In Re Muriel Nash Reaves, Fka Muriel Adams Reaves, Debtor. William Little v. Muriel Nash Reaves

Seeking to enforce a secured debt, Appellant William Little levied execution against Appellee Muriel Reaves’ vehicle, prompting Reaves to invoke California’s regular exemption statutes to protect her asset. After the state court denied the exemptions, Reaves petitioned for Chapter 7 bankruptcy, claiming the special exemptions for her vehicle available to debtors in bankruptcy proceedings. In connection with her petition, Reaves filed a motion to avoid the judicial hen against her vehicle, which was granted by the bankruptcy court. Little appealed to Bankruptcy Appellate Panel of the Ninth Circuit (“BAP”), which upheld the bankruptcy court’s order, concluding that Reaves’ claim of special exemptions was not precluded by her pre-bankruptcy exemption filing. Little v. Reaves (In re Reaves), 256 B.R. 806 (B.A.P. 9th Cir.2000). We have jurisdiction under 28 U.S.C. § 158 (d), and we affirm.

I. BACKGROUND

On October 1, 1999, Little levied execution against Reaves’ 1987 Mercedes automobile in order to enforce a judgment debt in the amount of $10,744.10. The vehicle was placed in the custody of the Los Ange-les County Sheriffs Department and a Sheriffs sale of the vehicle was noticed for…