11 U.S.C. § 522

Section 522(b)(2) provides the federal exemption scheme, but debtors in a state that opts out cannot choose it and are limited to exemptions under § 522(b)(3).

Sharifeh v. Fox (In re Sharif) · filed 2016-04-25(b)(2)

Accordingly, Illinois debtors are restricted to exemptions under section 522(b)(3), which, in turn, include Illinois exemption statutes.

Section 522(b) permits a debtor to choose federal or applicable state exemptions unless the state has opted out; in an opt-out state, exemptions must be claimed under state law.

James Edward Parker · filed 2019-12-12(b)

Section 522 of the Bankruptcy Code allows a debtor to elect exemptions under either federal law (as set forth in section 522(d)) or applicable state law, unless the applicable state law “does not so authorize.” In re Rogers, No. 16-02884-5-JNC, 2016 Bankr. LEXIS 3614, at *6 (Bankr. E.D.N.C. Oct. 3, 2016) (quoting 11 U.S.C. § 522(b)). North Carolina is an “opt-out” state, and all exemptions must be claimed in accordance with North Carolina law, N.C. Gen Stat. § 1C-1601(f) (2013), so the court looks to North Carolina law when determining the Debtor’s available exemptions.

Section 522(b) permits a state to opt out of the federal exemptions in § 522(d), requiring debtors in that state to use the state exemptions.

Jerry Claude Schepmann · filed 2020-01-29(b)

Kansas has opted out of the federal exemption scheme in § 522(d), making the Kansas scheme of exemptions applicable in bankruptcy to Kansas debtors.

Section 522 permits a state to use the federal bankruptcy exemptions or establish its own exemption scheme; because Ohio opted out, an Ohio debtor must claim an exemption authorized by Ohio or other nonfederal law.

John D. Temnikar · filed 2020-03-27

The Bankruptcy Code allows a debtor to claim certain property as exempt. 11 U.S.C. § 522. A state may adopt the federal exemptions contained in Section 522 or create its own exemption framework. See 11 U.S.C. § 522. Ohio has opted out of the federal exemptions. See Ohio Rev. Code § 2329.662. Therefore, any property that a debtor domiciled in Ohio seeks to claim as exempt must fall within an exemption authorized under Ohio law or nonfederal bankruptcy law.

Section 522(b) lets debtors claim either federal exemptions or applicable state and non-bankruptcy federal exemptions, subject to a state opt-out.

Brenda Delorse Justice · filed 2020-03-31(b)

Bankruptcy Code section 522 permits debtors to exempt either property specified in the federal list (contained in § 522(d)) or, instead, any “property that is exempt under federal law, other than subsection (d) of this section, or state or local law.” 11 U.S.C. § 522(b). Debtors may choose the federal list “unless the state law that is applicable to the debtor under paragraph (3)(A) of this subsection specifically does not so authorize.” Id. This last provision is referred to as the “opt-out,” and it allows states to restrict debtors’ exemptions to those enumerated in state law and non-bankruptcy federal law. Id.; Sheehan v. Peveich, 574 F.3d 248, 252 (4th Cir. 2009) (“Section 522(b)(1) affords the states the authority to restrict their respective residents to exemptions promulgated by the state legislatures, if they so choose.”). Most states, including our own, have enacted the “opt-out” provision. Thus, Ms. Justice’s exemptions are governed by West Virginia law.

Section 522(b) allows a debtor to exempt property from the bankruptcy estate and permits a state to opt out of the federal exemption scheme and establish its own exemptions.

In re Elena Hernandez · filed 2021-02-04(b)

Section 522(b) of the Bankruptcy Code (11 U.S.C. § 522(b) (2012)) allows debtors such as Hernandez to exempt certain property from the bankruptcy estate. While federal law contains provisions specifying what property may be claimed as exempt (see id. § 522(d)), individual states may opt out of the federal exemption scheme and establish their own. Illinois has exercised that option.

Section 522(b) permits a debtor to claim federal exemptions unless the state opts out and provides its own exemption scheme.

Ryan J Loughlin · filed 2021-04-16(b)

Under §522(b) of the Bankruptcy Code, a debtor is entitled to certain federal exemptions unless the state opts out and adopts its own exemptions. 11 U.S.C. §522(b). Maryland has elected to opt out of the federal exemptions. Md. Code Ann., Cts. & Jud. Proc. §11-504(g). Accordingly, whether the Debtor may claim the disputed exemptions is dictated by Maryland law.

Section 522(b) allows states to opt out of the federal exemptions listed in § 522(d), leaving debtors in an opt-out state limited to applicable state-law and other federal exemptions.

Robert Edward Dewey Shoults, Jr. and Kristina Marie Shoults · filed 2023-03-31(b), (d)

Some states allow debtors in bankruptcy to elect between claiming exemptions under federal law listed in § 522(d) and claiming exemptions under state law and federal law other than § 522(d). See 11 U.S.C. § 522(b); Waltrip v. Sawyers (In re Sawyers), 2 F.4th 1133, 1138 (8th Cir. 2021) (citing Benn, 491 F.3d at 813). Other states, including Missouri, limit debtors to exemptions under applicable state law and federal law other than § 522(d). See 11 U.S.C. § 522(b).

Section 522(d) provides the federal exemption scheme, but § 522(b)(2) allows a state to opt out, leaving debtors limited to exemptions under other federal law or applicable state or local law.

Shoults v. Brown · filed 2024-02-28(b)(2), (d)

Section 522(d) of the Code sets forth a list of property that may be exempted by the Chapter 7 debtor. “The general rule under the Bankruptcy Code is that a debtor is permitted to choose between the scheme of federal exemptions prescribed in section 522(d) of the Code or the exemptions available under other federal law and the law of the state in which the debtor is domiciled.” ... A state, however, may “opt out” of the federal Bankruptcy Code exemptions set forth in § 522(d). 11 U.S.C. § 522(b)(2). In that case, the debtor may exempt only property that is exempt under federal law other than § 522(d), or state or local law that is applicable as of the date of the bankruptcy filing.

When a state opts out of the federal exemptions in § 522(d), § 522 incorporates the state's exemption law, and an exemption must be based on a legislative enactment explicitly identifying the property as exempt.

Robert Shoults, Jr. v. Brown · filed 2025-07-15(b)(2), (d)

In Benn we construed Missouri Revised Statute § 513.427 and applied that interpretation to the incorporation of state law in 11 U.S.C. § 522. To repeat what we held in Benn, “‘exemption’ is a term of art” in federal bankruptcy statutes that “refers to laws enacted by the legislative branch which explicitly identify property” that may be exempted. 491 F.3d at 814 (emphasis added). This is the interpretation of entwined federal and state statutes, not federal common lawmaking.

Section 522(b) allows a debtor to use state exemptions when the state has opted out of the federal exemption scheme.

Jeannine Ann Crawford · filed 2025-09-17(b)

Because Tennessee has “opted out” of the federal exemptions under § 522(b), Debtor may utilize only Tennessee’s statutory exemptions.

Section 522(b) permits a state to opt out of the federal exemption scheme and require its residents to use state-law exemptions.

Lana Kay Paggen · filed 2025-12-02(b)

However, a debtor may exempt certain property from the bankruptcy estate. 11 U.S.C. § 522(b); see also Kulp v. Zeman (In re Kulp), 949 F.2d 1106, 1107 (10th Cir. 1991) (noting ability to exempt property from the estate pursuant to Section 522(b)). Section 522 contains a list of approved federal exemptions but also permits States to “opt-out” from federal exemptions and substitute State exemptions instead. Colorado elected to “opt-out” from the federal exemption scheme. Colo. Rev. Stat. § 13-54-107 (federal exemptions are “denied to residents of this state”; Colorado residents may only claim exemptions under Colorado statutes). As a result, Colorado law governs exemptions claimed by Colorado residents such as the Debtor. 11 U.S.C. § 522; Law v. Siegel, 571 U.S. 415, 425 (2014) (“when a debtor claims a state-created exemption, the exemption’s scope is determined by state law”) (emphasis in original); Kulp, 949 F.2d at 1107-08 (interpreting Colorado exemption statutes).

Section 522(b) permits a state to opt out of the Bankruptcy Code's federal exemptions, while § 522(d)(2) provides the federal motor vehicle exemption.

In re Cilley · filed 1986-04-11(b), (d)(2)

The State of New Hampshire has elected to "opt out" as permitted by 11 U.S.C. § 522(b) from the exemptions listed in the Bankruptcy Code. Accordingly, the state exemption of one thousand dollars here applies, but had New Hampshire not exercised such right of election, the value exempted would be up to twelve hundred dollars. 11 U.S.C. § 522(d)(2).

Section 522(b) allows a state to opt out of the federal exemption scheme.

In re Grant · filed 1987-04-21(b)

Thus, where Congress has allowed states to “opt out” of the federal exemption scheme, 11 U.S.C. § 522(b), and the Oregon Legislature has declared that a debtor is entitled to a homestead exemption against claims such as Andersen’s, ORS 23.240, this court feels compelled to conclude that equity mandates the same result.

Section 522(d) exemptions are unavailable to Arizona debtors because Arizona has opted out of the federal exemption scheme.

In Re Hoffpauir · filed 1990-12-31(d)

The Court also notes that the Debtors are not entitled to the exemptions provided under Section 522(d) of the Bankruptcy Code. Arizona has chosen to “opt out” of this Federal scheme of exemptions.

Section 522(d)(10)(D) provides a federal exemption for alimony needed for support, but Nevada residents cannot use it because Nevada opted out of the federal exemptions.

In Re Anders · filed 1993-03-10(d)(10)(D)

Congress specifically provided an exemption from property of the estate for the “debtor’s right to receive ... alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.” 11 U.S.C. § 522(d)(10)(D) (1992). However, the State of Nevada has “opted out” of the federal exemptions and has elected to provide a more restrictive list of exemptions applicable to Nevada residents.

Section 522(d) lists property that a Chapter 7 debtor may exempt from the bankruptcy estate.

Benn v. Cole · filed 2007-07-10(d)

On this understanding of the term “exempt,” section 513.427 opts out of the federal exemptions listed in 11 U.S.C. § 522(d), but announces no new exemptions under Missouri law.

Section 522(b) lets states require debtors to use state exemptions instead of the federal exemptions in § 522(d).

In Re Garbett · filed 2009-08-14(b)

Under § 522(b), the “opt out” provision, states are allowed to require debtors to use their exemptions rather than the federal exemptions enumerated in § 522(d).

Section 522 permits debtors to exempt certain pension benefits and allows states to create their own exemption schemes.

In Re Robert Leroy Vickers and Betty Jean Vickers, Debtors. J. Kevin Checkett, Trustee v. Robert Leroy Vickers Betty Jea · filed 1992-01-24(b)(2)(A)

The bankruptcy code specifically allows a debtor to exempt pension benefits to the extent necessary for support. 11 U.S.C. § 522(d)(10)(E) (1988). The code also allows states to opt out and create their own exemptions. 11 U.S.C. § 522(b)(2)(A).

Section 522(b) lets a state opt out of the federal exemption scheme and define property its residents may exempt in bankruptcy, including IRAs.

Dionne v. Harless (In Re Harless) · filed 1995-09-25(b)

If a state chose to “opt out” of the federal exemption scheme (see Section 522(b)(1)), limiting bankruptcy debtors to state law exemptions, it could do so by legislative act under authority delegated to it by Congress in 11 U.S.C. § 522(b).

Section 522(b) permits states to opt out of the federal bankruptcy exemptions and provide their own.

In Re Boyett · filed 2000-07-07(b)

11 U.S.C. § 522(b) permits states to opt out of the federal exemptions and set their own.

Missouri debtors cannot claim the federal exemptions in § 522(d) because Missouri has opted out of them.

Abdul-Rahim v. LaBarge (In Re Abdul-Rahim) · filed 2013-07-12(d)

Missouri has opted out of the Code's exemptions, see Mo. Rev. Stat. § 513.427, so debtors are limited to the non- 522 exemptions.

Section 522(f) allows a debtor to avoid a judicial lien to the extent that it impairs an exemption, even when the debtor uses a state exemption because the state has opted out of the federal exemption scheme.

In Re Owen · filed 1987-02-17§ 522(f)

Congress enacted 11 U.S.C. § 522(f) to allow the debtor to avoid certain liens to the extent that they impair his exemption(s), thus protecting debtor’s “fresh start.” The fact that Indiana has opted out of the Federal exemption scheme does not affect debtor’s power to avoid liens pursuant to § 522(f).

Section 522(h) gives debtors a derivative right to avoid liens only to the extent the trustee could avoid them, so a debtor cannot avoid a lien that is immune from the trustee’s avoiding powers.

Dias v. Sacramento County Welfare Department (In re Dias) · filed 1987-02-20§ 522(h)

Since the debtors’ rights to avoid liens under 11 U.S.C. § 522(h) are derivative from those of the trustee, the debtors are also unable to avoid the liens.

Section 522(f) authorizes a debtor to avoid certain liens on specified property to the extent the lien impairs an exemption.

Brown v. Cooley (In Re Cooley) · filed 1987-03-05§ 522(f)

The new code also permits a debtor to avoid certain kinds of liens encumbering particular kinds of property to the extent that the lien impairs an exemption, 11 U.S.C. § 522(f)

Section 522(f)(1) permits a debtor to avoid a judicial lien on property that would have been exempt under state law if the lien did not exist.

Green v. Snow (In Re Snow) · filed 1987-03-17§ 522(f)(1)

Accordingly, the court concludes that § 522(f)(1) permits a debtor to avoid a judicial lien on property that would have been exempt if not encumbered by the lien.

Section 522(f) authorizes avoidance of a judgment lien without eliminating the underlying judgment debt.

Gellenbeck v. Tomsic (In Re Tomsic) · filed 1987-03-19§ 522(f)

The avoidance of a judgment lien under 11 U.S.C. § 522(f) merely voids the lien created by the judgment. It has no effect on the underlying judgment debt.

Section 522(f) permits a debtor to reopen a closed bankruptcy case to pursue lien-avoidance proceedings unless the creditor was prejudiced by the delay.

In Re Quackenbos · filed 1987-03-26§ 522(f)

I will follow and apply the principle, accepted by the majority of courts, that a debtor may reopen a bankruptcy case in order to initiate lien avoidance proceedings unless the creditor has been prejudiced by the delay.

Section 522(f)(2)(B) does not permit avoidance of a lien on an automobile because an automobile is not a tool of the debtor’s trade.

In Re Harrell · filed 1987-03-31§ 522(f)(2)(B)

Based on the foregoing, the Court finds that the debtors are not entitled to avoid the lien of First State Bank in the truck, as a truck does not constitute a “tool of the trade” within the meaning of 11 U.S.C. § 522(f)(2)(B).

Section 522(c) leaves exempt property subject to a lien unless the lien is avoided under an applicable provision, and § 522(f)(1) cannot be used against a purchase-money security interest.

Matter of Brown · filed 1987-04-01§§ 522(c), 522(f)(1)

If a creditor’s lien has not been avoided under the Code sections enumerated in section 522(c)(2)(A)(i) or (ii), the debtor will not be able to exempt the encumbered property free and clear of the lien, and the lien will pass through bankruptcy unaffected. ... Under section 522(f) the debtor may avoid a judicial lien or a nonpossessory, nonpurchase-money security interest which impairs the debtor’s exemptions. Blazer’s lien on the Kirby vaccum cleaner is a purchase money security interest, therefore the Browns could not have utilized this section.

Section 522(f) permits avoidance of a judicial lien, and that avoidance reaches a related judgment lien to the extent state-law merger makes it part of the same lien.

Brennan v. Knights of Columbus Federal Credit Union (In Re Brennan) · filed 1987-04-09§ 522(f)

In the absence of any precedent to guide me, I conclude that the debtors’ avoidance of the confessed judgment vitiated the effect of the assumpsit judgment insofar as it merged with the confessed judgments.

Section 522(f) permits avoidance of qualifying nonpossessory, nonpurchase-money liens on property claimed exempt under West Virginia’s exemption statute.

In re Spurlock · filed 1987-04-13§ 522(f)

The Court concludes from this that the West Virginia Legislature intended to preserve the lien avoidance provisions of 11 U.S.C. § 522(f).

Section 522(f)(3)(B) does not impose the federal monetary cap when state law merely limits what property may be claimed as exempt and does not explicitly prohibit lien avoidance.

United States v. Ehlen (In Re Ehlen) · filed 1997-04-07(f)(3)(B)

To give proper effect to the language of § 522(f)(3)(B), state law must do more than limit what property can be claimed as exempt; it must prohibit lien avoidance explicitly Wisconsin law does not. Thus, under a plain reading of the text, § '522(f)(3) is inapplicable to debtors’ lien avoidance motion.

Section 522(f) permits the court, in a lien-avoidance proceeding, to consider whether the property claimed as exempt is actually entitled to an exemption, even when the creditor did not timely object to the exemption.

Schoonover v. Karr · filed 2002-08-20(f)(1)(A)

Accordingly, this Court concludes that it was not improper for the Bankruptcy Court to consider the validity of the subject exemption in the context of the lien avoidance proceedings.

Section 522(b) allows exemptions only from property of the estate, and § 522(f) permits avoidance of a judicial lien only when it impairs such an exemption.

Flournoy Ex Rel. Antley v. Pate (In Re Antley) · filed 1982-03-05(b), (f)

Whatever interests that the Debtor had in the funds at the moment of the filing of the case on October 1, 1981 would become property of the estate. If he had no interest at this moment of filing, there was no interest for him to claim as exempt, because exemptions come out of “property of the estate.” 11 U.S.C. § 522(b). All of Debtor’s interests in property become property of the estate; his exemptions come out of “property of the estate.” ... The Debtor never asserted any of these limited rights afforded him by these Georgia Code sections in the Municipal Court, nor has he asserted any of these limited rights to the garnishment funds in this Bankruptcy Court. Debtor has therefore failed to show that he had any “interest” in the garnishment funds “as of the commencement of the case,” and this being so, there was no interest in the garnishment funds which could become “property of the estate,” and this being so, there was no interest in the funds which could be exempted out of the estate, and this being so, Bank’s judgment lien could not be avoided under 11 U.S.C. § 522(f), because there was no exemption as to these funds for the judgment lien to impair. Insofar as the Bank’s judgment lien impairs other claimed exemptions of the Debtor, it is avoided.

Section 522(f)(1) permits avoidance of a judicial lien impairing an exemption to which the debtor would have been entitled under § 522(b), with the exemption and lien-avoidance rights determined as of the petition date and the valid exemption surviving the debtor’s post-petition death.

Ohanian v. Irwin (In Re Irwin) · filed 2006-03-02(f)(1), (b)

That is, when a motion is made under Section 522(f), the court must determine whether the claimed exemption was proper in the first place under Section 522(b) even when objections are only raised at a later motion to avoid liens. ... There is no case authority provided that suggests the right to exemption is determined with reference to any time but the date of filing. ... Indeed, it is well settled that a claimed exemption (if valid under Section 522(b) at the time of filing) survives the death of the debtor.

Section 522(f)(1)(B)(ii) permits avoidance of a qualifying lien when the debtor proves under federal law that the property is a tool of the trade and the lien impairs an exemption under subsection (b).

Cleaver v. Warford (In Re Cleaver) · filed 2009-06-11(f)(1)(B)(ii)

On remand, the debtors are entitled to try to prove that the truck is a tool of the trade as a matter of federal law and that the lien impairs an exemption to which they would otherwise be entitled.

Section 522(f) permits a debtor to avoid a lien to the extent it impairs an exemption to which the debtor would have been entitled.

In re Flowers · filed 2017-08-14(f)

A debtor may “avoid the fixing of a lien on an interest of the debtor in property to the extent that such a lien impairs an exemption to which the debtor would have been entitled.”

Section 522(b) permits a debtor to claim federal or state-law exemptions, and § 522(f) permits avoidance of a judicial lien to the extent it impairs an exemption.

Bretell v. Morrone · filed 2021-11-02(b), (f)

Generally, under section 522, a debtor may exempt funds using exemptions available either under the Bankruptcy Code or under state law. 11 U.S.C. § 522(b). States may opt out of the Bankruptcy Code exemptions, making only exemptions under state law available to the debtor. Id. North Carolina has done this. N.C. Gen Stat. § 1C-1601(f). In addition, section 522(f) of the Bankruptcy Code allows debtors to “avoid the fixing of a lien on an interest of the debtor in property to the extent that such lien impairs an exemption to which the debtor would have been entitled . . . if such lien is . . . a judicial lien.” 11 U.S.C. § 522(f). In other words, if a judicial lien impairs a debtor’s exemption, including a homestead exemption, the debtor may avoid the judicial lien to the extent it impairs that exemption. See In re Sisk, No. 11-32350, 2011 WL 6153277 (Bankr. W.D.N.C. Dec. 12, 2011).

Sections 522(b) and (c) allow estate property to be removed through applicable exemptions, but in an opt-out state the debtor is limited to the exemptions provided by state law.

Julie Lynn Roe · filed 2025-12-31(b) and (c)

Property a debtor exempts can be removed from the bankruptcy estate by applicable state or federal exemption laws. 11 U.S.C. §522(b) and (c). South Dakota is an opt-out state, meaning debtors are limited to the exemptions provided by South Dakota law. ... Therefore, Debtor’s interest in the Alimony Award is property of the bankruptcy estate and Debtor cannot exempt it under S.D.C.L. §43-45-2(9).

Section 522(f) allows a debtor to reduce a lien on exempt property so far as necessary to preserve the exemption.

Palomar v. First American Bank · filed 2013-07-11(f)

Section 522(f) allows the debtor to reduce a lien on exempt property so far as is necessary to preserve the exemption, while section 722 allows a debtor to redeem “tangible personal property intended primarily for per- sonal, family, or household use, from a lien securing a dischargeable consumer debt” by paying the current value of the lien.

Section 522(f)(1)(B)(i) lets a debtor avoid a lien impairing an exemption when the lien is a nonpossessory, nonpurchase-money security interest in listed household property used primarily personally, by family, or in the household.

Jason E. Danals and Glenda L. Danals · filed 2021-01-05(f)(1)(B)(i)

Section 522(f)(1)(B)(i) permits avoidance of a lien that impairs an exemption if the lien is “a nonpossessory, nonpurchase-money security interest in any—(i) household furnishings, households goods, wearing apparel, appliances, books . . . held primarily for the personal, family, or household use of the debtor . . . .”

Section 522 allows debtors to claim exemptions and avoid certain liens on exempt property.

Public Finance Corp. v. Lantz (In Re Lantz) · filed 1980-11-03

It is equally obvious that debtors may claim exemption rights conformably to Code Section 522, including the avoidance power.

Section 522(b)(1) permits a state to reject the federal exemptions in § 522(d), leaving debtors to use state or non-bankruptcy federal exemptions.

Opinion No. (1987) · filed 1987-04-14§§ 522(b)(1), 522(d)

Because the rejection of Federal Bankruptcy Code § 522(d) exemptions is permitted by § 522(b)(1) and because the Legislature enacted § 25-15,105 , LB 335 does not unconstitutionally supersede the federal bankruptcy laws.

Section 522(b) lets an individual debtor exempt estate property under either the federal exemptions in subsection (d), unless the applicable state has opted out, or applicable federal, state, or local exemptions.

In Re Duty · filed 1987-04-21§§ 522(b)(1), 522(b)(2)(A)

Thus, Congress, after creating a “federal” exemption in the Code, deemed it appropriate to allow each state the opportunity to “opt out” of the exemptions listed in § 522(d) or mandate its own exemption laws.

Section 522(b)(2)(A) does not exempt an interest in an ERISA-qualified plan.

In Re Ewald · filed 1987-05-01§ 522(b)(2)(A)

This Court therefore holds that any of that the Debtor’s interest which is determined to be property of the estate would not be eligible to be exempted under the provisions of Code § 522(b)(2)(A).

Section 522(b) permits an individual debtor to claim estate property exempt as otherwise allowed under applicable state law.

In Re Hlavac · filed 1987-05-21§ 522(b)

Once property comes into the estate, an individual debtor may claim the property exempt as is otherwise allowed under South Dakota law.

Section 522(b) lets a debtor choose federal or applicable state exemptions, but a state's opt-out makes the state exemptions controlling.

Eilbert v. Pelican · filed 1997-10-14§ 522(b)

Under 11 U.S.C. § 522(b), a debtor may utilize either the federal exemptions listed in § 522(d) or the applicable state exemptions, unless the state has opted out of the federal scheme. Iowa has opted out of the federal scheme. See Iowa Code § 627.10. Therefore, the debtor’s entitlement to an exemption in this case turns on Iowa law.

Section 522(b) lets a bankruptcy debtor claim the federal exemptions in § 522(d), unless the state opts out and provides its own exemptions.

Governor Plaza Associates v. Butcher (In Re Butcher) · filed 1997-10-16§ 522(b)

The Bankruptcy Code authorizes a debtor in bankruptcy to exempt from the bankruptcy estate either the property listed in 11 U.S.C. § 522(d) or, if the state elects to opt out of that provision, property exempted by the state.

Section 522(b) allows individuals to choose between the federal exemptions listed in § 522(d) and available exemptions under state or local law.

Shamban v. Masidlover · filed 1999-02-19522(b)

Section 522(b) enables individuals to choose between the Federal exemptions listed in § 522(d), or any available exemptions under State or local law.

Section 522(b) permits an opt-out state such as Kansas to choose the bankruptcy property exemptions available to its residents.

In Re Adcock · filed 2000-03-10(b)

Kansas is an “opt out” state and has the authority under 11 U.S.C. § 522(b) to create whatever property exemptions in bankruptcy it chooses.

Section 522(b) lets a debtor choose applicable state and nonbankruptcy federal exemptions instead of the federal bankruptcy exemptions in § 522(d), unless state law opts out.

In Re Hare · filed 1983-08-25(b)

Section 522(b) of the Bankruptcy Code permits a debtor to choose between the exemptions . provided by applicable state and non-bankruptcy federal law and the federal bankruptcy exemptions in § 522(d) unless applicable state law expressly denies debtors that choice. If a state does “opt-out” of the § 522(d) exemptions, the debtors in that state are limited to the exemptions provided by state law and federal non-bankruptcy law. § 522(b)(1). N.C.G.S. § lC-1601(f) denies North Carolina residents the option of claiming the federal bankruptcy exemptions in § 522(d) of the Bankruptcy Code.

Section 522(b) permits a debtor to replace a previously claimed federal exemption with a state-law exemption, but the amended state-law claim is subject to challenge in its entirety.

Bankr. L. Rep. P 75,362 in Re William Hall Eleanor Hall, Debtors. James Rigby v. William Hall Eleanor Hall · filed 1993-07-29(b)

The trustee timely objected to the amended claim. Through the amendment, the Halls forfeited any federal exemption in the residence and claimed a Washington exemption subject to challenge in its entirety. 11 U.S.C. § 522(b); Bankruptcy Rule 4003(b).

Section 522(b)(1) permits a debtor to choose federal or applicable state exemptions unless the state disallows that choice; because California opted out, California debtors must use state-law exemptions.

In Re Rolland · filed 2004-11-02(b)(1)

Section 522(b)(1) of the Code permits a debtor to choose between exempting either the property specified in section 522(d) or the property protected by federal nonbankruptcy law or state law, “unless the State law that is applicable to the debtor ... specifically does not so authorize....” 11 U.S.C. § 522(b)(1). California has chosen to “opt out” of the federal exemption scheme, so California residents filing for bankruptcy are limited to the exemptions afforded under state law.

Section 522(b) requires a debtor domiciled in Ohio to use Ohio exemption law when claiming an exemption.

In Re Domanski · filed 2006-07-20(b)

In her petition, the Debtor set forth that she is domiciled in Ohio. (Doc. No. 1). Therefore, she must look to Ohio law to exempt the Annuity. 11 U.S.C. § 522(b).

Section 522(b) lets debtors claim estate property as exempt under either the federal exemptions in § 522(d) or applicable state-law exemptions when the state has opted out.

In Re Caliri · filed 2006-08-08(b)

Section 522(b) of the Bankruptcy Code allows a debtor to claim as exempt property interests constituting property of the estate. Exemptions may be claimed either pursuant to the federal exemptions provided for in § 522(d), or by state law exemptions where a state has opted out of the federal exemption scheme.

Section 522(b) permits a debtor to claim exemptions under applicable state law when the state has opted out of the federal exemption scheme.

In Re Foreacre · filed 2006-12-29(b)

Section 522(b) of the Bankruptcy Code allows a debtor to exempt property from the bankruptcy estate. ... Arizona has “opted out” of the federal Bankruptcy Code’s exemptions; therefore, Arizona law governs homestead exemptions.

Section 522(b)(1) permits states to make generally applicable exemptions available in bankruptcy but does not authorize bankruptcy-specific state exemptions.

In Re Pontius · filed 2009-12-22(b)(1)

This court declines to find that Congress implicitly did so by passing § 522.

Section 522(b)(3)(A) selects the applicable state exemption law based on the debtor’s domicile during the specified 730-day and 180-day look-back periods, even when the property is located in another state.

In Re Arrendondo-Smith · filed 2010-07-22(b)(3)(A)

Thus, in the context of § 522(b)(3)(A) and Cal.Civ.Proc.Code § 704.710, Debtor is able to apply California exemption law ex-traterritorially to property located in Texas.

Section 522(b)(1) lets a debtor choose between the federal exemptions in § 522(d) and exemptions available under applicable state law and other federal law, so the same property cannot be claimed under both schemes at once but may be claimed under multiple state exemptions.

Bryan v. Stanton · filed 2012-03-21(b)(1)

The Bankruptcy Code allows a debtor to exempt: (1) property listed in Bankruptcy Code §522(d); or (2) property which is exempt under applicable state law and federal law other than §522(d). 11 U.S.C. §522(b)(1). ... A state may opt out of the §522(d) federal bankruptcy law exemptions. 11 U.S.C. § 522(b)(2). ... We also note that even though a party could not claim the same property as exempt under state law and Bankruptcy Code exemptions at the same time, the Debtor could (and did) claim the Annuity as exempt under multiple state statutes at once. See 11 U.S.C. §522(b)(1).

Section 522(b)(3)(A) places a debtor who has not been domiciled in one state for the preceding 730 days under the law of the state where the debtor was domiciled for the longer part of the preceding 180 days, with the applicable law measured on the petition date.

Shell · filed 2012-08-14(b)(3)(A)

Shell is subject to the exemptions of the State of Illinois applicable to an Illinois resident, effective as of July 22, 2011.

Section 522(b) permits a state to opt out of the federal exemption scheme and require debtors to use state-law exemptions.

Hamilton v. Fisher (In re Fisher) · filed 2013-01-22(b)

Subsection (b) allows states to prohibit their citizens from choosing the federal exemptions set forth in subsection (d) and to require the use of state exemptions.

Section 522(b)(3) permits a debtor who elects state exemptions to claim an applicable state-law homestead exemption against proceeds from a post-petition voluntary sale of the homestead.

In re Bellafiore · filed 2013-05-20(b)(3)

An individual debtor may elect to claim either (a) the federal exemptions pursuant to 11 U.S.C. § 522(b)(2), unless the state “opts out” of the federal exemptions, or (b) the applicable state exemptions pursuant to 11 U.S.C. § 522(b)(3). ... Based upon the foregoing, the Court finds that (1) the Debtor is entitled to claim a homestead exemption with respect to proceeds arising from the sale of the Debtor’s Real Property pursuant to 11 U.S.C. § 522(b)(3), N.Y. Deb. Cred. Law § 282 and N.Y. C.P.L.R. § 5206(a); (2) the interest of the bankruptcy estate in such sale proceeds are of inconsequential value and benefit, and therefore, not part of this bankruptcy estate; and (3) the Debtor’s former spouse is not entitled to any sum from the Debtor’s exemption proceeds at this time.

Section 522(b) lets a debtor claim either the federal exemptions or applicable state-law exemptions, including a state homestead exemption that can protect the home when it covers the property's full value.

Degiacomo v. Traverse · filed 2014-05-23(b)

Nevertheless, § 522 of the Code allows a debtor to exempt certain property, based either on an enumerated list of federal exemptions or on any alternate exemptions provided by her state. See 11 U.S.C. § 522(b); In re Cunningham, 513 F.3d 318, 323 (1st Cir. 2008); In re Hildebrandt, 320 B.R. 40, 43 (B.A.P. 1st Cir. 2005). Among the state exemptions incorporated by § 522 is the Massachusetts Homestead Act, which allows a debtor to claim an interest of up to $500,000 in a home being used by the debtor as her principal residence. In re Peirce, 483 B.R. 368, 376 (Bankr. D. Mass. 2012); see also Mass. Gen. Laws ch. 188, § 1.

Section 522(b) permits states to opt out of the federal exemption scheme and allows debtors in those states to claim applicable state-law exemptions.

Williamson v. Murray (In Re Murray) · filed 2014-11-18(b)

Under the Bankruptcy Code, most property of a debtor becomes part of the bankruptcy estate upon the filing of a petition. See 11 U.S.C. 541(a)(1). Federal law allows for debtors to exempt certain property from the estate. See 11 U.S.C. § 522(d). However, states may opt out of the list of federal exemptions and provide their own set. See 11 U.S.C. § 522(b)(2); Cohen v. Borgman (In re Borgman), 698 F.3d 1255, 1257 (10th Cir. 2012). Debtors in opt-out states may exempt from the bankruptcy estate “any property that is exempt under . . . State or local law that is applicable on the date of the filing of the petition.” 11 U.S.C. § 522(b)(3)(A). Kansas is an opt-out state. Kan. Stat. § 60-2312.

Section 522(b)(3)(A) makes a state's exemptions available only when the debtor was domiciled in that state for the required 730-day period before filing.

In re Felix · filed 2017-01-23(b)(3)(A)

In states like Ohio, that have elected to enact separate exemptions, they are only available to debtors who at the time of filing established domicile in that state during the preceding 730 days.

Section 522(b) permits debtors to exempt property, and § 522(d) lists federal exemptions that a state may opt out of in favor of its own exemptions.

In re Sullivan · filed 2017-04-24(b), (d)

The Code permits debtors to claim certain property as exempt. 11 U.S.C. § 522(b). Such an exemption excludes that property from the estate.

Section 522(b)(3)(A) directs the bankruptcy court to apply the exemption law of the debtor's specified domicile, including to out-of-state property when that state's law does not limit its reach.

Sheehan v. Ash · filed 2017-06-27(b)(3)(A)

The Court is constrained to agree that this is the plainest meaning of the statute, as well as the most liberal interpretation that feasibly may be applied to § 522(b)(3)(A).

Section 522(b)(3)(A) uses the debtor’s domicile during the 730-day period before filing to determine which state’s exemption law applies.

In re Kern · filed 2017-11-29(b)(3)(A)

Prior to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”), Section 522(b)(2) of the Bankruptcy Code provided that where property is exempt under state law, the applicable state or local law is that “place in which the debtor’s domicile has been located for the 180 days immediately preceding the date of the filing of the petition, or for a longer portion of such 180-day period than in any other place .... ” 11 U.S.C. § 522(b)(2)(A). ... BAPCPA extended the period for determining the debtor’s domicile from 180 days to 730 days. See 11 U.S.C. § 522(b)(3)(A); 4 Collier on Bankruptcy, ¶ 522.06 (Alan N. Resnick & Henry J. Sommer eds., 16th ed.).

Section 522 permits a state exemption scheme that places property beyond the reach of some creditors while leaving it available to others.

Hernandez v. Marque Medicos Fullerton, LLC · filed 2018-03-26

Such a result does not run afoul of the Bankruptcy Code, which broadly empowers states to define the scope of their exemptions. See In re Ondras, 846 F.3d 33, 35-36 (7th Cir. 1988) (holding that 11 U.S.C. § 522 does not prohibit state exemption scheme that “place[s] property beyond the reach of only certain creditors (i.e. contract creditors) while keeping the property within the reach of other creditors [i.e.] tort creditors”).

Section 522(b)(3)(A) directs a debtor to use the exemption law of the applicable domicile, and that state law may exempt property located in another state when it permits such application.

Sheehan v. Ash · filed 2018-05-04(b)(3)(A)

Put simply, we agree with the well-reasoned analysis of the district court. In its comprehensive Opinion, the court characterized the issue as, “when Congress [pursuant to 11 U.S.C. § 522(b)(3)(A)] directed particular debtors to exempt property according to the law of their prior domicile, how did it intend for that state’s law to apply?” See Opinion 9-10. ... Finally, the Opinion turned to the majority approach — the state-specific interpretation of § 522(b)(3)(A) sponsored by the Ashes — and ruled that the bankruptcy court had correctly adopted that approach. ... Sheehan offers no sound reason for us to reject the majority approach adopted by the district court. ... In these circumstances, we are satisfied to reject Sheehan’s position and adhere to that of the district court.

Section 522(b)(3)(C) sets a minimum level of protection for retirement-fund exemptions, so a broader state exemption may protect an inherited IRA.

In re Kara · filed 2017-07-13(b)(3)(C)

The effect of the Texas Legislature’s enactment is to go beyond the established minimum level of protection that Congress created when it enacted § 522(b)(3)(C).

Section 522(b)(3)(A) requires a debtor claiming a state-law exemption to have been domiciled in that state for the 730 days before filing.

In re Felix · filed 2018-04-06(b)(3)(A)

The determinative issue in the present case is whether the bankruptcy court correctly held that the debtors were domiciled in Maryland rather than Ohio for the 730 days prior to the date of the bankruptcy petition.

Section 522(b)(3)(A) governs whether a debtor may elect a state's exemption scheme based on the debtor's prior domicile.

William C. Broder · filed 2019-03-14(b)(3)(A)

The trustee first argues that Mr. Broder cannot use any of the New Hampshire exemptions because Mr. Broder testified at the meeting of creditors that he moved to Maine in 2016, and thus apparently would not be qualified to elect the New Hampshire exemptions under 11 U.S.C. § 522(b)(3(A). However, given that the only evidence properly before this Court as to when Mr. Border lived in New Hampshire is contained in Mr. Broder’s response to Question 2 of his Statement of Financial Affairs (which provides that Mr. Broder lived in Bedford New Hampshire from “10/13- 2/17”), the trustee failed to sustain his burden on this aspect of his objection. Therefore, the trustee’s wholesale objection to Mr. Broder’s use of the New Hampshire exemptions is overruled.

Section 522(b)(1) permits a debtor to use the federal exemptions unless the applicable state has opted out, in which case the state’s exemptions apply.

KARA FRANCES JENNINGS · filed 2019-09-23(b)(1)

The property that a debtor may exempt is determined under § 522 unless the applicable state opted out of the federal exemption scheme. 11 U.S.C. § 522(b)(1). Arizona has opted out of the federal exemption scheme provided in § 522(d) so only Arizona exemptions apply in this case. A.R.S. § 33-1133(B).

Section 522(b) permits debtors to choose between the federal bankruptcy exemption scheme and available state-law exemption schemes.

Metcalf v. Fitzgerald · filed 2019-09-03(b)

§ 522 of the Bankruptcy Code expressly permits debtors to choose either the bankruptcy property exemption scheme under federal law or the nonbankruptcy property exemption schemes available under state law.

Section 522(b)(3)(C) covers retirement funds held in qualifying tax-exempt accounts, but it does not bar a debtor from using § 522(b)(3) to claim a broader state-law exemption for an inherited IRA.

Lowe v. Jones · filed 2023-07-13(b)(3)(C)

Section 522(b)(3)(C) applies to “retirement funds to the extent that those funds are in a fund or account that is exempt” under certain tax code provisions. The Supreme Court held that the term “retirement funds” did not cover the inherited IRA. ... The same reasoning applies here. Debtor claimed an exemption under Texas Property Code 42.0021(c). The statute expressly applies to “a qualified savings plan that was acquired by reason of the death of another person,” i.e., an inherited account. The IRA at issue here falls within the statute. Like the In re Kara court, the bankruptcy court correctly denied and overruled Trustee’s objection. ... Given Clark’s procedural history, Trustee’s argument overstates the scope of the ruling.

Section 522(b)(3)(A) applies state-law exemptions when the debtor's state has opted out of the federal exemptions in § 522(d).

Julia A. Culver · filed 2023-10-27(b)(3)(A), (d)

The Bankruptcy Code permits a debtor to choose between the exemptions provided in 11 U.S.C. § 522(d) and the exemptions provided by the applicable state law, unless that state has chosen to opt out of the federal exemptions. 11 U.S.C. § 522(b)(3)(A). Iowa has chosen to opt out of federal exemptions. See Iowa Code § 627.10 (“A debtor to whom the law of this state applies on the date of filing of a petition in bankruptcy is not entitled to elect to exempt from property of the bankruptcy estate the property that is specified in 11 U.S.C. § 522(d).”). For this reason, Iowa homestead exemption laws govern this issue.

Section 522(b)(3)(A) permits a debtor to claim the exemption law of the debtor's domicile only after satisfying the 730-day residency requirement, with a fallback to the state where the debtor resided for most of the preceding 180-day period.

Eugene John DeMarco · filed 2024-05-17(b)(3)(A)

Under Section 522(b)(3)(A), a debtor may claim the homestead exemption of the state of his domicile on the date he filed his bankruptcy petition only if he has resided in that state for two years, or 730 days, prior to the petition date. 11 U.S.C. § 522(b)(3)(A). If a debtor has not resided in his current state of domicile for at least 730 days, then the debtor can only assert the homestead exemption available under the laws of the state in which he resided for the greater part of the six months (180 days) prior to the 730-day period before the petition date. Id.

Section 522(b)(3)(A) permits a debtor to claim the exemption laws of the state where the debtor was domiciled for the 730 days immediately preceding the bankruptcy filing.

Cynthia M. Davis · filed 2026-01-02(b)(3)(A)

Debtor may avail herself of Texas state exemption laws, as Debtor’s domicile was Texas for the 730 days immediately preceding the date of Debtor’s bankruptcy filing under 11 U.S.C. § 522(b)(3)(A).

Section 522(b) allows a debtor in bankruptcy to claim applicable state law exemptions.

In Re Garrison · filed 1989-12-12(b)

Bankruptcy occurs in Federal courts and is governed generally by Federal law; State exemptions are effective in bankruptcy only because the power to make them so is delegated by Congress to State legislatures — in effect, Federal law adopts State exemptions for Federal purposes.

Section 522(b)(1) authorizes states to define bankruptcy exemptions, including pension exemptions that ERISA does not preempt.

In Re Edward Schlein and Kay Schlein, Debtors. Edward Schlein and Kay Schlein v. George E. Mills, Jr., Trustee, Florida · filed 1993-12-02(b)(1)

Evidently Congress did not think so, because it included in the Bankruptcy Code the provision, 11 U.S.C. § 522(b)(1), that gives states the authority to define exemptions. ... Accordingly, we hold that Fla.Stat. § 222.21 (2)(a) is not preempted by ERISA.

Section 522(b)(3)(A) determines which state’s exemptions apply based on the debtor’s domicile during the period before the bankruptcy filing.

John Taro · filed 2020-05-26(b)(3)(A)

Because the petition in this case was filed on May 3, 2019, this section requires the Court to determine whether the Debtor was domiciled in Delaware on May 3, 2017. ... While the facts in this case present much to consider, the Court ultimately concludes that the evidence is not sufficient to overcome the Debtor’s intention that his domicile is, and has been, in Delaware since he purchased the Delaware Property in 2014.

Section 522(b) lets a debtor choose federal or state exemptions unless state law bars the federal choice.

In Re Wiley · filed 1995-07-31(b)

Under 11 U.S.C. § 522(b), a debtor may choose between the federal exemptions provided by § 522(d) and those provided under state law, unless state law “vetoes” the debtor’s option to choose the federal exemptions.

Section 522(b)(3)(A) permits debtors to claim applicable state exemptions, including exemptions available only in bankruptcy.

In Re Jones · filed 2010-04-22(b)(3)(A)

Through § 522(bX3), Congress has protected the rights of states to legislate in this area and to prescribe the rule of decision regarding exemptions in much the same way state law defines property to be included within the bankruptcy estate.

Section 522(b) permits states to create exemptions available only to debtors in bankruptcy.

Richardson v. Schafer (In Re Schafer) · filed 2012-08-20(b)

As explained above, however, § 522 imposes no restrictions on the concurrent authority of the states to enact bankruptcy-specific exemption statutes.

Section 522(b)(3)(C) gives debtors a retirement fund exemption without preempting state exemptions for retirement funds.

In re Pacheco · filed 2015-08-25(b)(3)(C)

The Court disagrees. Nothing in § 522 expresses an intent to occupy the field or otherwise restrict a state from providing a state exemption for a retirement fund.

A creditor may contest whether the exemption supporting lien avoidance is one the debtor would have been entitled to under § 522(b), even if the property was deemed exempt under § 522(l).

In Re Mitchell · filed 1987-11-30§ 522(f), § 522(b), § 522(l)

For all the foregoing reasons, this court holds that a creditor is permitted to contest whether the exemption on which a lien avoidance action is premised ... regardless whether the property has already been deemed exempt by virtue of Section ... 522(l).

Section 522(f) permits avoidance of a judgment lien impairing an exemption even after the lien was released, when the creditor received the exempt proceeds directly because of the lien.

Swartzendruber v. Federal Deposit Insurance Corp. (In Re Swartzendruber) · filed 1987-04-16§ 522(f)

FDIC argues there is no longer a lien because it was released and therefore the Debtor cannot use § 522(f). This exalts form over substance. FDIC received the funds as a direct result of a judgment lien.

Section 522(f)(1) lets a debtor avoid an impairing judicial lien, but it does not permit avoidance of a mortgage or other security interest.

Walker v. Fleet Consumer Discount Co. (In Re Walker) · filed 1987-04-22§ 522(f)(1)

Section 522(f)(1) allows the debtor to avoid the fixing of a judicial lien on his property to the extent the lien impairs his right to take an exemption. ... No security interest, including a mortgage, can be subject to avoidance under § 522(f)(1).

A surviving joint debtor may use an exemption that vested when the petition was filed to avoid a judicial lien under § 522(f).

In Re Costello · filed 1987-04-22§ 522(f)(1)

Once a Chapter 7 case has been reopened, a surviving joint debtor — here Thomas Costello — may claim the exemption he elected and which vested at the time the petition in bankruptcy was filed to avoid the fixing of a lien under 11 U.S.C. § 522(f).

Section 522(f)(1) cannot avoid a judicial lien unless it impairs an exemption available under § 522(b), so state-law conditions determine whether the exemption exists.

In Re Sharon Brooks, Debtor. Commercial Credit Corporation v. Brooks · filed 1987-04-28§ 522(f)(1)

In terms of section 522(f), Commercial Credit’s judicial lien does not impair a homestead exemption to which Brooks would have been otherwise entitled under subsection (b) because the timing of the debt underlying the lien governs whether Brooks is entitled to the exemption in the first place.

Under § 522(b)(2)(B), tenancy-by-the-entirety property is nonexempt to the extent joint creditors could reach it under state law.

In Re Townsend · filed 1987-05-05§ 522(b)(2)(B)

The effect of Sections 541 and 522 is to make entirety property non-exempt in the bankruptcy of one of the tenants to the extent joint creditors could have seized the entireties estate under state law — that is, to the extent that debtor and his spouse are joint obligors.

A debtor may avoid a nonpossessory, nonpurchase-money lien under § 522(f)(2)(B) on property that the state has declared exempt, including a motor vehicle used as a tool of trade.

Rainier Equipment Finance, Inc. v. Taylor (In Re Taylor) · filed 1987-05-11§§ 522(b), 522(f)(2)(B)

If a motor vehicle is exempt as a tool of trade under a state’s exemption laws then under § 522(f)(2)(B) the liens therein may be avoided.

A debtor cannot avoid a lien under § 522(f) when the property is not exempt under applicable law, because the lien does not impair an exemption to which the debtor would otherwise be entitled.

In Re Hilary · filed 1987-05-15§§ 522(f), 522(f)(2), 522(f)(2)(A)

Since the statute is unconstitutional, the debtor may not use it to claim his violin as exempt. It follows that under 11 U.S.C. § 522(f) the bank’s lien does not impair an exemption to which the debtor would otherwise be entitled.

Section 522(d)(5) permits exemption of escrowed homestead-sale proceeds, and § 522(f) permits avoidance of a lien impairing that exemption despite an alleged waiver.

In Re Austin · filed 1987-04-22§§ 522(d)(5), 522(f)

Since we hold that the escrow proceeds are property the Austins may exempt; that the attachment is transferred to the proceeds; and that the Credit Union’s lien is avoidable because it impairs an exemption, we grant the Debtor’s motion to avoid the Credit Union’s lien.

Section 522(f)(2)(A) requires property to be both exempt and household property before a nonpossessory, nonpurchase-money security interest may be avoided.

Lucas v. ITT Financial Services (In Re Lucas) · filed 1987-08-10§ 522(f)(2)(A)

Thus, in order to avoid such a security interest, the subject property must be both exempt and “household property.”

Section 522(f)(2)(B) does not permit avoidance when the secured party’s security interest is possessory.

In Re Shepler · filed 1987-08-20§ 522(f)(2)(B)

It is the conclusion of the court that the Bank’s “security interest is possessory” and the motion of the debtor to avoid the Bank’s lien should accordingly be denied.

Section 522(c)(1) does not prevent a tax lien from attaching to exempt property.

Matter of Mikrut · filed 1987-08-20§ 522(c)(1)

does not change this result.

Section 522 permits a state to opt out of the federal exemptions and substitute state-law exemptions.

In Re Stroman · filed 1987-08-20§ 522(b)

those exemptions listed under state law.

Section 522(b)(2)(B) excludes entireties property from the estate only to the extent it is exempt from process under applicable nonbankruptcy law.

In Re Ciccarello · filed 1987-08-11§ 522(b)(2)(B)

Accordingly, if there exists a creditor who holds a claim against both debtor and her non-filing spouse then the property in which debtor has an interest as a tenant by the entireties is not “exempt from process” under Florida law as to that creditor and cannot be excluded from the bankruptcy estate under § 522(b)(2)(B).

Section 522(b)(2)(B) protects an entireties interest from process when New York law makes it exempt under the stated marital-residence and hardship conditions.

Community National Bank & Trust Co. of New York v. Persky (In Re Persky) · filed 1987-09-02§ 522(b)(2)(B)

CPLR § 5240 therefore renders a judgment debtor’s possessory interest in the entireties property “exempt from process” within the meaning of 11 U.S.C. § 522(b)(2)(B) so long as (a) the non-debtor spouse is occupying the home as a principal marital residence and (b) the harm likely to result from immediate execution outweighs the benefit to the creditor.

Section 522(f)(1) does not restrict lien avoidance to liens imposed after the debtor acquires the premises.

In Re Chandler · filed 1987-09-14§ 522(f)(1)

There is no restriction in 11 U.S.C. § 522(f)(1) confining lien avoidance to only liens imposed after the debtor acquires a premises.

Section 522(b)(1) permits a state to limit debtors to exemptions provided under state law.

In Re Vogel · filed 1987-09-16§ 522(b)(1)

Because Illinois exercised its right under 11 U.S.C. § 522(b)(1) to limit Illinois debtors to the use of exemptions as provided under state law only, Ill.Rev.Stat. ch. 110, para. 12-1201, the Debtor could only exempt property from the estate as provided in the Illinois Code.

Section 522(b) supports avoidance of judgment liens that impair the debtor’s homestead exemption.

In Re Washofsky · filed 1987-09-28§ 522(b)

The judgment liens recited above impair the homestead exemption to which the Debtor is entitled under 11 U.S.C. § 522(b) and the Florida Constitution, Article X, § IV, and are hereby avoided and declared to be of no effect.

Section 522(f)(2)(A) does not avoid a perfected purchase-money security interest in household goods.

General Electric Credit Corp. v. Allegretti · filed 1987-09-28§ 522(f)(2)(A)

GECC did have a purchase money security interest in Allegretti’s bedroom set and television that is not avoidable under section 522(f) of the Federal Bankruptcy Code.

Section 522(c)(2) bars avoidance of statutory tax liens for exemption or fresh-start purposes, including under § 522(f) if the lien attached.

Verma v. First United Federal (In Re Verma) · filed 1987-09-29§§ 522(c)(2), 522(f)

Congress expressly excepted avoiding statutory tax liens for exemption or fresh start purposes.

Section 522(f) permits Chapter 12 debtors to avoid a nonpossessory, nonpurchase-money lien on exempt farm equipment.

In Re Dykstra · filed 1987-09-29§ 522(f)(2)(B)

The nonpossessory, nonpurchase-money lien of Security State Bank in the Debtors’ farm equipment claimed as exempt is avoidable pursuant to 11 U.S.C. § 522(f).

Section 522(f) permits lien avoidance but establishes no filing deadline for a § 522(f) complaint.

In Re Trevino · filed 1987-09-29§ 522(f)

However, neither the Code nor the Rules have established a time limit for the filing of a § 522(f) complaint.

Section 522(f) is federal law and permits avoidance of a lien to the extent it impairs an exemption available under federal or applicable state law; § 522(b)(1) authorizes state opt-outs.

In re Smith · filed 1987-09-25§§ 522(f), 522(b)(1)

It is clear that lien avoidance under 11 U.S.C. section 522(f) is a matter of federal law, not state law.

Section 522(f) permits a judicial lien to be reduced according to a formula based on property value, liens, exemption, and remaining equity.

Kruger v. Beneficial Commercial Corp. (In Re Kruger) · filed 1987-09-28§ 522(f)

the court finds the following methodology to be appropriate for all requests for determination and voiding of liens under §§ 506(d) and/or 522(f)

Section 522(b)(2)(A) fixes the applicable state exemption law as the law in effect on the date the bankruptcy petition is filed.

In Re Butcher · filed 1987-06-10§ 522(b)(2)(A)

Accordingly, the bankruptcy court’s holding that the date of the filing of the petition determines the applicable state exemption law will be AFFIRMED.

Section 522(b)(2)(A) permits a debtor to use property exemptions provided by applicable state or non-Code federal law.

In Re Pritchard · filed 1987-07-13§ 522(b)(2)

Under 11 U.S.C. § 522(b)(2), Debtor may of course elect to use the Minnesota State exemptions and additionally may use exemptions available under any federal statute outside of Title 11 to exempt property protected under such non-Bankruptcy Code federal exemptions.

Section 522(c)(1) leaves exempt property liable for debts excepted from discharge under § 523(a)(5).

Wallen v. Commissioner of Income Maintenance (In Re Wallen) · filed 1987-07-14§ 522(c)(1)

Here, the plaintiff has exercised that right by claiming the refund as exempt, but that property is not free from Code § 523(a)(5) debts.

Section 522(b)(2)(A) permits a debtor to exempt property exempt under federal law, while §§ 522(d)(10)(C) and (d)(11)(E) permit exemption of disability benefits.

Meadows v. Meadows (In Re Meadows) · filed 1987-07-17§§ 522(b)(2)(A), 522(d)(10)(C), 522(d)(11)(E)

U.S.C. § 522(b)(2)(A) permits a Debtor to exempt any property exempt under Federal law. 11 U.S.C. §§ 522(d)(10)(C) and (d)(ll)(E) permit a Debtor to exempt funds received as disability.

When a state opts out under § 522(b)(1), a debtor domiciled there cannot claim the federal exemptions in § 522(d) and may instead claim only the alternative exemptions allowed under § 522(b)(2)(A).

In re Jones · filed 1987-08-06§§ 522(b)(1), 522(b)(2)(A), 522(d)

Thus, an individual debtor in a Delaware bankruptcy case is not entitled to the § 522(d) list of exemptions but in lieu thereof is permitted to exempt from the bankruptcy estate any property having a fair market value of no more than $5,000.

Section 522(f)(2)(B) permits avoidance of a nonpossessory, nonpurchase-money lien on exempt tools of the trade, but not when the property is a vehicle that does not qualify as a tool under state law.

Matter of Van Pelt · filed 1987-06-29§ 522(f)(2)(B)

Hence, Telco’s liens on the vehicles cannot be avoided by means of 11 U.S.C. section 522(f)(2)(B).

Section 522(d)(6) covers modest hand tools rather than cows or expensive farm machinery, so § 522(f)(2)(B) does not authorize avoidance of liens on those assets.

In the Matter of Ronald and Marjorie Patterson, Debtors. Appeal of Abbotsford State Bank · filed 1987-07-30§§ 522(d)(5), 522(d)(6), 522(f)(2)(B)

Since cows and tractors are not tools of the trade, a lien on them can’t be avoided by virtue of 522(f)(2)(B).

Section 522(h), together with § 522(g)(1) and the exemption in § 522(d)(1), permits a debtor to use the trustee’s avoiding powers against an involuntary transfer when the statutory conditions are met.

Butler v. Lomas & Nettleton Co. (In Re Butler) · filed 1987-06-18§§ 522(h), 522(g)(1), 522(d)(1)

Pursuant to these provisions, the Plaintiffs are clearly entitled to stand in the shoes of the trustee in seeking to set aside the sale of the premises, if they can establish that they satisfy the requirements of 11 U.S.C. § 548(a)(2), as the sale of their home was an involuntary transfer, the home was never concealed, and their interest in the home could have been exempted pursuant to 11 U.S.C. § 522(d)(1).

Under § 522(f)(1), unrelated fraud in claiming exemptions does not defeat avoidance of a judicial lien impairing an exemption.

In Re Magosin · filed 1987-06-25§ 522(f)(1)

We hold that a contention that a debtor is guilty of fraud in claiming exemptions which is not proven to have any direct relationship to the avoidance of the liens in question is totally irrelevant to the determination that the liens may be avoided pursuant to 11 U.S.C. § 522(f)(1).

A lien-avoidance action under § 522(f) must be pursued by motion rather than accomplished through a Chapter 13 plan provision.

In Re Gurst · filed 1987-06-30§ 522(f)

This Paragraph, on its face, purports to effect lien avoidances, per 11 U.S.C. § 522(f), and/or declarations of secured status, per 11 U.S.C. § 506(a), which can of course be accomplished only by motion or adversarial complaint, respectively.

Section 522(c)(2)(B) means that a bankruptcy exemption does not prevent a federal tax lien from reaching the debtor’s property.

In Re Barbier · filed 1987-06-30§ 522(c)(2)(B)

Bankruptcy exemptions have no effect on the determination of the extent of a federal tax lien. 11 U.S.C. section 522(c)(2)(B).

Section 522(c) leaves exempt property liable for debts excepted from discharge under § 523(a)(5), so an exemption cannot defeat collection of that debt.

Wallen v. Commissioner of Income Maintenance (In Re Wallen) · filed 1987-07-14§ 522(c)(1)

Thus, the plaintiff is attempting to defeat the intercept process by claiming the exemption of property which is by law subject to or “liable for” the § 523(a)(5) AFDC debt owed to the State.

Section 522(f) does not permit Texas debtors to avoid a lien when the state-law exemption selected under § 522(b) does not exempt property subject to a secured lien.

Bessent v. United States · filed 1987-10-28§ 522(f)

Therefore, if one elects to claim under the Texas statute, the property would not be 522(b) exempt property and would not be exempt under the section (f) savings clause.

Section 522(d)(11)(E) exempts compensation for lost future earnings without limiting the exemption to losses resulting from bodily injury.

In Re Carson · filed 1987-11-02§ 522(d)(11)(E)

the future earnings exemption of § 522(d)(ll)(E)

Section 522(d)(1) does not permit a debtor to claim a federal homestead exemption in a limited-partnership interest when state law gives the debtor no homestead right in the partnership’s specific property.

In Re Russell · filed 1987-11-25§ 522(d)(1)

Debt- or’s exemption claim under 11 U.S.C. § 522(d)(1), is DENIED, and it is FURTHER ORDERED that Debtor is to amend his Schedule B-4 within thirty (30) days from the date of this Order.

Section 522(f)(1) permits avoidance of a judicial lien impairing an exemption, including a lien attached to the debtor’s property interest after a divorce property division.

Pederson v. Stedman (In Re Pederson) · filed 1987-09-30§ 522(f)(1)

The lien which accompanied this judgment clearly attached to “an interest of the debtor in property.” Therefore, this lien was avoidable under Section 522(f)(1).

Section 522(e) makes a debtor’s waiver of an exemption unenforceable in bankruptcy for an unsecured creditor, including when the exemption is state-created.

In Re Blair · filed 1987-10-27§§ 522(e), 522(b)(1), 522(b)(2)

Even if Merritt had established a waiver under state law, federal bankruptcy law prohibits waiver of an exemption in favor of an unsecured creditor. 11 U.S.C. § 522(e). Contrary to objector’s arguments, the protections of subsection (e) apply not just to federal but also to state-created exemption rights.

Section 522(f)(1) lets a debtor avoid a judicial lien to the extent that it impairs the debtor’s exemption.

Matter of Watterson · filed 1987-10-28§ 522(f)(1)

Section 522(f)(1) permits a debtor to avoid the fixing of a judicial lien on an interest of the debtor in property to the extent that the lien impairs the debtors’ exemption.

When a debtor elects state exemptions under § 522(b)(2), § 522(f)(2)(B) permits avoidance of nonpossessory, nonpurchase-money liens impairing exemptions in tools of trade without importing § 522(d)’s value limits.

In Re Duss · filed 1987-10-30§§ 522(b)(2), 522(f)(2)(B)

However, where a debtor has elected to use the state exemptions in accordance with § 522(b)(2), then § 522(b)(2) is also the operative exemption provision with respect to lien avoidance issues and § 522(d) does not even come into the scheme of the analysis.

Section 522(b)(2)(A) does not allow a homestead exemption in escrowed sale proceeds when the debtor retained only a surplus interest after placing the funds in trust to satisfy liens.

Barzee v. Trammel · filed 1987-11-02§ 522(b)(2)(A)

we cannot accept its determination that the Trammels’ homestead deed and subsequent Chapter 7 petition properly exempted the funds held in escrow.

Section 522(f)(1) permits avoidance of a judicial lien impairing an exemption available under § 522(b), which requires application of opted-out state exemptions.

Matter of Dixon · filed 1987-11-10§§ 522(f)(1), 522(b)(2)(A)

The judicial lien of FORD impairs Debtors’ homestead exemption and is avoided upon the authority of Title 11, U.S.C. Sec. 522(f)(1).

When a state opts out of the federal exemptions under § 522(b)(1), it may replace the § 522(d) exemptions and limit exemptions for joint debtors notwithstanding § 522(m).

In re Talmadge · filed 1987-11-17§§ 522(b)(1), 522(d), 522(m)

Instead, states are free to both create and limit exemptions for their residents.

Section 522(b)(2)(A) permits debtors to claim a state-law exemption, and § 522(f) permits avoidance of a judicial lien impairing that exemption up to its amount.

In Re Lusk · filed 1987-11-24§§ 522(b)(2)(A), 522(f)

Debtors may, pursuant to 11 U.S.C. § 522(f) and cases interpreting this section, avoid creditor’s judicial lien up to the amount of their exemption.

Section 522(f)(2)(B) permits avoidance of a nonpossessory, nonpurchase-money lien on qualifying tools of the trade; consolidating the loan destroyed the purchase-money character of the security interest.

In Re Wandler · filed 1987-08-07§ 522(f)(2)(B)

Accordingly, for the reasons stated, the Debtors’ Motion to Avoid Lien is GRANTED. The purchase-money security interest arising from Liberty National’s original $10,000.00 loan of May 3, 1978 is declared invalid.

Section 522(f)(1) permits avoidance of a judicial lien on an exempt survivorship interest when the lien impairs the exemption.

In Re Hope · filed 1987-08-31§ 522(f)(1)

If so, and if the lien impairs the debtor’s exemption, the lien is subject to avoidance under 11 U.S.C. § 522(f)(1).

Section 522(h) permits a qualifying debtor to use trustee avoidance powers, but § 522(c)(2)(B) bars using that power to avoid a properly filed tax lien on exempt property.

In Re Ridgley · filed 1987-12-04§§ 522(h), 522(c)(2)(B)

As the notice of tax lien here was properly filed, this court does agree with the IRS that the provisions of § 522(c)(2)(B) prohibit the debtors from using the power otherwise available to them under § 522(h) to avoid a tax lien on the personal property they have claimed exempt under § 522(b)(2).

Section 522(f)(1) permits a creditor to challenge whether property qualifies under § 522(b) in a lien-avoidance action, even if the creditor did not timely object under § 522(l).

In Re Montgomery · filed 1987-12-07§§ 522(b), 522(f)(1), 522(l)

This court holds that they are not so foreclosed and that their judgment liens on the debtor’s real estate (save for the Kerr County property claimed as homestead) may therefore not be avoided.

Section 522(b)(1) permits a state to opt out of the federal exemptions in § 522(d).

Knudsen v. Brock (In Re Knudsen) · filed 1987-12-04§§ 522(b)(1), 522(d)

Pursuant to 11 U.S.C. § 522(b)(1), California “opted out” of the federal exemptions granted by 11 U.S.C. § 522(d).

Section 522(b)(1) permits a state to opt out of the federal exemption scheme, leaving only the state’s mandatory exemptions and other available federal exemptions.

In Re Bowen · filed 1987-12-29§§ 522(b)(1), 522(b)(2)(A)

Therefore, South Dakota debtors are allowed only federal nonbankruptcy and state-created exemptions.

Section 522(f) permits avoidance of the portion of a judicial lien that impairs the debtor’s claimed exemption.

In Re Anthony · filed 1987-11-30§ 522(f)

The debtor is able to avoid that portion of the URA lien that impairs her $7,500 exemption.

Section 522(f)(1) permits avoidance of a judicial lien impairing a properly asserted homestead exemption under § 522(b).

In Re Richardson · filed 1987-12-10§§ 522(b), 522(f)(1)

The debtor then would have been able to bring an action pursuant to 11 U.S.C. § 522(f)(1) to avoid that lien to the extent the lien impaired his exemption when the bankruptcy was filed.

Section 522(b) permits conversion of nonexempt property into exempt property before filing without invalidating the later exemption claim.

Panuska v. Johnson (In Re Johnson) · filed 1987-12-18§ 522(b)

the nonexempt character of the source is not legally traceable to the property claimed as exempt so as to vitiate the exemption claim.

Section 522(b)(1) permits a state to opt out of the federal exemption scheme, leaving its state exemptions as the only available exemptions.

Cottrell v. Schilling (In Re Cottrell) · filed 1987-12-29§ 522(b)(1)

Kentucky opted out of the federal exemption scheme in 1980 and therefore the state scheme provides the only exemptions available to the debtors.

Section 522(f)(1) permits avoidance of a judicial lien impairing a homestead exemption even when the debtor has no equity in the property.

Matter of Ganakes · filed 1988-01-11§ 522(f)(1)

the debtor may avoid a judicial lien which impairs the homestead exemption even though the debtor lacks equity in the subject property.

Section 522(f)(1) does not permit avoidance when the lien does not diminish or impair the debtor’s exemption.

In Re Goodwin · filed 1988-01-27§ 522(f)(1)

it is beyond the scope of § 522(f)(1) to declare the liens void if the debtor’s exemption is not diminished and, therefore, not impaired by the lien.

Section 522(b)(2)(A) does not exempt an ERISA-plan interest because ERISA is not a federal exemption law under that provision.

Halverson v. MICO, Inc. (In Re Loe) · filed 1988-02-01§ 522(b)(2)(A)

Defendants’ assertion that Debtors’ interest in the Plan and Trust is exempt under 11 U.S.C. § 522(b)(2)(A) is without merit.

Section 522(f)(2)(B) imposes no value limit on tools or implements of trade, so qualifying farm implements may support lien avoidance regardless of value.

In Re Thompson · filed 1988-02-01§ 522(f)(2)(B)

There is no value limitation placed in § 522(f) with respect to what may constitute a tool or implement.