Freeman Furniture Factories, Inc. v. Bowlds

ALLEN, Circuit Judge.

This appeal arises out of an order of the District Court approving the sale of a bankrupt estate, adjudging a claim in favor of appellant in the amount of a state court judgment against the bankrupt, and finding the lien thereof inferior to the cost of preserving the estate, costs of reorganization, costs of bankruptcy, and taxes.

Appellant’s principal contentions are that the bankruptcy court was not authorized to sell the bankrupt’s assets free and clear of liens; that appellant’s judgment is a statutory lien entitled to be paid first from the proceeds of the real estate…