In Re Demetrius Koubourlis Toni J. Koubourlis, Debtors. Robert William Akers v. Demetrius Koubourlis Toni J. Koubourlis

In this case, we must decide whether summary judgment was proper on the question of insolvency in a petition for bankruptcy. We find summary judgment was improper and, accordingly, reverse the Bankruptcy Appellate Panel (BAP).

FACTS AND PROCEEDINGS BELOW

On November 1, 1985, Robert Akers (“Akers”) was awarded judgment against the debtors, Demetrius and Toni Koubour-lis (“Koubourlises”), in Idaho state court. On two causes of action, Akers obtained two judgments; one for $115,883.43 and the other for $244,908.81. The judgments were made pursuant to enforcement of an approved settlement agreement which provided that, with respect to the latter amount, there would be a lien upon Koub-ourlis’s property until a single parcel was provided as equity for that amount. At this time, Koubourlises owned real property located in both the state of Idaho and the state of Washington.

On November 18, 1985, Koubourlises filed a voluntary petition for Chapter 11 bankruptcy in a Washington bankruptcy court. On November 19, 1985, Akers sought to subject the Koubourlises’ property in Washington to the Idaho judgment and lien by filing the judgment in a Washington state court under the Uniform…