In re Cravey
| Decision Date | 24 May 1989 |
| Docket Number | Bankruptcy No. 88-60253. |
| Citation | 100 BR 119 |
| Parties | In re John E. CRAVEY, Gloria Ann Cravey, Debtors. John E. CRAVEY, Gloria Ann Cravey, Movants, v. L'EGGS PRODUCTS, INC., A DIVISION OF HANES GROUP, Bounty Trading Corporation, Spar-Kell Industries, Inc., a division of Sheridan Designs, Answers By Riddles, Inc., David Brett Sales, Inc., Henry I. Siegel, Daisy of California, Natwest Commercial Services, Inc., Republic Factors Corporation and The Slavenburg Corporation, Respondents. |
| Court | U.S. Bankruptcy Court — Southern District of Georgia |
R. Kenny Stone, Edenfield, Stone & Cox, Statesboro, Ga., for movants.
Shari L. Smith, Ackerman, Woodard & Butler, Augusta, Ga., for respondents.
John E. Cravey and Gloria Ann Cravey (debtors) have filed a motion to avoid certain judicial liens held by the above referenced respondents contending that the judicial liens impair the exemptions to which these debtors are entitled under the Georgia exemption statute. See O.C.G.A. (Official Code of Georgia Annotated) § 44-13-100 et seq. Various judicial lienholders have objected, and hearing was held. After consideration of the evidence presented, argument of counsel and briefs submitted after hearing, this court makes the following findings of fact and conclusions of law:
The debtors' residence consists of a house and lot located at 1300 Brumette Street, Vidalia, Toombs County, Georgia and more particularly described as follows:
All that certain tract of land, situate, lying and being in the City of Vidalia, 51st G.M. District, Toombs County, Georgia, known as Lot Number Three (3) and the southern half of Lot Number Two (2) of Block "1" of the Godbee Layout, a subdivision of the said City of Vidalia, said tract fronting a distance of one hundred fifty (150) feet along the southeastern margin of the right-of-way of Brumette Street and extending back between parallel lines and an even width as front to the run of a branch, said tract being bound, now or formerly as follows: Northeast by the remainder of Lot # 2, property of Francis Godbee, for a distance of 181.8 feet; Southeast by lands of James A. Crockett (formerly lands of Mrs. Jack Meadows) for a distance of 151.47 feet, more or less, the run of a branch being the line; Southwest by Lot # 4, lands formerly of Mrs. Francis Godbee for a distance of 163.0 feet; and Northwest by the right-of-way of Brumette Street for a distance of 150.0 feet. Said tract being more particularly shown upon a specific plat of survey thereof prepared by John E. Dykes, Surveyor, dated December 1, 1976, a copy of which is recorded in the Office of the Clerk of Superior Court of Toombs County, Georgia, in Plat Book 12, Page 400, such plat and the record thereof being by reference incorporated herein.
The fair market value of the property is Eighty-Five Thousand and No/100 ($85,000.00) Dollars. The property is subject to a first in priority deed to secure debt from debtors, the holders of title at time of transfer, to Vidalia Federal Savings & Loan Association (Vidalia Federal) dated May 7, 1987, recorded in Deed Book 235, Pages 308-311, Toombs County, Georgia records. The outstanding indebtedness to Vidalia Federal is Eighty-Three Thousand Eight Hundred Ninety-One and 65/100 ($83,891.65) Dollars, as evidenced by the proof of claim filed by said creditor in this proceeding. The debtors have sought to claim an interest in said property as exempt pursuant to O.C.G.A. § 44-13-100(a)(1) and to avoid the judgment liens of respondents herein pursuant to 11 U.S.C. § 522(f)(1).
The judicial liens sought to be avoided are as follows:
Date of Amount of
Plaintiff Judgment Judgment
a) L'Eggs Products, Inc., Division Of
Hanes Group 04/09/87 $1,066.33
b) Bounty Trading Corporation 08/04/87 1,178.57
c) SPAR-Kell Industries, Inc., A Division
of Sheridan Designs 11/02/87 3,718.00
d) Answers by Riddles, Inc. 02/11/88 1,558.23
e) David Brett Sales, Inc. 03/01/88 5,565.57
f) Henry I. Siegel Company 03/16/88 2,015.44
g) Daisy of California 08/03/88 1,187.81
h) Natwest Commercial Services, Inc. 08/04/88 1,226.01
i) Republic Factors Corporation 08/08/88 3,969.52
j) The Slavenburg Corporation 09/06/88 2,426.40
Respondents that have objected contend that the debtors lack an ownership interest in their residence and cannot claim an exemption in this property under the Georgia exemption statute. Therefore, the respondents contend the debtors cannot avoid the judicial liens.
The proof of claim filed by Vidalia Federal by exhibit incorporates a copy of the security deed from the debtors which contains the following language:
Under 11 U.S.C. § 522(f)(1) a debtor is permitted to avoid a judicial lien to the extent that lien impairs an exemption to which the debtor would be entitled. Section 522(f)(1) provides in relevant part:
Pursuant to the authority granted by 11 U.S.C. § 522(b), Georgia has opted out of the federal scheme of exemptions, establishing a state created list of exemptions available to Georgia domiciled debtors. O.C.G.A. § 44-13-100(a) & (b). Accordingly, in order to determine whether a Georgia debtor may avoid a judicial lien by means of § 522(f)(1), the court must make a two-tiered analysis: first, it must determine whether the debtor is entitled to the claimed exemption under Georgia law, and second, whether the lien in fact impairs that exemption. In re Register, 37 B.R. 708 (Bankr.N.D.Ga.1983). The scope of exemptions available to Georgia debtors are set out in O.C.G.A. § 44-13-100(a) and the relevant portion applicable in this proceeding states:
First, the determination must be made that the debtor is entitled to this exemption. The objecting creditors contend that since the debtors have conveyed legal title to the property in question to Vidalia Federal, the debtors no longer have an ownership interest in the property, and the exemption under O.C.G.A. § 44-13-100(a)(1) is not available. However, the objecting creditors too narrowly define the term ...
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