Riverbend Condo. Ass’n v. Green

Riverbend filed a Proof of Claim in the bankruptcy proceeding of debtor, owner of a condominium in Riverbend. Debtor filed a Motion to Avoid Riverbend's Lien on the grounds that after deducting the balance of the first mortgage and the Louisiana homestead exemption, there was only $8,000 left to which Riverbend's lien could attach. The bankruptcy court held that the privilege created by La. Rev. Stat. 9:1123.115(1) on a Louisiana condominium for all unpaid sums assessed by the condominium association against the condominium owner is a statutory lien (as distinguished from a security interest) and is therefore subject to bifurcation under 11 U.S.C. 1322(b)(2). Riverbend appealed the bankruptcy court's decision. The court affirmed the district court’s affirmance of the bankruptcy court’s order. View "Riverbend Condo. Ass'n v. Green" on Justia Law