First State Bank v. Onley (In re Onley )

MEMORANDUM AND ORDER

BILL H. BRISTER, Bankruptcy Judge.

The First State Bank of Shallowater (“Bank”) filed complaint to determine the validity, priority and extent of liens against the proceeds of sale of a residence once owned by the debtors, Mark K. Onley and Anna L. Onley (“Onley”). Myrtle McDonald (“Trustee”) contended that the bank had not perfected a lien. The following summary constitutes findings of fact and conclusions of law.

At all relevant times prior to February 1, 1982, the debtors owned a residence located on Lot 706 Broadmoor Addition to the City of Lubbock, Texas. On February 1,…