Date of Decision:
February 21, 2007
On stipulated facts, whether a mechanics’ lien on Debtors’ homestead was avoidable by the Bankruptcy Court where the exempt homestead was no longer property of the estate when the lien was imposed post-petition and where the materials were furnished by the lien holder post-petition but before Debtors’ case was converted from Chapter 13 to Chapter 7?
Debtors did not identify any bankruptcy law statute that would avoid the mechanics’ lien on their homestead under the facts presented. The parties would have to look to the state court to determine the impact of S.D.C.L. § 43-45-8 on the validity of the lien.
Full Bankruptcy Court Decision: