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RBS Citizens, N.A. v. Ouhrabka

Vermont Supreme Court

30 A.3d 1266 (2011)

Facts

Ouhrabka (defendant) was personally liable for a large business debt amounting to millions of dollars to his creditor, RBS Citizens, N.A. (plaintiff). In securing this debt, Ouhrabka had submitted a personal financial statement that included his joint ownership with his wife as tenants in entirety of a property worth $250,000. When Ouhrabka’s business was placed in receivership, RBS filed a complaint against Ouhrabka seeking to recover the balance of his debts that would not be covered by the liquidation of his business. RBS filed a motion requesting a writ of attachment against Ouhrabka’s real estate holdings, including the property he owned with his wife. The lower court denied the writ as to that property, holding that a creditor cannot attach against a property held jointly by a debtor and a nondebtor as tenants by the entirety. RBS appealed.

Rule of Law

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Issue

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Holding and Reasoning (Reiber, C.J.)

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