In a brief but detailed analysis the Rhode Island Bankruptcy Court has explained the proper way for debtors’ counsel to calculate whether judicial liens are avoidable. The decision did not change the result in the case-the liens were dischargeable-but the court hoped the explanation would clear up widespread confusion among debtors’ counsel as to the correct way to perform the necessary calculations and present such motions.
Since this writer is not the bankruptcy lawyer in the firm (that would be Lynda Laing), a reading of the 10 page decision caused MEGO (“my eyes glaze over”). However, it appears to be a small but significant decision for bankruptcy practitioners so I recommend they read it.
In re Derocha, BK No. 13-10070, 2014 WL 116534 (Bankr.D.R.I. Jan. 14, 2014)
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