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How a loan dispute led to a property transfer
A property transfer for just $1 has failed to shield a Kentucky couple’s land from a creditor seeking to recover an unpaid debt. In an October 23, 2026, opinion, the Kentucky Court of Appeals upheld an order allowing property assessed at approximately $210,000 to be sold to satisfy a judgment of $177,667.88, plus applicable costs and attorney fees. The dispute began when Members 1st Federal Credit Union filed a complaint against Goodman and Hill in Lewis Circuit Court on July 24, 2024, alleging that they had defaulted on their financial obligations. The credit union initially claimed $170,073.48 in principal, $32,857.73 in interest and $2,445.26 in late charges, according to the appellate opinion. Following that transaction, the outstanding debt was reduced to $177,667.88. On May 19, 2025, the Lewis Circuit Court granted summary judgment in favour of Members 1st Federal Credit Union against Goodman and Hill for $177,667.88, plus costs and attorney fees. A separate default judgment entered on June 6, 2025, voided the company’s interest in the property. However, the circuit court rejected their proposed $30,000 bond as insufficient. On September 8, 2025, the circuit court ruled that the credit union’s judgment liens were valid and superior to other asserted interests in the property. In its October 23 opinion, the Kentucky Court of Appeals found no basis to reverse the lower court’s decision. The panel noted that it had already upheld the underlying judgment against Goodman and Hill in a separate appeal on May 1, 2026.
The dispute involved Kimberly A Goodman, David W Hill and their company, Woodsmoke Acres LLC, according to the court’s opinion available on Justia . The loan had been secured by a mortgage on property in Pennsylvania. The credit union subsequently acquired the Pennsylvania property through a short sale to reduce its financial loss. The court also voided the transfer of the property to Woodsmoke Acres. Goodman and Hill appealed the underlying judgment and attempted to prevent enforcement by submitting a supersedeas bond, which can suspend enforcement while an appeal is pending. With enforcement not suspended, the credit union pursued a further order allowing the Vanceburg property to be sold to recover the outstanding amount. It directed the Master Commissioner to sell the property and apply the proceeds towards the judgment. That decision also affirmed the order setting aside the transfer to Woodsmoke Acres.
The ruling followed earlier proceedings that voided the transfer, allowing the credit union to pursue the property despite the change in ownership.