Wilson
Wilson v. Otto (In re Wilson)
Opinion
Lead Opinion
Pyle, J.
MEMORANDUM DECISION
Donald and Barbara Wilson the plaintiff-debtors, filed a joint petition under Chapter 7 of the Bankruptcy Code ( 11 U.S.C. § 101 et seq., hereinafter, “Code”) on January 20, 1982. An order discharging the debtors from their obligations was entered on June 7, 1982. Prior to discharge, the Wilsons brought this action pursuant to 11 U.S.C. § 522 (f) to avoid the defendant, John Otto’s, judicial lien, alleging that Otto’s lien impairs the Wilsons’ scheduled homestead exemptions.
Schedule B^4 of their Petition reflects that the Wilsons chose to take advantage of *393 both the federal and state homestead exemptions on their residence. Barbara Wilson claimed a $7,500 exemption under § 522(d)(1) of the Code, and Donald Wilson claimed a state exemption of $45,000 under California Civil Code Section 1237.
The parties stipulated to the following pertinent facts: (a) that a judgment was entered in the Municipal Court of California in favor of Otto against Donald Wilson, in the sum of $597.51 on August 7, 1979, and that an abstract of judgment was duly recorded on September 27, 1979; (b) that the recorded abstract of judgment constituted a lien on all the real property…