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Schwab v. Krauss

New York Supreme Court, Appellate Division
165 A.D.2d 214 (1991)


Facts

In July 1984, Edward Krauss (defendant) obtained a judgment against Allen Abrahams. Allen, along with his wife, Helen, owned property as tenants by the entirety. In May 1985, the Abrahamses filed a joint bankruptcy petition, but Allen’s debt to Krauss was not discharged. Allen subsequently died, and in March 1988, Helen’s bankruptcy trustee conveyed a deed to the property to Moshe Schwab (plaintiff). In April 1988, Krauss attempted to exercise the judgment lien he had acquired on the property purchased by Schwab. Schwab filed suit, seeking a judgment declaring him the owner of the property free from Krauss’s lien. Although the trial court initially found in favor of Krauss, upon reargument, it found for Schwab. The trial court concluded that the tenancy by the entirety continued to exist after the bankruptcy filing and that Helen took Allen’s interest upon his death, resulting in a fee simple free from Krauss’s lien. Krauss subsequently appealed.

Rule of Law

Issue

Holding and Reasoning (Levine, J.)

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