Farrey v. Sanderfoot

500 U.S. 291 (1991)

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Nature of the Case

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Facts

Jeanne Farrey (W) and Gerald Sanderfoot (H) were married in 1966. They built a home on 27 acres of land and raised three children. They divorced in 1986. The divorce decree granted H sole title to the real estate, which was currently subject to a mortgage of $104,000. As part of the agreement, H was to pay W $29,208.44 to be secured by a lien against the property until paid in full. H never made the required payments nor complied with the court order but declared Chapter 7 bankruptcy. H listed the home and listed it in the bankruptcy petition as exempt homestead property to the amount of $40,000. H also filed a motion to avoid W's lien claiming that her lien impaired the homestead rights. The court denied that motion. The District Court reversed holding that the lien was avoidable as it is fixed on an interest of the debtor in the property. The Court of Appeals affirmed. The Supreme Court granted certiorari.