In Re Donald Wate CATLI, Debtor. ESTATE OF Evelyn Eileen CATLI, Appellant, v. Donald Wate CATLI, Appellee

Pursuant to a divorce decree, Donald Wate Catli (“Mr. Catli”) was awarded the family home, and Evelyn Eileen Catli (“Mrs. Catli”) was awarded a lien against the home. Thereafter, Mr. Catli filed for bankruptcy and sought avoidance of Mrs. Catli’s lien under 11 U.S.C. § 522 (f)(1). In an unpub lished memorandum disposition, a Bankruptcy Appellate Panel ruled that Mrs. Catli’s lien was a judicial lien subject to the avoidance provision of § 522(f)(1). Mrs. Catli appeals, arguing that her lien is not subject to avoidance under § 522(f)(1). We have jurisdiction under 28 U.S.C. § 158 (d). We reverse.

BACKGROUND

After sixteen years of marriage, Mr. and Mrs. Catli separated and commenced divorce proceedings in Clallam County, Washington. Pursuant to the dissolution decree dated June 24, 1983, it was

ORDERED, ADJUDGED AND DECREED that the community property will be divided as follows:

Instead of selling the home as ordered, Mr. Catli, on May 8,1989, filed for bankruptcy under Chapter 7 of the Bankruptcy Code and claimed a homestead exemption in the family home under 11 U.S.C. § 522 (d)(1). Mr. Catli then moved pursuant to 11 U.S.C. § 522 (f)(1) to avoid Mrs. Catli’s lien on the family…