In Re: Thomas Kai-Ming Chiu in Re: Linda Luk Chiu, Debtors, Culver, LLC v. Thomas Kai-Ming Chiu Linda Luk Chiu
Opinion
Opinion
Mahan, J.
Thomas Kai-Ming Chiu and Linda Luk Chiu (hereinafter “debtors”) filed a voluntary petition under Chapter 7 on July 25, 1995. Debtors scheduled their interest in a piece of residential real property (herein after “the subject property”). Culver had a judicial lien on the subject property in the amount of $42,725.57. Debtors also claimed a homestead exemption on the subject property. However, during the bankruptcy proceedings, debtors did not take action to avoid the- Culver lien under 11 U.S.C. § 522 (f)(1). The debtors were granted a discharge on December 4, 1995, and the case was closed on December 15, 1995.
In December 1999, debtors sold the subject property and were notified that the lien amount would have to be paid or $48,000 would be withheld from the sale proceeds. The sale of the subject property was recorded on January 14, 2000, with the escrow company holding approximately $48,000 pending a judicial determination of debtors’ liability on the lien.
On January 20, 2000, debtors filed a motion to reopen their bankruptcy case, which was granted. Debtors also filed a motion to avoid the judicial lien under 11 U.S.C. § 522 (f)(1), claiming that the lien impaired…