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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'>A $75,000 judgment is recorded and becomes a lien on the value of the judgment debtor’s homestead property in excess of the $125,000 homestead exemption. There are no other liens on the property. Six months later, the judgment debtor files a chapter 7 bankruptcy case and obtains a discharge. What effect does the bkr discharge have on the judgment? <o:p></o:p></span></font></p><p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'><o:p> </o:p></span></font></p><p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'>As I understand it, the discharge eliminates unsecured debts, but not secured debts. So, the judgment is still owed and is a lien on the homestead property, but can only be collected against the value in excess of the homestead exemption. But does the bkr discharge fix in time when that excess is calculated? Let’s say that at the time the bkr case is filed the homestead has a market value of $150,000. But five years after the bkr discharge, the judgment creditor has the sheriff levy on the homestead property, which is now worth $250,000. How much of the judgment can the judgment creditor collect? The $25,000 excess value at the time of bkr filing? Or up to the $125,000 excess value at the time of levy? Or is there another possibility. <o:p></o:p></span></font></p><p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'><o:p> </o:p></span></font></p><p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'>I seem to recall a case somewhere, maybe a bkr case, that said that after discharge the creditor could only collect the judgment up to the amount of the excess value at the time of the bkr filing, but I can’t locate it and am not sure I remember it accurately. I would very much appreciate anyone’s thoughts.<o:p></o:p></span></font></p><p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'><o:p> </o:p></span></font></p><p class=MsoNormal><font size=4 color="#1f497d" face=Arial><span style='font-size:13.0pt;font-family:"Arial","sans-serif";color:#1F497D'>Rod Harmon</span></font><o:p></o:p></p><p class=MsoNormal><b><font size=4 color="#1f497d" face=Arial><span style='font-size:13.0pt;font-family:"Arial","sans-serif";color:#1F497D;font-weight:bold'> </span></font></b><o:p></o:p></p><p class=MsoNormal><b><font size=4 color="#1f497d" face=Arial><span style='font-size:13.0pt;font-family:"Arial","sans-serif";color:#1F497D;font-weight:bold'>RODNEY T. HARMON</span></font></b><o:p></o:p></p><p class=MsoNormal><b><font size=2 color="#1f497d" face=Arial><span style='font-size:11.0pt;font-family:"Arial","sans-serif";color:#1F497D;font-weight:bold'> Attorney at Law</span></font></b><o:p></o:p></p><p class=MsoNormal><font size=2 color="#1f497d" face=Arial><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'> P.O. Box 1066</span></font><o:p></o:p></p><p class=MsoNormal><font size=2 color="#1f497d" face=Arial><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'> Bothell, WA 98041</span></font><o:p></o:p></p><p class=MsoNormal><font size=2 color="#1f497d" face=Arial><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'> Tel: (425) 402-7800</span></font><o:p></o:p></p><p class=MsoNormal><font size=2 color="#1f497d" face=Arial><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'> Fax: (425) 458-9096</span></font><o:p></o:p></p><p class=MsoNormal><font size=2 color="#1f497d" face=Arial><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'> </span></font><font size=2 color="#1f497d" face=Arial><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'> </span></font><font size=2 color="#1f497d" face=Arial><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'><a href="http://www.rodharmon.com">www.rodharmon.com</a></span></font><o:p></o:p></p><p class=MsoNormal><font size=2 color="#1f497d" face=Arial><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'> </span></font><font size=2 color="#1f497d" face=Arial><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'> </span></font><font size=2 color="#1f497d" face=Arial><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'><a href="mailto:rodharmon@msn.com">rodharmon@msn.com</a></span></font><o:p></o:p></p><p class=MsoNormal style='margin-top:6.0pt'><font size=2 face=Calibri><span style='font-size:11.0pt'><o:p> </o:p></span></font></p><p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'><o:p> </o:p></span></font></p></div></body></html>