522(f) Avoidance of Personal Property Lien Questions
Posted: Tue Jul 09, 2019 7:11 pm
I have a client who does not have any real property but has a percentage interest in a family owned business. A judgment lien was recorded against him in 2003 and renewed again in 2012. Thereafter, the IRS recorded several liens against the business and debtor, individually. In 2019, judgment creditor took debtors examination in Superior Court and obtained an order pursuant to Code Civ. Proc. 708.205(a) directing debtor to turn over the stock certificates for the company, which he did. Debtor than filed a Chapter 7.
Section 708.205(a) provides that the court may order the judgment debtor's interest in the property in the possession or under the control of the judgment debtor or the third person or a debt owed by the third person to the judgment debtor to be applied toward the satisfaction of the money judgment if the property is not exempt from enforcement of a money judgment. Such an order creates a lien on the property or debt. Prior to this order, was there a lien on the shares? That is, did the judgment lien not create a lien on the shares until the order pursuant to 708.205(a) in 2019? Do the IRS liens take priority over the judgment lien?
Can I use F 4003-2.2.AVOID.LIEN.PP.MOTION to avoid the judgment lien? If so, do I need to file two separate motions to avoid the original judgment lien in 2003 and the renewal of the lien in 2012? Lastly, is it necessary to file motions to avoid judgment liens for judgments that were recorded more than 10 years ago? Any insight would be greatly appreciated. Thank you.
Cameron H. Totten, Esq.
Law Offices of Cameron H. Totten
790 E. Colorado Blvd., 9th Floor
Pasadena, CA 91101
(818) 483-5795
(818) 230-9817 (fax)
ctotten@ctottenlaw.com
http://ctottenlaw.com/
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