Waite v. Department of Public Welfare (In Re Waite)

MEMORANDUM AND ORDER

RE: LIEN AVOIDANCE

THOMAS WOOD, Bankruptcy Judge.

Plaintiffs have filed a complaint to avoid a lien of judgment obtained by the defendant, Pennsylvania Department of Public Welfare (DPW). A motion to dismiss the complaint has been filed by DPW. Two issues are involved. First, whether the judgment entered of record by DPW against real estate of public assistance recipients is a judicial lien under the definition of the Bankruptcy Reform Act of 1978 (the Code). Second, whether a debtor may avoid a judicial lien under § 522(f)(1) of the Code where avoidance would interfere with…