Kipperman v. Proulx (In re Burns)

OPINION

MARLAR, Bankruptcy Judge.

INTRODUCTION

The chapter 7 trustee (“Trustee”) has appealed the bankruptcy court’s summary judgment in favor of a judgment creditor, who served an Order to Appear for Examination (“ORAP”) on the judgment debtor and thus created a lien on his nonexempt personal property, under California law. Trustee maintains that the judgment creditor was required to serve a third-party ORAP because the property — a $150,000 settlement in federal district court litigation- — was still in the possession of the payor United States of America (“United States”) at the time. Within…