Anderson v. Stacey (In re Anderson)
UNPUBLISHED
Defendant had obtained a judgment against debtor/husband, and his lien attached to real property jointly owned by husband, wife, and husband's mother. Defendant foreclosed his lien, and purchased husband's interest in the property in the foreclosure sale. Prior to expiration of husband's six-month redemption period under state law, husband and wife filed their chapter 7 bankruptcy petition. Husband died shortly thereafter. In wife's adversary proceeding, the court held that the automatic stay had tolled the running of the redemption period. The court then considered whether the joint tenancy between husband, wife, and mother had been severed by the sheriff's sale, and concluded that an execution purchaser does not acquire title to the property until after the redemption period. Therefore, when husband died during the bankruptcy, his interest in the property automatically passed to his wife and mother. Finally, the court held that wife could avoid defendant's lien pursuant to 11 U.S.C. § 522(f) because it impaired the homestead exemption provided her by Utah law.