In re Glenn
Opinion
Lead Opinion
Hargrove, J.
MEMORANDUM DECISION
At issue is whether the doctrine of res judicata bars the debtors’ motion to avoid a judicial lien. This court has jurisdiction to hear this matter pursuant to 28 U.S.C. § 1334 and § 157(b)(1) and General Order No. 312-D of the United States District Court, Southern District of California. This is a core proceeding pursuant to § 157(b)(2)(A) and (K).
FACTS
In March of 1989, VSM Industries, Inc. (“VSM”) obtained a judgment against the debtors, giving VSM a lien on the debtors’ home. On August 30, 1990, the debtors filed their Chapter 7 petition. On September 5, 1990, the court appointed a trustee.
On October 24, 1990, the trustee objected to the debtors’ homestead exemption because their homestead claim exceeded the statutory amount. After a hearing in June 1991, the *838 court entered an order that 1) sustained the trustee’s objection; 2) allowed the debtors’ homestead exemption in the statutory amount; 3) authorized the trustee to sell the debtors’ residence and use the proceeds to pay off the first trust deed and the debtors’ $45,000 exemption, with the balance going to the debtors’ estate; and 4) found that the second trust deed on the debtors’ residence…