LONG & WIFE
v.
BULLARD
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Long and his wife challenged a lower court decision regarding whether a creditor's lien on property survived the debtor's discharge in bankruptcy. The Supreme Court affirmed that a creditor who neither proved his debt in the bankruptcy proceeding nor released his lien retained his security interest despite the debtor's discharge, and that the homestead exemption did not eliminate liens created by contract prior to bankruptcy. The Court held that a discharge in bankruptcy releases only those debts that were or could have been proved in the bankruptcy proceeding, leaving pre-existing liens unaffected.
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Mr. Chief Justice ’Waite,
after stating the case as above reported, delivered the opinion of the court..
It perhaps sufficiently appears that a determination of the question, as to the effect of the discharge in bankruptcy upon the right of Bullard to-enforce a lien upon the property in existence at the time of the commencement of the proceedings in bankruptcy, was necessarily: involved in the decision of the Supreme Court which-is here .under review, and that this decision was. adverse to the right set up by Long. This being the case, we have'jurisdiction, but there cannot be a doubt of the correctness of the decision. By § 5119' of the Revised Statutes the discharge releases the bankrupt only from debts’which were or .might have been "proved, and by § 50 Y5 debts secured by mortgage or pledge can only be proved for the balance remaining due after1 deducting the value of the security, unless all claim ’ upon the security is released. Here the creditor neither proved his,debt in bankruptcy nor released his lien. Consequently his security was preserved notwithstanding the bankruptcy of. his debtor. McHenry v. La Société Française, 95 U. S. 58; Dudley v. Easton, 104 U. S. 99, 103; Porter v. Lazear, 109 U. S. 84, 86. The dispute in the court below was as to the existence of the lien at the time of the commencement of the proceedings in bankruptcy. That depended entirely on the. State laws, as to which the judgment of the State court is final and not subject to review here.
The setting apart of the homestead to the bankrupt under § 5045 of the Revised Statutes did not relieve the property from the óperatioii of liens created by contract before the bankruptcy. It is not the decree in this case which constitutes the lien on the property, but the conveyance of Long and wife before the bankruptcy.
The judgment is Affirmed.
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Alphonso McCRAY v. Adams, 529 So. 2d 1131 (Fla. 1st DCA 1988)…and after notice and a hearing, the court determines such debt to be excepted from discharge under paragraph (2), (4), or (6), as the case may be, of subsection (a) of this section. .In re Weathers, 15 B.R. 945 (Bankr.D.Kan.1981); Long v. Bullard, 117 U.S. 617, 6 S.Ct. 917, 29 L.Ed. 1004 (1886); In the Matter of Tarnow, 749 F. 2d 464 (7th Cir.1984); In re Atoka Agricultural Systems, Inc. v. United States of America, 39 B.R. 474 (Bankr.E.D.Va.1984). . Farish v. Banker Multiple Line Insurance Company, 425…
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Louisville Joint Stock Land Bank v. Radford, 295 U.S. 555 (U.S. 1935)…f 1867, as well as that of 1898. But unless the mortgagee released his security, in order to prove in bankruptcy for the full amount of the debt, a [*583] mortgage even of exempt property was not disturbed by bankfuptcy proceedings. Long v. Bullard, 117 U. S. 617.13 No bankruptcy act had undertaken to modify in the interest of either the debtor or other creditors any substantive right of the holder of a mortgage valid under federal law. Supervening bankruptcy had, in the interest of other creditors, affecte…
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Dewsnup v. Timm, 502 U.S. 410 (U.S. 1992)…) and (10) (1976 ed.), no provision of the pre-Code [*419] statute permitted involuntary reduction of the amount of a creditor’s lien for any reason other than payment on the debt. Our cases reveal the Court’s concern about this. In Long v. Bullard, 117 U. S. 617, 620-621 (1886), the Court held that a discharge in bankruptcy does not release real estate of the debtor from the lien of a mortgage created by him before the bankruptcy. And in Louisville Joint Stock Land Bank v. Radford, 295 U. S. 555 (1935), the…
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Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- McHenry v. La Société Française D'Epargnes, 95 U.S. 58 (U.S. 1877)
- Dudley v. Easton, 104 U.S. 99 (U.S. 1881)
- Porter v. Lazear, 109 U.S. 84 (U.S. 1883)