Owen James Thornton

• Court: United States Bankruptcy Court, C.D. California
• Decided: December 17, 2019
• Docket: 2:12-bk-29526
• Status: Unknown

Opinion

2 FILED & ENTERED

4 DEC 17 2019

CLERK U.S. BANKRUPTCY COURT 6 C Be Yn b t r a a k l c D h i es lt l r i c Dt E o Pf UC Ta Yli f Cor Ln Eia RK 7 NOT FOR PUBLICATION 8 UNITED STATES BANKRUPTCY COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 LOS ANGELES DIVISION 11

12 In re: No. 2:12-bk-29526-RK 13 OWEN JAMES THORNTON, Chapter 7 14 Debtor. SEPARATE STATEMENT OF DECISION ON 15 DEBTOR’S MOTION TO AVOID LIEN OF JUDGMENT CREDITOR NAVI MADDY 16 17 Date: December 10, 2019 Time: 11:00 a.m. 18 Courtroom: 1675 19 20 By separate order being filed and entered concurrently herewith, the court grants 21 the motion of debtor Owen James Thornton to avoid the judgment lien of judgment 22 creditor Navi Maddy pursuant to 11 U.S.C. § 522(f). Having considered the moving, 23 opposing, reply and sur-reply papers of the parties and the oral arguments of the parties 24 at the hearings on October 15, 2019, November 12, 2019 and December 10, 2019, the 25 court determines that the circumstances described in creditor’s opposition for denial of 26 the motion only shows that the prejudice alleged by the creditor is from the delay of 27 debtor in filing the lien avoidance motion, i.e., seven years after the bankruptcy case 28 was filed, and delay by itself as described in the opposition does not constitute prejudice 1 || to creditor to warrant denial of the motion. In re Chabot, 992 F.2d 891, 893 and n. 1 (9"" 2 || Cir. 1993). 3 The undisputed evidence in the papers relating to the motion establishes that the 4 || creditor’s judgment lien impairs debtor’s exemption in the subject property. Based on 5 || the valuation of the subject property by creditor's appraiser, Glenn W. Lee, of $828,000 6 || as of the petition date in June 2012, this leaves equity of $94,334.27 for debtor and his 7 || Co-owner, now spouse, who acquired the property before marriage as joint tenants after 8 || subtracting the undisputed value of the unavoided liens of $733,665.73 from the first 9 || and second trust deeds securing liens on the property. Debtor's 50% share of the 10 || equity is $47,167.14 protected by his claimed $50,000 homestead exemption under 11 || California Code of Civil Procedure § 704.730. Assertion of the creditor's judgment lien 12 || of $69,193.00 would impair the debtor's homestead exemption in his $47,167.14 equity, 13 || and thus, the lien is avoidable in its entirety under 11 U.S.C. § 522(f). 11 U.S.C. § 14 || 522(f)(2); In re Meyer, 373 B.R. 84, 89-92 (9"" Cir. BAP 2007). (The court also notes 15 || that using the valuation of the subject property at $765,000 by debtor’s appraiser, 16 || Michael Rorwick, yields the same result that the lien impairs debtor’s exemption.) 17 For the reasons stated herein and in the moving and reply papers, the court will 18 || grant debtor’s motion. 19 IT IS SO ORDERED. Hit 20 21 22 23

25 Date: December 17, 2019 26 United States Bankruptcy Judge 27 28