Great Southwest Supply Co. of Texas v. Ernest & Associates, Inc. (In Re Ernest & Associates, Inc.)

MEMORANDUM OPINION

R. GLEN AYERS, Bankruptcy Judge.

SUMMARY

In this Chapter 11 adversary proceeding, creditor filed a Complaint to Determine Status of Constitutional Lien Claim and Written Objection to Sale of Property requesting the Court to declare a state constitutional mechanic and materialman’s lien valid, perfected, and not subject to the trustee’s avoidance powers. The Court held that the constitutional lien, although self-executing and properly perfected against the pre-petition owner of real property was, nevertheless, an avoidable encumbrance on realty under the…