In Re Robert Lee White, Dba Aanco Fence Company, Debtor. Cheryl White v. Robert Lee White

White appeals from a district court order disallowing his claimed homestead exemption in federal bankruptcy proceedings.

In a divorce decree, an Oregon court awarded White’s wife ownership of the family residence and, in return, awarded White a judgment lien against the property in the amount of $13,000. White later filed bankruptcy and claimed a homestead exemption in the value of that lien. The district court held that the lien was not a sufficient ownership interest to constitute a homestead under Or.Rev.Stat. § 23.240.

We conclude that the order disallowing the exemption is appealable as a final judgment, and affirm the holding that the lien was not a sufficient ownership to constitute a homestead. We remand, however, for further consideration whether the lien was entitled to protection as the proceeds of the sale of a homestead.

FACTS

Cheryl and Robert White were divorced by an Oregon court in December 1981. The court’s decree provided that Cheryl be given ownership of the family residence. In payment for his interest in the residence, Robert was to be paid $13,000, secured by a judgment lien on the residence. The purchase price was to be paid within five years or upon…