In Re Rhoads

MEMORANDUM OF DECISION

I. Factual and Procedural Background

Stanley E. Rhoads (“Rhoads”) filed a voluntary petition under Chapter 7 of the Bankruptcy Code on January 24, 1990. Prior to Rhoads’ bankruptcy filing, John R. Jordan (“Jordan”) filed a complaint against Rhoads in Imperial County Superior Court concerning a partnership between Rhoads and Jordan entered prior to Rhoads' mar riage. Jordan obtained a default judgment against Rhoads, entered on August 22, 1989, in the amount of $176,028.82. Jordan filed abstracts of judgment against Rhoads in Los Angeles County on October 24,1989, in San Diego County on October 26, 1989 and in Orange County on December 4, 1989.

At the time of the filing of the abstracts of judgment, Rhoads owned a home in Huntington Beach which he purchased with his wife in September 1985 (“Property”). Rhoads and his wife took title to the Property as “Stanley E. Rhoads and Kathy D. Rhoads, husband and wife as joint tenants.” In the schedules attached to his bankruptcy petition, Rhoads characterized his interest in the Property as “V2 Joint tenant interest value'of property estimated at $360,000.00.” Rhoads listed the “market value of debtor’s interest” in…