Duncan v. Gunter Insurance Agency (In Re Duncan)

OPINION ON EXTENT AND VALIDITY OF JUDGMENT LIEN

A. POPE GORDON, Bankruptcy Judge.

The debtors, Kenneth Leon Duncan and Donna Maria Duncan, commenced an adversary proceeding to have the judicial lien of the creditor, Gunter Insurance Agency, declared void. Earlier, the court had entered an order avoiding the judicial lien under 11 U.S.C. § 522(f)(1). Under that provision of the Code, a judicial lien may be avoided to the extent that it impairs property which may be exempted by a debtor. Obviously, the exempted property is property owned by the debtor at bankruptcy. In this proceeding, however,…