As a bankruptcy attorney in Mount Vernon, IL for over 20 years, I read through and analyze court rulings throughout the country. Here is a case from Wisconsin, which is part of the same circuit that southern Illinois is in. That means if the same issue happens here, this case will be closely reviewed!
It involves marital debt … a constant concern in bankruptcy. This involved a debtor failing to sell a piece of marital property as ordered in a divorce decree…
From January 18, 2017.
Eastern District of Wisconsin: Ex-wife Creditor had a Non-avoidable Mortgage Lien on former couple’s marital home, which ex-husband Debtor Failed to Sell as Required by Divorce Decree
The Court finds that these factors weigh in favor of finding a mortgage lien.
This case appears to be a few steps removed from Klemme; the word “lien” is not used and there is no precise payment date or specific payment arrangements. Nevertheless, this Court concludes, as did Klemme, that beyond an analysis of the Wozniak characteristics, the intent question determines the outcome. The Divorce Judgment gave the home to Sternat. It then ordered Sternat to make the equalization payment, and in the same breath directed that the home be sold to create the funds necessary to effectuate the payment. The intent was that the home be transferred to Sternat and immediately liquidated to fund the payment. This intention to use the home as security for the equalization payment controls, and dictates that the Divorce Judgment created a mortgage lien.
A couple’s divorce judgment granted a non-avoidable mortgage lien in favor of the ex-wife against the marital home, which the ex-husband failed to sell as required before he entered bankruptcy, a Wisconsin federal judge has concluded in reversing a bankruptcy court ruling.
Read the entire case here.
About the blogger:
Michael Curry of Curry Law Office in Mount Vernon, Illinois (http://michaelcurrylawoffice.com/) has helped thousands of individuals, family and small businesses in southern Illinois find protection under the Bankruptcy Code for almost twenty-five years. He is also available to help individuals and families with their estate planning (wills, power-of-attorney) and real estate and other sales transactions.
He is also the author of books on finance and bankruptcy available on Kindle through Amazon!
Whether you live in Mount Vernon, Salem, Flora, or anywhere in Southern Illinois call Curry Law Office today at (618) 246-0993 and Finally Be Financially Free!
You can also find his website at http://www.mtvernonbankruptcylawyer.com.