From the Editor – Reopening Closed Case

By The Honorable William Houston Brown (Retired)

Debtors could reopen case to avoid judgment lien. Rejecting judgment creditor’s argument that debtors waited too long to seek lien avoidance, the court held that reopening a closed Chapter 13 case for the purpose of debtors seeking lien avoidance was common and not prohibited. The confirmed plan had treated the creditor as unsecured and it did not object; moreover, the creditor had received payments as unsecured, and it was judicially estopped from asserting a secured claim. The estoppel effect outweighed any delay by the debtors. In re . . .