Secured Transactions in Bankruptcy
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Benchnotes March 2025
Journal Issue:
Without Levy, a Recorded Judgment Lien Is Unperfected in Some States
In New Jersey, a trustee’s hypothetical judicial lien has priority over a judgment lien if the judgment lienholder has not made a levy on the property.
Court:
Alternatives to Bankruptcy, Including Receiverships and ABCs
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A Judgment Lien Isn’t Created by Filing a UCC Financing Statement, Judge Furay Says
To obtain a judgment lien, filing a UCC financing statement is no substitute for docketing a judgment.
A Mortgage Deficiency Judgment Is a Judicial Lien Subject to Avoidance Under § 522(f)
A deficiency judgment resulting from mortgage foreclosure is not ‘a judgment arising out of a mortgage foreclosure’ and can be avoided as a judgment lien.
Court:
A Consensual Judgment Is a Judgment Lien Subject to Avoidance Under Section 522(f)
‘Obtained by’ legal proceedings, a consent judgment is still a judgment lien that can be avoided if it impairs an exemption.
Remote Control: Not Just for Toys Anymore
A Lender Can’t Have a Lien on Avoidance Actions, Judge Thad Collins Says
The Eighth Circuit had held that a debtor has an ‘inchoate’ property interest in avoidance actions before bankruptcy, but Judge Collins ruled that a lender can’t have a lien.