David C. Allred

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UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re
DAVID C. ALLRED, 	No. 10-11895
Debtor(s).
______________________________________/
Memorandum on Motion to Avoid Judgment Lien
_________________
Debtor David C. Allred is 70 years old, and is therefore entitled to a homestead exemption of
$175,000.00 pursuant to California Code of Civil Procedure § 704.730(a)(3)(A). He has claimed the
exemption in his one-quarter interest in the property in which he resides, 334 S. Hartson Street, Napa.
California. 	This interest is worth about $80,000.00. He has moved the court for avoidance, pursuant
to § 522(f)(1)(A) of the Bankruptcy Code, of a judgment lien on the property held by creditor
Consumer Credit Recovery Service.
The creditor opposes the motion based on a fact Allred concedes: the judgment lien attached
before Allred began to live at the property. It argues that California Code of Civil Procedure §
“704.710(3)(c)” limits the homestead exemption to property in which Allred resided on the day the
judgment lien attached.1
The Bankruptcy Code allows debtors to avoid pre-attached liens even though the liens would
1There is no such statute; the creditor means § 704.710(c).
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Entered on Docket
January 14, 2011
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 10-11895 Doc# 24 Filed: 01/14/11 Entered: 01/14/11 17:16:15 Page 1 of 2

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have remained unimpaired under California homestead law. In re Pike, 243 B.R. 66, 72 (9th Cir. BAP
1999). A judgment lien impairs an exemption if the debtor would be entitled to an exemption under
state law if the lien did not exist. 	Owen v. Owen, 500 U.S. 305, 311 (1991); In re Hastings, 185 B.R.
811, 814 (9th Cir. BAP 1995). Since Allred would be entitled exempt his interest in the property in full
if the creditor’s lien did not exist, the lien impairs his exemption and is avoidable.
For the foregoing reasons, the objection will be overruled and the motion granted. Counsel for
Allred shall submit an appropriate form of order.
Dated: January 14, 2011
SAlan Jaroslovsky
U.S. Bankruptcy Judge
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Case: 10-11895 Doc# 24 Filed: 01/14/11 Entered: 01/14/11 17:16:15 Page 2 of 2