McCready

Sometimes it’s not over when it’s over. A bankruptcy extinguished defendant debtor’s liability on a judgment in favor of plaintiff. But here it did not extinguish plaintiff’s lien on the bankrupt business from which plaintiff was entitled to the assets and profits of the business.

Shortly before his death, plaintiff’s husband sold a business to defendant. Defendant defaulted on the purchase contract payments. Plaintiff sued and obtained a money judgment and a lien on the assets of the business including all profits. Defendant then declared bankruptcy, terminating his personal liability on the judgment, but the lien survived. Plaintiff brought an action for money had and received to recover postbankruptcy profits from the business. The trial court found for defendant on the ground that plaintiff’s remedy was through the laws applicable to the enforcement of judgments. We reverse.

FACTS

In 2007 Mary J. McCready’s husband sold his business, BMIP Billy Bags Design (Billy Bags), to William F. Whorf. McCready’s husband died after the sale. Whorf failed to make the payments on the sale. McCready brought an action against Whorf to recover the sales price.

On July 6, 2011,…