Case Citation
Legal Case Name

Schwab v. Krauss Case Brief

Appellate Division of the Supreme Court of the State of New York1991Docket #62424885
165 A.D.2d 214 566 N.Y.S.2d 974 1991 N.Y. App. Div. LEXIS 2748

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Case Brief Summary & Legal Analysis

General Brief
3 min read

tl;dr: A creditor’s lien on one spouse’s interest in property held as tenants by the entirety is extinguished when that spouse dies. The court held that a joint bankruptcy filing by the couple does not sever the tenancy or alter this outcome.

Legal Significance: This case establishes that a joint bankruptcy filing, without a court-ordered consolidation of estates, does not sever a tenancy by the entirety. The common law right of survivorship is preserved, protecting the property from the individual creditors of the deceased spouse.

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Case Facts & Court Holding

Key Facts & Case Background

Allen and Helen Abrahams owned real property as tenants by the entirety. Defendant Krauss obtained a money judgment against Allen Abrahams individually and docketed it, creating a lien on Allen’s interest in the property. Subsequently, the Abrahamses filed a joint petition in bankruptcy under 11 U.S.C. § 302. Allen’s debt to Krauss was not discharged. While the bankruptcy was pending, Allen Abrahams died. Plaintiffs Schwab later purchased the property from Helen Abrahams’ bankruptcy trustee. When Krauss attempted to execute his judgment lien against the property, the Schwabs commenced an action seeking a declaration that their title was free of the lien. The trial court ultimately granted summary judgment to the plaintiffs, and the defendant appealed, arguing that the joint bankruptcy filing had severed the tenancy by the entirety.

Court Holding & Legal Precedent

Issue: Does the filing of a joint bankruptcy petition by spouses holding property as tenants by the entirety sever the tenancy, thereby allowing a creditor’s lien against one spouse’s interest to survive that spouse’s death?

No. The court affirmed summary judgment for the plaintiffs, holding that the Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidat

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Legal Issue

Does the filing of a joint bankruptcy petition by spouses holding property as tenants by the entirety sever the tenancy, thereby allowing a creditor’s lien against one spouse’s interest to survive that spouse’s death?

Conclusion

This case clarifies that the powerful right of survivorship inherent in a Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation

Legal Rule

The filing of a joint bankruptcy petition pursuant to 11 U.S.C. § Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt

Legal Analysis

The court's analysis centered on the unique characteristics of a tenancy by Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad min

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Flash Summary

  • The filing of a joint bankruptcy petition does not automatically sever
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in v

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