Deel Rent-A-Car, Inc. v. Howard A. Levine and Herbert Freehling

GOLDBERG, Senior Circuit Judge:

In this case, a creditor executed a judicial lien on the debtor’s property less than ninety days before the debtor’s petition for bankruptcy. Between the date of execution and the date of the petition, the debtor was married, thereby exempting the property under state law from the claims of every creditor except the lienor. We are asked to decide whether the execution of the lien constitutes a preference voidable by the debtor pursuant to sections 522(h) and 547 of the Federal Bankruptcy Code. We hold that it does, and affirm the judgment below.

Facts and…