Must an owner hold a continuous interest in a property subject to a judgment lien for the lien to be avoided under the homestead exemption?

Facts: A homeowner owned residential property. A creditor obtained a judgment against the owner and recorded a judgment lien on the property. The owner sold the home to a buyer. The buyer then transferred title back to the owner as a gift. Later, the owner filed for bankruptcy.

Claim: The owner sought to clear the lien from title, claiming the property was protected under the homestead exemption since they resided and held an interest in the property when they filed for bankruptcy.

Counterclaim: The creditor sought to maintain the lien, claiming the owner was not protected under the homestead exemption since the owner did not hold a continuous interest in the property after the lien was recorded.

Holding: A federal bankruptcy court held the lien was not avoided under the homestead exemption since the owner did not hold a continuous interest in the property after the lien was recorded. [In re Kuiken (9th Cir. 2012) 484 BR 766]