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In re O'Dell (Case No. 04-03415) 3/8/2005

The Court granted the debtor's motion to avoid lien and for turnover of garnished wages because the debtor is entitled to avoid the lien of writ of fieri facias pursuant to 11 U.S.C. § 522(f) because it impaired an exemption to which the debtor would otherwise be entitled.  Virginia’s homestead exemption can “trump” the lien from the writ of fieri facias because before the Court orders the garnishee to make payment to the judgment creditor or the garnishee pays the withheld funds to the Court, the debtor still maintains an interest in the garnished wages withheld by the garnishee.  Accordingly, the Court ordered that the garnished wages be returned to the debtor as property exempted from the bankruptcy estate under the homestead exemption pursuant to Va. Code Ann. § 34-4.

Date: 
Tuesday, March 8, 2005
Category: 
Exemptions
Lien Avoidance
Chapter: 
13