Hunter v. Schultheis Bros. Co. (In Re Hunter)

MEMORANDUM OPINION

JOSEPH L. COSETTI, Bankruptcy Judge.

The dispute between the Debtors and Equibank in this case requires the Court to consider whether the so-called “gap” (post-enactment and pre-effective date) judgment liens are voidable pursuant to 11 U.S.C. § 522(f)(1), in light of the recent Supreme Court opinion in the case of United States v. Security Industrial Bank, et al., - U.S. -, 103 S.Ct. 407, 74 L.Ed.2d 235 (1982). The Court holds that Congress intended the Code to apply to the gap liens and there is no constitutional impediment to such enactment. This Memorandum Opinion…