London Grove Contractors, Inc. v. J. Robert Pierson, Inc.

OPINION

EMIL F. GOLDHABER, Bankruptcy Judge.

The issue in this case is whether a creditor, who commenced garnishment proceedings against the debtor grounded on a lawsuit instituted by the debtor against a third party, has a valid lien on the settlement proceeds of that action where the settlement occurred after the debtor filed for relief under the Bankruptcy Code (“the Code”). If so, we must determine if the creditor is entitled to relief from the automatic stay imposed by the Code in order to appropriate the fund. For the reasons stated herein we find that the creditor has no lien on the fund…