-settled Sixth Circuit case law, even treating the pro se notice of appeal as a motion for leave to appeal under Federal Rule of Bankruptcy Procedure 8004(d). View "In re: Lane" on Justia Law