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Thomasville Furniture Industries, Inc. v. Wendling Bros., Inc. (In re Wendling Bros., Inc.)
Citations: 8 B.R. 254; 1981 Bankr. LEXIS 4984Docket: Bankruptcy Nos. 80 B 8830, 80 A 1562
Court: United States Bankruptcy Court, N.D. Illinois; February 3, 1981; Us Bankruptcy; United States Bankruptcy Court
The court addressed a complaint filed by Thomasville Furniture Industries, Inc., Venture Furniture (a division of Lane Co. Inc.), and American-Drew, Inc., seeking to modify the automatic stay under 11 U.S.C. § 362(a) imposed during the bankruptcy proceedings of the debtor. The plaintiffs are judgment creditors who had writs of execution issued against the debtor, resulting in the sheriff seizing certain assets and inventory, which remain unsold. The key issue was whether the execution lien from these writs expired 90 days after issuance. The debtor argued that the liens did expire, thus preventing the sheriff from selling the seized property. However, the court found that although Illinois law states executory liens typically expire on the return day of the writ, this does not apply to property that has already been properly levied upon before that date. The court concluded that since the sheriff seized the debtor's property before the return date of the writs, the liens remained valid. Citing relevant Illinois law and precedents, the court determined that the sheriff retains the authority to sell the seized property despite the expiration of the writs, as long as the property was lawfully levied before the return day. Consequently, the court granted the plaintiffs' complaint to modify the stay, allowing the sheriff to sell the seized property and apply the proceeds to the outstanding judgments. The debtor's motion to dismiss the complaint was denied.