8th Circ. Affirms Reopening Of Ch. 7 To Avoid $256K Lien

Law360 (July 6, 2021, 3:17 p.m. EDT) – Eighth Circuit upheld the rulings of two lower courts in finding that a Chapter 7 case was properly reopened to set aside a $ 256,000 judicial lien on the damaged home by the fire of a Missouri debtor.

In an opinion on Friday, United States Circuit Court Judge L. Steven Grasz said the Eastern District of Missouri Bankruptcy Court was correct in allowing debtor Ruby Jeane Sawyers to reopen her case of Chapter 7 in May 2018 to avoid the lien of a creditor who had obtained the lien of $ 256,000 against the Sawyers property in a Missouri state lawsuit for breach of contract. ..

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