11 U.S.C. § 522

Section 522(f) permits avoidance of nonpossessory, nonpurchase-money liens on exempt household goods when the state restriction denying that avoidance is unconstitutional.

In re Sapp · filed 1987-12-04§ 522(f)

The Court rules, as a conclusion of law, that Section 1 on page 15 of the Conference Committee substitute For House Bill No. 484 as Codified in Revised Supplement 1987 to now be Section 513.436 to be unconstitutional and therefore not effective to deny avoidance of the non-possessory and non-purchase money lien of ITT as to the household furnishings, household goods and appliances of debtors.

Section 522(c) preempts a state rent-liability rule that would allow a landlord to reach exempt property outside the federal exceptions.

Ible v. Commonwealth · filed 1987-12-12§ 522(c)

It also places rent creditors in the class of creditors which may reach exempt property thereby impermissively altering the federal law found in 11 U.S.C. § 522(c).

Section 522(f)(1) does not affect lien rights when applicable state law, rather than federal lien-avoidance rules, determines whether the homestead is impaired.

In Re Alejandro · filed 1987-12-16§ 522(f)(1)

In neither event does § 522(f) affect the rights of either the debtors or the judgment creditors. Those rights are dictated entirely by State law.

Section 522 treats an exempt automobile as protected property, allowing the debtor to retain its sale proceeds.

In Re Bagnato · filed 1987-12-21§ 522

The automobile is exempt property under New York Debtor and Creditor Law § 282 and 11 U.S.C. § 522 and the debtor is entitled to keep the proceeds from the sale of the vehicle.

Section 522(b)(1) permits Kentucky to remove its debtors from the federal exemption scheme.

In Re Blizard · filed 1988-01-15§ 522(b)(1)

Pursuant to 11 U.S.C. Section 522(b)(1) and K.R.S. 427.170, Kentucky has removed Kentucky debtors from the federal exemption scheme.

Section 522(h) and § 522(g)(1) allow a debtor to step into the trustee’s shoes to avoid a qualifying sheriff’s-sale transfer.

Cole v. Sovran Mortgage Corp. (In Re Cole) · filed 1988-01-15§§ 522(h), 522(g)(1)

the Debtor is entitled to step into the shoes of the trustee in a sheriff’s sale situation by means of 11 U.S.C. §§ 522(h) and (g)(1).

Section 522(f) does not permit avoidance of a purchase-money security interest merely because the loan was refinanced when the identical collateral retained its purchase-money character.

Billings v. Avco Colorado Industrial Bank · filed 1988-01-27§ 522(f)

When a debt secured by a purchase money security interest is refinanced, and the identical collateral remains as security for the refinanced debt, then neither the debt nor the security has changed its essential character.

Section 522(f)(1) permits a debtor to avoid a judicial lien impairing her homestead exemption.

Nikki Dee Maus, Debtor-Appellee v. Maus · filed 1988-01-28§ 522(f)(1)

In sum, we hold that Nikki Maus may avoid Jesse’s judicial lien on her homestead under section 522(f)(1).

Under § 522(f)(2)(B), an item qualifies as a debtor’s tool of trade when the debtor regularly uses it in the trade, business, or profession and it is reasonably necessary to that work; indispensability is not required.

Matter of Shipman · filed 1994-05-04(f)(2)(B)

To determine whether or not a particular item constitutes a tool of the trade for the purposes of § 522(f)(2)(B), the court must ask: is the item actually used by the debtor in its trade, business, or profession on a regular basis and is it reasonably necessary to that trade, business, or profession?

Section 522(f)(2)(B) permits avoidance of a nonpossessory, nonpurchase-money security interest in tools of the trade only when the debtor proves the property qualifies as tools of the trade.

In Re Henke · filed 2003-05-06(f)(2)(B)

The Debtors have failed to meet their burden of proving by a preponderance of the evidence' that the secured property at issue constitutes tools of the trade, and therefore, the Debtors may not avoid FSA’s hen in the property under section 522(f).

Section 522(f)(2)(B) permits avoidance of a lien on an implement or tool of the debtor's trade, and an over-the-road trucker's cab-tractor qualifies as such a tool.

Pockat v. Thorp Finance Corp. (In Re Pockat) · filed 1980-06-10(f)(2)(B)

That § 522(f)(2)(B) provides voiding the lien on implements, professional books or tools of the trade of the debtor or the trade of a dependent of the debtor. Certainly a debtor, in order to be an over-the-road trucker and continue in that field of trucking, would have to have the cab-tractor available to him to make his living as much as any printer would need his printing tools, or an electrician his electrical tools, or any other mechanic the tools used by him in making a living.

Section 522(f)(2)(B) permits avoidance of a qualifying lien on tools of trade, but a vehicle used by a real estate agent is not a tool of trade absent facts showing unique occupational dependence, task-specific modification, and use beyond ordinary commuting.

In Re Meany · filed 1982-12-21(f)(2)(B)

Of course, whether or not a vehicle is a tool of trade must be decided case by case after considering all the facts and circumstances. However, Judge Pusateri’s rationale is applicable herein. Judge Pusateri started with the premise that vehicles generally are not tools of trade in Kansas, since the Kansas legislature, like Congress, provided separate exemptions for tools of trade and means of conveyance. But when the occupation is uniquely dependent on the use of the vehicle; when the vehicle is modified to make it specifically suited for such a task; and when the vehicle is not primarily used to travel to and from work, the vehicle may be a tool of trade. ... Here the debtors allege that Patricia Meany’s occupation as a real estate agent is uniquely dependent on the use of the ear because buyers expect the agent to drive them to sites. While the common practice may be for agents to drive, the debtors have not demonstrated that Patricia Meany cannot continue in her occupation without the use of this car. Moreover, there is no evidence that the car has been modified to make it specifically suited to carry clientele; nor is there evidence that the car is primarily used as a means of conveyance. ... However, considering the instant facts, the better view herein is that this car is not a tool of trade. ... This Court hesitates to open the floodgates to allow potentially inconvenienced debtors to avoid liens on their cars. Section 522(f) was meant to be strictly construed. ... IT IS THEREFORE, BY THE COURT, ORDERED That the Debtors’ Motion to Avoid the Lien be and the same is hereby DENIED.

Section 522(a)(1)'s definition of “dependent” applies within § 522 and does not control the interpretation of state exemption statutes.

In re Shinners · filed 1986-03-25(a)(1)

While this argument appears to have merit, the Court notes that the initial language Section 522(a) limits the asserted definition of “dependent” to Section 522. It does not appear to contemplate that the definition will be employed in the interpretation of state exemption statutes. This is made especially apparent in view of the fact that states were permitted to “opt-out” of the federal exemption scheme. Accordingly, it must be concluded that this argument is without merit.

Section 522(f)(2)(B) permits a debtor to avoid liens on farm implements and tools that are reasonably necessary for the debtor's farming operations.

Production Credit Association of St. Cloud v. LaFond · filed 1986-05-14(f)(2)(B)

The literal meaning of the tools of the trade subsection indicates an intention to allow avoidance of liens on large farm implements and tools, items necessary to a debtor-farmer's new beginning.

Section 522(f)(2)(B) permits a debtor to avoid a lien on tools or implements of the trade when the items are reasonably necessary to the debtor’s trade or business.

Production Credit Ass'n of St. Cloud v. LaFond (In re LaFond) · filed 1986-05-14(f)(2)(B)

We agree with the PCA that it is not enough that equipment be commonly understood as tools of a certain trade; instead, “the test is the reasonable necessity of the item to the debtor’s trade or business.”

Section 522(f) permits a debtor to avoid a lien to the extent it impairs an exemption available under subsection (b).

Dominion Bank of the Cumberlands v. Nuckolls · filed 1987-03-19(f)(2)(B)

11 U.S.C. § 522(f) provides for lien avoidance “to the extent that such lien impairs an exemption to which the debtor would have been entitled under subsection (b) of this section.” 11 U.S.C. § 522(b) sets forth a federal exemption system for which a state can substitute its own exemption system. Virginia has exercised this option. Va.Code § 34-3.1 (1984). Thus the threshold question is whether the restaurant equipment qualifies for exemption under the Virginia exemption system. ... This court is of the opinion that the Virginia Code and Dummitt clearly indicate that the restaurant equipment does not qualify for exemption as a mechanic’s “tools of the trade”; and, accordingly, the relevant portion of the decision of the bankruptcy court is hereby AFFIRMED.

Section 522 permits a debtor to avoid a qualifying lien on a vehicle used and needed for the debtor’s trade, using both the tools of the trade and wild card exemptions.

Nazarene Federal Credit Union v. McNutt (In Re McNutt) · filed 1988-06-08(f)(2)(B)

A motor vehicle can be an implement or tool of the debtor’s trade, and thus exempt under 11 U.S.C. § 522(d)(6), if it is necessary to and used by the debtor to carry on his or her work, trade, or occupation. The “wild card” exemption of 11 U.S.C. § 522(d)(5) may be aggregated with the “tools of the trade” exemption of 11 U.S.C. § 522(d)(6) for the purpose of lien avoidance under 11 U.S.C. § 522(f)(2)(B).

Section 522(b)(2)(A) makes applicable state-law exemptions available to a debtor.

In Re Dennison · filed 1988-02-02§ 522(b)(2)(A)

The debtor may claim this State exemption in accordance with 11 U.S.C. § 522(b)(2)(A).

Under § 522(b)(2)(B), the debtor retains the exemption against sole creditors but loses it to the extent of joint creditors’ claims.

Pepenella v. Life Insurance Co. of Georgia (In Re Pepenella) · filed 1988-02-05§ 522(b)(2)(B)

The debtor does not lose all benefit of exemption under 11 U.S.C. § 522(b)(2)(B) when joint creditors are present; he loses the exemption as to the extent of the joint creditors and their claims.

Section 522(b) exempts a properly claimed homestead from the bankruptcy estate, so the exempt homestead never becomes estate property.

Whittington v. Gilbralter Savings & Loan Ass'n (In re Spain) · filed 1988-02-05§ 522(b)

Under Section 522(b), the exempt homestead never became property of the estate.

Section 522(d)(7) protects the policy as of the filing date, while § 541(a)(5) reaches proceeds acquired later.

Woodson v. Fireman's Fund Insurance · filed 1988-02-16§ 522(d)(7)

Section 522 exempts the policy as of the date of filing, whereas section 541(a)(5) sweeps in proceeds acquired later.

Section 522(d)(7) protects the debtor’s ownership interest in an unmatured life-insurance policy rather than the beneficiary’s later-acquired proceeds.

Woodson v. Fireman's Fund Insurance (In re Woodson) · filed 1988-02-16§ 522(d)(7)

Section 522 only protects the debtor’s ownership interest in the policy, that is, the right to maintain the policy and name a beneficiary.

Section 522(c)(1) makes exempt property liable for a child-support debt of the kind described in § 523(a)(5).

Matter of Sullivan · filed 1988-02-22§ 522(c)(1)

Accordingly, under 11 U.S.C. section 522(c)(1) the debtor’s homestead, although claimed exempt, is liable for the child support judgment which became a lien when payment was due.

Under § 522(b), property that the debtor has not yet claimed as exempt remains part of the bankruptcy estate.

In the Matter of Michael Don HARDAGE, Appellant, v. HERRING NATIONAL BANK, Appellee · filed 1988-02-22§ 522(b)

Because Hardage had not yet claimed the exemption, the immature Mueller Place cotton was the property of the estate when the bankruptcy trustee sold it to the Bank. 11 U.S.C. §§ 522(b), 541(a)(1).

Section 522(f)(2)(A) permits a debtor to avoid a qualifying lien on household or personal-use items to the extent the lien impairs an exemption.

In Re Ray · filed 1988-02-24§ 522(f)(2)(A)

This Court therefore concludes that each of the items objected to is within the scope of § 522(f)(2)(A) and the Debtors shall be allowed to avoid the liens of ITT and Beneficial to the extent that such liens impair exemptions to which the Debtors may be entitled.

Section 522 allows debtors to exempt some assets from the bankruptcy estate and requires them to choose either the federal or state exemption scheme.

In Re Edith Bloom, M.D., Debtor. Edith Bloom, M.D. v. Gilbert Robinson, Chapter 7 Trustee · filed 1988-02-24§ 522(b)

The Bankruptcy Code allows debtors to exempt some of their assets from inclusion in the bankruptcy estate. 11 U.S.C. § 522. Section 522(b) requires debtors to choose either the federal or state statutory exemption scheme.

Section 522(f)(1) allows a debtor to avoid a judicial lien on exempt property so that an otherwise unsecured creditor does not receive greater rights because it obtained a judgment.

In Re March · filed 1988-02-25§ 522(f)(1)

By avoiding some of the potential effects of a judgment Congress evinced an intent that it should not matter whether bankruptcy is filed before or after judgment is entered on an otherwise unsecured claim.

Section 522(f) allows lien avoidance even when the property has been abandoned by the estate.

In Re Haugland · filed 1988-03-04§ 522(f)

However, the language of § 522(f) is sufficiently broad to allow for lien avoidance with respect to abandoned property.

Section 522(f)(1) does not allow avoidance when a divorce-decree lien does not attach to an interest of the debtor in property.

In Re Sanderfoot · filed 1988-03-09§ 522(f)(1)

However, that analysis is unnecessary here given this court’s finding that the lien in this case does not attach to an interest of the debtor in property and for that reason is unavoidable.

In Colorado, § 522(f) cannot be used to avoid a lien on homestead property because the judgment lien does not attach to the exempt property and therefore does not impair the homestead exemption.

In Re Fry · filed 1988-03-15§ 522(f)

Under Colorado law the judgment lien can never “impair” the debtor’s homestead exemption simply because the judgment lien never attaches to that exempt property. Therefore, in Colorado, § 522(f) is superfluous in connection with the homestead exemption. ... Thus, a motion under 11 U.S.C. § 522(f) may not be used in Colorado to avoid a lien on homestead property.

Section 522(b) lets states opt out of the federal exemption scheme and provide bankruptcy exemptions under state law, including exemptions that are more or less restrictive than § 522(d), so long as they do not conflict with the Bankruptcy Code.

In Re Holt · filed 1988-03-17§ 522(b)

Congress, through § 522(b), expressly granted states the power to opt-out of the federal exemptions and provide for exemptions under state laws. Section § 522(b)’s opt-out provisions have been found to be a constitutional exercise of Congress’ power under the bankruptcy clause. Although a state’s opt-out powers may be limited to the extent that the powers do not actually conflict with the purposes and the intentions of the Bankruptcy Code, the Arkansas Legislature was granted the power by Congress to provide for exemptions which are more restrictive or less restrictive than the exemptions provided under § 522(d).

Section 522(f) targets overreaching liens that impair exemptions, but refinancing a purchase-money loan does not itself constitute the kind of overreaching it addresses.

In Re Hemingson · filed 1988-03-18§ 522(f)

Thus a creditor who renegotiates a purchase money loan by refinancing or advancing funds for new purchases is not committing the type of overreaching section 522(f) aims to prevent or violating the policy against overreaching which spawned the transformation decisions.

Section 522(f)(1) does not permit a debtor to avoid a lien on a homestead to the extent an antecedent debt leaves a deficiency after other property subject to execution is exhausted.

Matter of Nehring · filed 1988-03-22§ 522(f)(1)

As stated earlier, the debtors may not claim an exemption to the extent a deficiency exists and according may not avail themselves of lien avoidance under 11 U.S.C. section 522(f)(1).

Section 522(b)(2)(A) does not exempt ERISA-qualified private pension plans as property exempt under federal law.

In Re Gribben · filed 1988-03-24§ 522(b)(2)(A)

The Court thus concludes that Congress did not intend to include ERISA-qualified plans within § 522(b)(2)(A).

Section 522(b)(2)(A) allows a debtor to claim specified federal exemptions unless the debtor’s state of domicile has opted out and provided its own exemptions.

Jerald James JOHNSTON, Debtor-Appellant, v. Gary BARNEY, Trustee-Appellee · filed 1988-03-28§ 522(b)(2)(A)

Under section 522(b)(2)(A) of the Bankruptcy Reform Act of 1978, 11 U.S.C. § 522(b)(2)(A) (1982), a debtor is permitted to exempt from property of the estate certain items listed in section 522(d), unless the state of the debtor’s domicile has specifically opted out of the federal exemption scheme and has provided its own exemptions.

Section 522(c)’s protection for exempt property does not prevent a creditor from exercising a setoff right preserved by § 553 when the provisions conflict.

Pieri v. Lysenko (In Re Pieri) · filed 1988-03-31§ 522(c)

Here that would mean that Section 553 would control over Section 522(c) on any point of conflict.

Section 522(f)(2)(B) does not treat livestock as tools of the trade, so liens on exempt livestock cannot be avoided under that provision.

In Re Heape · filed 1988-04-05§ 522(f)(2)(B)

Section 522(f)(2) indicates that Congress did not intend that liens on exempt livestock would be avoided.

Section 522(b)(2)(A) requires exemptions to be determined under the applicable state or local law in effect when the bankruptcy petition is filed.

Fernandez v. Seidler (In Re Fernandez) · filed 1988-04-11§ 522(b)(2)(A)

The Bankruptcy Code provides that exemptions shall be allowed and set aside in the accordance with state or local laws at the time of filing of the petition. 11 U.S.C. Section 522(b)(2)(A).

Section 522(f)(2)(A) identifies nine categories of personal property eligible for lien avoidance when held primarily for the debtor’s or a dependent’s personal, family, or household use.

In Re Lozano · filed 1988-04-11§ 522(f)(2)(A)

Section 522(f)(2)(A) establishes nine categories of personal property that qualify for the avoidance. They are: ... provided that same are held primarily for the personal, family or household use of the debtor or a dependent of the debtor.

Section 522(f)(2)(A) permits avoidance of liens on animals and livestock feed held primarily for personal, family, or household use, with the applicable exemption here limited to one year’s consumption.

Matter of Simmons · filed 1988-04-19§ 522(f)(2)(A)

Therefore under this subsection, the debtors herein may avoid the liens in the livestock and feed for livestock used for such purposes. Liens on livestock and feed held for commercial use cannot be avoided under this subsection. ... Accordingly, the court determines that lien avoidance pursuant to 11 U.S.C. section 522(f)(2)(A) and premised on Iowa Code section 627.6(ll)(b) should be limited to one year’s consumption.

Section 522(c)(2)(B) leaves an exempt homestead subject to a properly filed tax lien despite the exemption and discharge of prepetition indebtedness.

Jewell v. Minnesota, Department of Revenue (In re Jewell) · filed 1988-04-22§ 522(c)(2)(B)

11 U.S.C. § 522(c)(2)(B) provides that a debtor’s exempt homestead is subject to a debtor’s tax liability to the extent of a tax lien, ... notwithstanding the exemption and discharge from prepetition indebtedness.

Section 522 protects exempt property from a creditor’s right of setoff.

In Re Wilde · filed 1988-04-25§ 522

Accordingly, the Bank may not exercise its right of setoff against debtors’ funds that constitute exempt property under 11 U.S.C. § 522 and N.M.Stat.Ann. 42-10-1 (1986 Supp.).

Section 522(d)(5) permits the debtor to exempt a pension-plan distribution as property within the provision’s statutory limit.

In Re Magnus · filed 1988-04-26§ 522(d)(5)

We hold that the total amount of the pension distribution may properly be allowed as a § 522(d)(5) exemption.

Section 522(f)(2) does not permit lien avoidance on property claimed exempt as a homestead.

Matter of Dettman · filed 1988-04-29§ 522(f)(2)

However, nothing in section 522(f)(2) allows lien avoidance on such a homestead.

Section 522(f)(1) permits lien avoidance while preserving the debtor’s exemptions, so available exemptions are included when deciding which liens or portions of liens may be avoided.

Mays v. United States, Department of Housing & Urban Development (In Re Mays) · filed 1988-05-05§ 522(f)(1)

Section 522(f)(1) preserves exemptions, and therefore allows the debtor to add the sum of the debtor’s available exemptions to the unavoidable liens against the property in the determination of what liens or portions thereof can be avoided.

Section 522(d)(10)(E) does not exempt the individual retirement accounts at issue.

In Re Heisey · filed 1988-05-05§ 522(d)(10)(E)

In addition, this Court finds that the I.R. A.’s are not exempt property pursuant to 11 U.S.C. § 522(d)(10)(E).

Section 522(f) applies prospectively rather than retrospectively to security interests obtained before the Bankruptcy Code’s enactment.

In Re Hansen · filed 1988-04-01§ 522(f)

is that the congressional intent was to apply 11 U.S.C. § 522(f) prospectively rather than retrospectively to security interests obtained pri- or to the Code’s November 6, 1979 enactment date.

Section 522(b)(2)(A) permits a debtor to claim exemptions from the estate under applicable state law.

In Re Shields · filed 1988-04-15§ 522(b)(2)(A)

Debtor may claim exemptions from his bankruptcy estate under Oklahoma law applicable on the date Debtor filed his bankruptcy petition, 11 U.S.C. § 522(b)(2)(A), ...

A foreclosure decree merely confirms a preexisting consensual mortgage lien and does not create a judicial lien subject to avoidance under § 522(f)(1).

Federal Land Bank of Omaha v. Blankemeyer · filed 1988-04-15§ 522(f)(1)

does not create a “judicial lien,” as that term is used in § 522(f)(1).

Section 522(f)(1) requires a judicial lien, a debtor’s interest in the property, and impairment of an exemption to which the debtor would otherwise be entitled.

In Re Dixon · filed 1988-04-26§ 522(f)(1)

This section creates three requirements before a debtor can avoid a judicial lien.

Section 522(f) allows lien avoidance only to the extent a lien impairs an exemption to which the debtor is entitled, so no available exemption means no lien avoidance.

In Re Eiland · filed 1988-05-03§ 522(f)

If there is no ability to utilize an exemption, there can be no lien avoidance.

Section 522(b)(1) allows states to replace the federal exemption list with their own exemptions.

In Re James George ONDRAS, Debtor-Appellant · filed 1988-05-09§ 522(b)(1)

It preserves for the states the ability to substitute their own list of exemptions for those specified in the federal statute.

Section 522 preserves the debtor’s potential exemption rights in postpetition appreciation that otherwise accrues to the bankruptcy estate.

In Re Paolella · filed 1988-05-18§ 522 generally

Postpetition appreciation in the value of property, except to the extent of the debtor’s potential exemption rights pursuant to 11 U.S.C. § 522, accrues for the benefit of the trustee until the property is liquidated or abandoned.

Section 522(f)(2) does not let debtors avoid a purchase-money security interest in a vehicle because neither the consensual lien nor that type of personal property is listed there.

In Re Milcher · filed 1988-05-26§ 522(f)(2)

Nor can the Debtors prevail under Section 522(f)(2) as they are attempting to set aside a purchase money security interest in a vehicle and neither that consensual security interest nor that type of personal property is enumerated within Section 522(f)(2).

Section 522(g)(1)(A) treats a transfer made under legal compulsion as nonvoluntary for purposes of the debtor’s exemption claim.

Hoffman v. Central Pennsylvania National Bank (In Re Hoffman) · filed 1988-05-26§ 522(g)(1)(A)

Since the debtor was unable to affect the route of the proceeds, the transfer was a non-voluntary transfer and meets the requirements of section 522(g)(1) as well as the second condition.

Under § 522(b)(2)(B), entireties property is exempt only to the extent it is exempt from process under applicable state nonbankruptcy law.

Hoerner v. Elkins (In Re Elkins) · filed 1988-06-01§ 522(b)(2)(B)

Section 522(b)(2)(B) specifically provides that a tenancy by the entirety is exempt only to the extent it is “exempt from process under applicable nonbank-ruptcy law.”

Section 522(f)(2) gives debtors a federal lien-avoidance remedy for the listed types of property, while state law determines which property is exempt.

In Re Eveland · filed 1988-06-02§ 522(f)(2)

what property is exempt is determined by state law, but federal law determines what liens may be avoided.

Section 522(f)(1) does not allow a debtor to avoid a judicial lien that attached to the property simultaneously with acquisition, before the debtor had an unencumbered interest.

Owen v. Owen (In Re Owen) · filed 1988-06-07§ 522(f)(1)

The Court additionally finds persuasive the arguments of Appellee that debtor never owned an unencumbered interest in the real property in question, since the lien attached to the property simultaneously with acquisition of the property.

Section 522(f)(2)(B) concerns tools of the trade and does not specifically include motor vehicles.

In Re Spykstra · filed 1988-06-08§ 522(f)(2)(B)

This distinction is important because 11 U.S.C. § 522(f)(2)(B) concerns “tools of the trade” and does not specifically mention motor vehicles.

Workers’ compensation benefits are exempt in their entirety under § 522(d)(10)(C) as disability benefits.

In Re Cain · filed 1988-06-08§ 522(d)(10)(C)

supports a finding that workers’ compensation benefits are exempt in their entirety under 11 U.S.C. § 522(d)(10)(C).

Section 522(c)(2) allows a lien to be enforced against exempt personal property when the lien was not avoided under the specified Code provisions or voided under § 506(d).

Jim Walter Homes, Inc. v. Saylors (In Re Saylors) · filed 1988-05-10§ 522(c)(2)

Sturdivant’s debt does not fall within any of the categories set out in § 522(c)(2); therefore, First Family had the right, subsequent to Sturdivant’s bankruptcy discharge, to enforce its lien against the furniture.

Section 522(f) authorizes avoidance only to the extent that a judicial lien impairs an exemption available under § 522(b).

Stinson v. Williamson (In re Williamson) · filed 1988-05-16§ 522(f)

First, it must be determined whether the debtors have a homestead exemption that is impaired.

Section 522(b)(2)(A) allows an individual Chapter 7 debtor to choose between state and federal exemptions when claiming exempt property.

In re Perciavalle · filed 1988-05-25§ 522(b)(2)(A)

The Bankruptcy Code allows an individual Chapter 7 Debtor to select state or federal exemptions when claiming exempt property.

Section 522(f)(2)(B) requires equipment to be exempt as a tool of the trade under state exemption law before its lien can be avoided.

South Atlantic Production Credit Ass’n v. Jones (In Re Jones) · filed 1988-06-10§ 522(f)(2)(B)

laws for the lien on it to be avoided under 11 U.S.C. section 522(f)(2)(B).

Section 522(f)(1) lets a debtor avoid a lien impairing an exemption only when the lien is a judicial lien, not a statutory lien.

In Re Aikens · filed 1988-06-16§ 522(f)(1)

A “statutory lien” also cannot be avoided under § 522(f)(1).

Section 522(f)(2)(A) permits avoidance of a nonpossessory, nonpurchase-money security interest in qualifying household goods to the extent it impairs an exemption.

In Re Snipes · filed 1988-06-20§ 522(f)(2)(A)

Section 522(f)(2)(A) of the Bankruptcy Code permits a debtor to avoid a nonpos-sessory, nonpurchase-money security interest in household furnishings, household goods, or appliances ...

Section 522(f)(2)(A) allows avoidance of a nonpossessory, nonpurchase-money security interest in listed household goods to the extent an exemption is impaired.

In Re Gray · filed 1988-06-20§ 522(f)(2)(A)

Section 522(f)(2)(A) allows debtors in bankruptcy to avoid a nonpossessory, nonpurchase money security interest lien in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, musical instruments, or jewelry ...

Section 522(d)(1) provides a homestead exemption, and limited occupancy of a vacation home can prevent it from qualifying as the debtor’s residence.

In Re Tomko · filed 1988-06-28§ 522(d)(1)

Given the purpose of § 522(d)(1) and the debtors’ use of the Barnegat Light property, I conclude that it is not their “homestead” and thus the debtors’ interest in that property cannot be claimed as exempt under § 522(d)(1).

Section 522(f)(2)(A) permits avoidance of a nonpossessory, nonpurchase-money security interest in qualifying household goods to the extent it impairs an exemption.

In Re Bowen · filed 1988-07-07§ 522(f)(2)(A)

Section 522(f)(2)(A) of the Bankruptcy Code permits a debtor to avoid a non-pos-sessory, nonpurchase money security interest in household furnishings, household goods, or appliances ...

Section 522(f)(1) does not allow avoidance of a consensual lien that is a security interest rather than a judicial lien.

In Re Bland · filed 1988-07-13§ 522(f)(1)

the three liens sought to be avoided are security interests, not judicial liens for purposes of lien avoidance under Sec. 522(f)(1).

Section 522(b) permits a state to opt out of the federal exemptions available under § 522(d), so Georgia’s own exemption limits applied.

Walker v. Guy F. Atkinson Co. of California (In Re Sanders) · filed 1988-07-18§ 522(b), § 522(d)

Pursuant to 11 U.S. C. § 522(b) Georgia has elected to opt out of the federal exemption provisions available under 11 U.S.C. § 522(d) and has established its own exemption limitations ...

Section 522(f) allows debtors to avoid a judicial lien impairing an applicable homestead exemption.

In Re Billerman · filed 1988-06-21§ 522(f)

judicial lien, the lien is subject to avoidance by the exercise of the power given to debtors under § 522(f).

Section 522(b) excludes exempt property from the estate under § 541 and permits states to opt out of the federal exemptions in § 522(d).

Ames v. Custis (In Re Custis) · filed 1988-06-30§ 522(b)

In determining the exemptions available to a debtor in bankruptcy, the Bankruptcy Code has provided for a state to “opt-out” of the federal exemptions contained in § 522(d).

Under § 522(f)(2)(B), tangible personal property used as a tool or implement in carrying on a debtor’s trade qualifies as a tool or implement of the trade.

In Re Bulger · filed 1988-07-19§ 522(f)(2)(B)

any tangible personal property used as a tool or implement in carrying on one’s trade qualifies as a tool or implement of the trade under 11 U.S.C. § 522(f)(2)(B).

Section 522(c) preserves unavoided liens against exempt property after a Chapter 7 case.

Behrens v. Ass’n · filed 1988-07-26§ 522(c)

all unavoided liens in the property also survive the Chapter 7 case.

Section 522(i) makes property claimed as exempt exempt unless a party in interest objects.

In re Guidry · filed 1988-08-08§ 522(i)

Unless a party in interest objects, the property claimed as exempt on the list is exempt. 11 U.S.C. sec. 522(i).

Section 522(f)(2) authorizes avoidance of a qualifying nonpossessory, nonpurchase-money security interest in household goods to the extent it impairs an exemption.

Hipps v. Landmark Financial Services of Georgia, Inc. (In Re Hipps) · filed 1988-08-09§ 522(f)(2)

a debtor may avoid a nonpossessory, nonpurchase-money security interest in household goods to the extent it impairs an exemption to which the debtor is entitled.

Section 522(b)(2) permits a debtor to claim exemptions under applicable state law and other federal law instead of the Code’s minimum allowances.

Norwest Bank Nebraska v. Tveten · filed 1988-08-09§ 522(b)(2)

When the debtor claims a state-created exemption, the scope of the claim is determined by state law.

Section 522(f) does not independently allow a debtor to avoid a lien on property that applicable state law does not treat as exempt.

In Re Estep · filed 1988-08-10§ 522(f), § 522(b)

the debtors cannot utilize § 522(f) independently of § 522(b).

Section 522(b)(2)(A) incorporates only valid state-law exemptions, so an unconstitutional state exemption cannot remove property from the estate.

In Re Hudspeth · filed 1988-08-22§ 522(b)(2)(A)

The phrase “exempt under ... [sjtate law” implicitly refers to a valid state law.

Section 522(h) permits a debtor to seek avoidance of a transfer under § 548 when the trustee has not done so.

In the Matter of Donald Eugene Bundles, Debtor-Appellant · filed 1988-08-25§ 522(h)

Section 522(h) of the Bankruptcy Code, 11 U.S.C. § 522(h) (Supp. IV 1986), permits the debtor to seek avoidance of a transfer under § 548 if the trustee has not done so.

Section 522(f) generally authorizes avoidance of certain nonpossessory, nonpurchase-money security interests, while state law determines which property is exempt.

In Re Michalak · filed 1988-08-29§ 522(f)

State law for specific exemptions.

Section 522(g) permits a debtor to claim an otherwise allowable exemption in property recovered by a trustee after an involuntary transfer, but not after a voluntary transfer.

In Re Savage · filed 1988-08-29§ 522(g)

Essentially § 522(g) recognizes, where a property interest has been involuntarily taken from a debtor by means such as execution, repossession or certification of a judgment, that it would be inequitable not to permit a debtor to assert an otherwise allowable exemption ...

A FELA settlement resulting in a disability is exempt as a disability benefit under § 522(d)(10)(C).

In Re Albrecht · filed 1988-08-30§ 522(d)(10)(C)

Thus, the FELA settlement at issue which resulted in a disability preventing the debtor from returning to work is exempt as a disability benefit under § 522(d)(10)(C).

Section 522(f)(1) does not allow avoidance of a lien voluntarily granted in a property-settlement agreement and later judicially approved.

In Re Dunn · filed 1988-09-08§ 522(f)(1)

the lien is more accurately characterized as being in the nature of a security interest rather than a judicial lien, and, thus not avoidable under § 522(f)(1).

Section 522(e) does not allow broad loan-document language to waive debtors’ exemption rights.

In Re Laues · filed 1988-09-14§ 522(e)

Clearly it does not, either under North Carolina exemption law or the provisions of the Bankruptcy Code. N.C.GEN.STAT. § 1C-1601(c); 11 U.S.C. § 522(e).

Section 522(b)(2)(A) permits a debtor to elect applicable state-law exemptions, making state law govern objections to those exemptions.

In Re Peters · filed 1988-09-20§ 522(b)(2)(A)

The Debtors in this case have elected to claim under § 522(b)(2)(A), state exemptions. Therefore, state law must govern the outcome of objections to the exemptions which the Debtors have claimed in this case.

Section 522(d)(10)(E) allows an ERISA-qualified pension fund not excluded under § 541(c)(2) to be exempted if it satisfies the subsection’s criteria.

In Re Hysick · filed 1988-09-28§ 522(d)(10)(E)

ERISA-qualified funds not excluded under 11 U.S.C. § 541(c)(2) can still be exempted if they meet the criteria outlined in 11 U.S.C. § 522(d)(10)(E).

Property claimed as exempt is exempt when no timely objection is filed.

In Re Duncan · filed 1988-09-28§ 522(i)

Since there was no timely objection, the homestead claimed as exempt is exempt. 11 U.S.C. § 522(i).

Section 522(f)(1) allows a debtor to avoid a judicial lien that impairs an exemption when the statutory requirements are met.

In Re Sanderfoot · filed 1988-10-04§ 522(f)(1)

the Bankruptcy Code provides that he may avoid Mrs. Sanderfoot’s lien pursuant to § 522(f)(1) because he has met all of the statutory requirements of that section.

Section 522(d)(10)(E) allows an annuity payment to be exempted to the extent reasonably necessary for support unless the plan has a specified disqualifying characteristic.

In Re Hunsucker · filed 1988-10-05§ 522(d)(10)(E)

the only other reason her claim for exemption would fail under § 522(d)(10)(E) would be that it is not “reasonably necessary” for her support or for the support of her dependents.

Section 522(c)(2) leaves exempt property subject to a lien that the debtor has not avoided.

Matter of Carroll · filed 1988-08-26§ 522(c)(2)

Because the debtors are unable to avoid the doctor’s lien, the funds in the possession of their attorney remain subject to the lien notwithstanding the debtors’ exemption of the funds.

Section 522(f) gives an individual Chapter 7 debtor power to avoid a lien on exempt property when it is a judicial lien, and to a limited extent when it is consensual.

In Re Gleason · filed 1988-09-26§ 522(f)

and to a limited extent if a consentual lien.

Section 522(f)(2)(A) leaves the unpaid purchase-money portion of a security interest unavoidable after refinancing unless the refinancing was intended as a novation.

In Re Parsley · filed 1988-09-27§ 522(f)(2)(A)

This Court concludes that under section 522(f) of the Bankruptcy Code, a holder of a security interest has an unavoidable PMSI to the extent that the purchase price of the collateral has never been paid by the debtor even if the collateral secures debt other than its own purchase price or if the debt has been refinanced, unless the refinancing was clearly intended as a novation, ...

Section 522(f)(1) does not permit lien avoidance when the debtor is not entitled to the claimed exemption under state law.

Matter of Schuldt · filed 1988-09-30§ 522(f)(1)

could not utilize lien avoidance in situations where they were not entitled to exemptions under state law.

Section 522 allows a debtor, in appropriate circumstances, to claim exemptions in property recovered from avoided transfers and to avoid such transfers for the debtor’s own benefit if the trustee does not.

Warsco v. Ryan (In Re Richards) · filed 1988-10-14§§ 522(h), 522(i)

Under appropriate circumstances, a debtor may claim exemptions out of transfers, including preferences, which have been avoided by the trustee or avoid such transfers on his own behalf, if the trustee fails to do so, in order to recover exemptible property.

Section 522(b)(1) permits exemptions under federal or state law, but when a state has opted out of the federal exemptions, that state’s exemption statute governs.

Matter of Young · filed 1988-10-18§ 522(b)(1)

Accordingly, the applicable provisions of the Ohio exemption statute provide the basis for determining the extent of the debtors’ exemptions.

Section 522(c)(2) does not prevent enforcement of a consensual lien against exempt property.

Hill v. Anderson (In Re Anderson) · filed 1988-10-20§ 522(c)(2)

Nor does Anderson’s claim of exemption affect the enforceability of what is, in essence, a consenual lien which is outside the parameters of the Uniform Commercial Code.

Section 522(g)(1)(A) prevents a debtor from claiming an exemption for property recovered by the trustee when the debtor voluntarily transferred that property.

Kepler v. Weis (In Re Weis) · filed 1988-10-26§ 522(g)(1)(A)

Therefore, to exercise an exemption right under section 522(g), the debtor in this case must establish that the transfer was not a voluntary transfer.

A debtor’s homestead exemption is impaired by a judicial lien when the total mortgage debt plus the homestead exemption equals or exceeds the property’s value.

In Re Smith · filed 1988-10-31§ 522(f)(1)

The clear weight of authority, and the better reasoned view, is that a debtor’s homestead exemption is impaired by a judicial lien, within the meaning of 11 U.S.C. § 522(f), where the sum of total mortgage indebtedness, plus the homestead exemption, equals or exceeds the value of the debtor’s property.

Section 522 permits lien avoidance in a Chapter 12 case, but the lien is not actually avoided until discharge is entered.

Matter of Bluridg Farms, Inc. · filed 1988-10-31§ 522

This court has held that lien avoidance pursuant to 11 U.S.C. section 522 is appropriate in Chapter 12 but that the actual avoidance is conditioned upon entry of the discharge.

Section 522(f)(2) permits avoidance of a security interest in property that fits its “implements ... or tools” terms, if the property is exempt under Oklahoma law.

In Re Helmuth · filed 1988-11-01§ 522(f)(2)

Therefore, security interests in this property may be avoided, even to the extent of $140,000 worth—that is, if the property is exempt in the first place under Oklahoma law.

Section 522(f) permits avoidance of a lien, but without an attempt to avoid it the property remains subject to the valid lien.

Boyd v. Boyd (In Re Boyd) · filed 1988-11-07§ 522(f)

As a result, the property remains subject to the valid lien of Robert H. Boyd.

On these facts, § 522(f) does not permit a debtor to avoid prepetition liens held by creditors deliberately omitted from the petition.

In Re Schroff · filed 1988-11-08§ 522(f)

Therefore, the debtor will not be permitted to avoid under § 522(f) the pre-petition liens of the creditors not listed in his petition.

Section 522(f)(1) allows a debtor to avoid the fixing of a judicial lien on exempt property.

In Re Alvarado · filed 1988-11-09§ 522(f)(1)

Under section 522(f)(1), the debtor may avoid the fixing of a judicial lien on exempt property.

Section 522(f)(2)(B) permits avoidance of a nonpossessory, nonpurchase-money security interest in tools of the trade to the extent the lien impairs an exemption available under § 522(b).

In Re Taylor · filed 1988-11-09§ 522(f)(2)(B)

Thus, liens can be avoided only to the extent that they impair an exemption under subsection (b).

Section 522(f)(2)(B) permits avoidance of qualifying liens on tools of the trade only to the extent the lien impairs an exemption under § 522(b).

Rainier Equipment Finance, Inc. v. Taylor (In re Taylor) · filed 1988-11-09§ 522(f)(2)(B)

Thus, liens can be avoided only to the extent that they impair an exemption under subsection (b).

Section 522(d)(11)(D) may exempt unencumbered value in an unliquidated personal-injury claim, but it does not eliminate a consensual lien that already encumbers the claim.

St. Mary’s Medical Center v. Nelson (In Re Nelson) · filed 1988-11-17§ 522(d)(11)(D)

The fact that Defendant could have exempted all or part of any unencumbered value in an un-liquidated personal-injury cause of action from her bankruptcy estate is completely beside the point; here, there was no such exemptible “equity.”

Section 522(b)(1) lets states opt out of the federal exemption structure while preserving federal lien avoidance, which refers back to the applicable exemption structure.

Snow v. Green (In Re Snow) · filed 1988-10-07§§ 522(b), 522(f)(1)

It is important to distinguish between subsection (b) of 11 U.S.C. § 522 which provides for federal exemptions and allows states to opt out of the federal exemption scheme, and to put in place the particular exemption scheme of the state, and subsection (f) which creates the mechanism of lien avoidance.

Section 522 supports continuing ERISA qualification of a plan despite the beneficiary’s bankruptcy filing.

In Re Witte · filed 1988-10-21§ 522

§ 522 is a very strong argument in favor of the continued ERISA-qualification of a plan despite the filing of a bankruptcy petition by the beneficiary.

Section 522(i) and § 550(e) do not impose the case-closing time bar on a debtor’s § 522(f) lien avoidance when the debtor need not recover property from a transferee.

In Re Goydoscik · filed 1988-11-18§ 522(i)(1)

therefore hold that sections 522(i) and 550(e) are inapposite to the instant case.

A debtor cannot use § 522’s exemptions or lien-avoidance power to preserve an exemption lost by failing to comply with state-law procedures.

In Re McLamb · filed 1988-11-29§§ 522(b), 522(f)

the debtors in this case may not claim exemption rights in bankruptcy which they would not be entitled to under state law because of their failure to comply with state law procedural requirements.

Because Nebraska opted out of the federal exemption scheme, a Nebraska debtor may claim exemptions under Nebraska law instead of the exemptions authorized by § 522.

Matter of Armstrong · filed 1988-12-02§ 522

A debtor in the District of Nebraska filing a bankruptcy petition may exempt property authorized under the Nebraska statutes rather than the exemptions authorized by the Bankruptcy Code at 11 U.S.C. § 522 because the Nebraska Legislature in 1980 opted out of the bankruptcy exemption scheme.

Section 522(b)(2)(A) does not treat an ERISA anti-assignment provision as an “other Federal law” exemption.

Wear v. O'Brien (In Re O'Brien) · filed 1988-12-07§ 522(b)(2)(A)

that Congress did not intend to include ERISA plans within the other ‘Federal law’ exemption of § 522.”

Section 522(h), together with § 522(g)(1), lets a debtor use a bankruptcy trustee’s avoidance powers to challenge a foreclosure sale.

Butler, Bernard, Butler, Mary v. Lomas and Nettleton Company, the Secretary of Housing and Urban Development, Appeal of · filed 1988-12-07§ 522(h) (in conjunction with § 522(g)(1))

Together these sections allow the Butlers to stand in the shoes of a bankruptcy trustee for the purpose of avoiding the foreclosure sale.

Under § 522(f)(2)(A), a debtor may avoid a nonpossessory, nonpurchase-money lien when the property was part of the estate and exemptible at filing, even if it is later destroyed and represented by insurance proceeds.

In Re Sherwood · filed 1988-12-08§ 522(f)(2)(A)

In order to avoid a lien under sec. 522(f)(2)(A), the court must find that the lien impairs an exemption to which the debtor would otherwise be entitled and the lien must be against an interest of the debtor in the property. ... Since it is the date of the filing which determines both property of the estate and a debtor’s exemptions, the court finds that the filing date also should control whether or not a debtor may avoid a lien under sec. 522. ... Although it is true that at the time the debtors filed their motions to avoid lien the personal property had been destroyed, the insurance proceeds are simply another form of that personal property.

Section 522(b)(2)(B) requires entireties property to be exempt from process under applicable state law for the debtor to claim the exemption.

Hoerner v. Elkins (In re Elkins) · filed 1988-12-13§ 522(b)(2)(B)

we decided that Debtor Elkins was not entitled to claim an entireties exemption in the real property at issue because, under applicable Michigan law, the entireties property would not be exempt from process as required by 11 U.S.C. § 522(b)(2)(B).

Section 522(b)(2)(B) permits an exemption limited by a trustee’s contingent expectancy when state law allows attachment of the debtor’s tenancy-by-the-entirety interest but not levy or execution.

In Re McConchie · filed 1988-12-14§ 522(b)(2)(B)

The debtor’s interest in her tenancy-by-the-entirety is subject to attachment but not subject to levy or execution at this time and, so, the debtor’s right to possession cannot be interfered with unless and until the property is sold, or debtor and her present spouse are divorced, or she survives her spouse, in which event the trustee will be free to enforce his interest in the debtor’s real estate. The trustee has a real albeit contingent interest in the real estate, while the debtor has an exemption limited by the trustee’s expectancy.

Under § 522(b)(2)(B), the extent of an entireties exemption is determined by the joint claims existing immediately before the bankruptcy case begins, so later releases do not defeat the exemption objection.

In Re Oberlies · filed 1988-12-21§ 522(b)(2)(B)

As the trustee here has cogently argued, accepting the debtor’s reasoning would effectively write the words “immediately before the commencement of the case” out of § 522(b)(2)(B). ... Accordingly, the trustee’s objection to the debtor’s claim of exemption with respect to these properties to the extent of the joint claims existing at the commencement of this case must be sustained.

Section 522(f)(2)(A) does not allow lien avoidance for firearms that are not household goods and are not necessary to the debtor’s new beginning.

In Re Oglesby · filed 1989-01-04§ 522(f)(2)(A)

The record in this case has not established that the firearms are necessary to the Debtor’s new beginning. ... Therefore, as a matter of federal law in this Circuit, these firearms are not household goods as that term is intended to be applied in a consideration of lien avoidance.

Section 522(b)(2) permits a debtor to retain property exempted from the bankruptcy estate under the state or local law of the debtor’s domicile.

In The Matter Of C. Ritchey Smiley · filed 1989-01-09§ 522(b)(2)

A debtor may retain as personal property assets which are exempted from the bankruptcy estate under the state or local law of the debtor’s domicile. 11 U.S.C. Sec. 522(b)(2) (1982). Conversions of assets from non-exempt to exempt forms within the year preceding a petition for bankruptcy are not necessarily fraudulent to creditors.

Section 522(b)(2) permits a debtor to retain property exempted from the bankruptcy estate under the state or local law of the debtor’s domicile.

Smiley v. First National Bank of Belleville (In re Smiley) · filed 1989-01-09§ 522(b)(2)

A debtor may retain as personal property assets which are exempted from the bankruptcy estate under the state or local law of the debtor’s domicile. 11 U.S. C. § 522(b)(2) (1982).

Section 522(h), together with § 522(g)(1), permits a debtor to avoid an involuntary transfer when the property could have been exempted and the trustee does not attempt to avoid it.

In Re Bistransin · filed 1989-01-12§ 522(h), § 522(g)(1)

Thus, even assuming the existence of a statutory landlord’s lien, Debtor’s situation meets the requisite criteria of § 522(g)(1) and Debtor can avoid the lien in accordance with § 522(h) and § 545.

Section 522(f)(2)(B) permits avoidance of a lien on exempt equipment when the security interest is nonpossessory, and a default repossession under a right-to-possess clause does not make a filing-perfected lien possessory.

In Re Schultz · filed 1989-01-13§ 522(f)(2)(B)

Where the parties originally enter into a nonpossessory security agreement perfected by filing, a clause giving the secured party right to possess the collateral upon default does not render the security interest possessory within the meaning of 11 U.S.C. § 522(f)(2)(B) where the secured party repossesses the equipment by self-help or by judicial action.

Section 522(f)(1) does not permit avoidance of a judicial lien when the lien cannot attach to the debtor’s interest and therefore cannot impair an exemption.

Hudson v. Lowe's of Mississippi (In Re Hudson) · filed 1989-01-19§ 522(f)(1)

Additionally, because the Lowe’s judgment cannot attach to the debtor’s interest in the sales proceeds from the subject property, it cannot impair an exemption in these funds should the debtor be entitled to same. Therefore, the debtor’s motion to avoid the judgment lien pursuant to 11 U.S.C. § 522(f)(1) is no longer well founded and must be dismissed.

Section 522(f)(2)(A) permits lien avoidance only for property fitting its listed categories and held primarily for personal, family, or household use.

In Re Vale · filed 1989-01-23§ 522(f)(2)(A)

It is clear to the Court that the mere fact certain items or personal property or “goods” are 1) normally found in or around the Debtor’s household, or the cur-tilage thereof, and 2) the Debtor uses the items in connection with, or arising out of his household activities or personal affairs, either for utilitarian or recreational purposes, does not, standing alone, make such items household goods, household furnishings or appliances for the purposes of § 522(f)(2).

Section 522(h), together with § 522(g)(1), permits a debtor to avoid a qualifying transfer when the debtor could exempt the property and the trustee does not act; merely failing to pay bills does not make the resulting lien voluntary.

Aikens v. City of Philadelphia, Water Revenue Bureau (In Re Aikens) · filed 1989-01-25§ 522(h), read with § 522(g)(1)(A), (g)(1), and (g)(2)

We disagree with the City’s contention, as expressed in this passage, that some sort of “implied consent” on the part of the Debtor to the entry of the liens can be inferred simply because he failed to pay his water and sewer bills.

For purposes of avoiding a judicial lien under § 522(f)(1), fair market value is generally the preferred valuation measure.

Barrow v. Certified Developers & Management Co. (In re Barrow) · filed 1989-01-26§ 522(f)(1)

Fair market value should usually be the preferred mode of valuation.

Section 522(b) permits Ohio to opt out of the federal exemption scheme, leaving Ohio debtors to claim exemptions under state law.

In re Garland · filed 1989-01-26§ 522(b)

Ohio has opted out of the federal exemption scheme pursuant to 11 U.S.C. § 522(b). Therefore, Ohio bankruptcy debtors look to state law for exemption claims.

Section 522(g) permits avoidance of a transfer for the debtor’s benefit when necessary to protect exemptions.

Covey v. United Federal Savings & Loan Ass'n (In Re Owen) · filed 1989-02-01§ 522(g)

Section 522(g) suggests that the Code permits such actions by the trustee in order to protect the debtor’s exemptions.

Section 522(f)(2)(B) permits a debtor using state exemptions to avoid a qualifying lien on property covered by the state’s tools-of-the-trade exemption.

In Re Gary Thompson and Randalyn Thompson, Debtors-Appellees. Appeal of Abbotsford State Bank · filed 1989-02-01§ 522(f)(2)(B), in conjunction with § 522(b)(2)(A)

As a semantic matter, the reference in section 522(f)(2)(B) to the tools of the trade exemption is to both the federal exemption and the corresponding state exemption, depending on which the debtor has elected under section 522(b)(2)(A).

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

In re Peklenk · filed 1989-02-14§ 522(b)

Under that section of the Bankruptcy Code, states may elect to “opt out” of the exemptions allowed by the Code and may substitute therefor a state exemption scheme.

Section 522(b)(1) permits Iowa to opt out of the federal exemption scheme, so Iowa exemption disputes are decided under Iowa law.

In Re Krantz · filed 1989-02-21§ 522(b)(1)

Iowa has opted out of the federal bankruptcy exemption scheme, pursuant to 11 U.S. C. § 522(b)(1) and Iowa Code § 627.10 (1987). Thus, in Iowa, debtors claim “state-created exemptions.”

A debtor cannot use § 522(f)(1) to avoid a judicial lien after conveying away the property because the debtor must still own an interest when seeking lien avoidance.

Riddell v. N.C.R. Universal Credit Union (In Re Riddell) · filed 1989-02-24§ 522(f)(1)

In other words, the Debtor must own the property at the time of the lien avoidance in order to avail herself of the remedy in 11 U.S.C. § 522(f)(1).

Section 522(f)(1) does not require a debtor-creditor relationship between the debtor and the lienholder.

Taylor v. Federal National Mortgage Ass'n (In Re Taylor) · filed 1989-03-01§ 522(f)(1)

There is nothing in § 522(f)(1) which, in our view, makes such a relationship a prerequisite.

Under § 522(b)(2)(A), exemption rights are determined when the bankruptcy petition is filed.

In Re Pederson · filed 1989-03-06§ 522(b)(2)(A)

Exemption rights in bankruptcy are determined as of the time of the bankruptcy filing. 11 U.S.C. § 522(b)(2)(A).

A debtor must take affirmative steps under § 522(l) to remove exempt property from the bankruptcy estate.

Linklater v. Johnson · filed 1989-03-09§ 522(l)

Rights of action may be subject to exemption under 11 U.S.C. § 522(1), but the debtor must take affirmative steps to remove exempt property from the estate.

Section 522(g)(1) protects an involuntary transfer of a leasehold that was not concealed by the debtor.

Bell v. Philadelphia Housing Authority (In Re Bell) · filed 1989-03-10§ 522(g)(1)

It also seems clear that the Debtor is empowered to invoke § 522(g)(1), as the “transfer” of his leasehold was not voluntary and the Premises was not concealed by the Debtor.

Exemption law is determined under the law in effect on the date the bankruptcy petition was filed.

Watson v. Kincaid (In Re Kincaid) · filed 1989-03-16§ 522(b)(2)(A)

Thus, the Code expressly requires that the law in effect on the date of the petition be applied to determine whether property is exempt.

A debtor cannot claim an exemption under § 522(g) or (h) for property voluntarily transferred to repay a preexisting debt, including a transfer to a family member made from moral obligation or fear of collection.

In Re Trevino · filed 1989-02-24§ 522(g) and (h)

a transfer of property to a family member to repay prior financial assistance is not involuntary in the absence of other extenuating circumstances.

Section 522(f) does not allow avoidance of judgment liens for wages when the applicable homestead exemption excludes wage claims.

Davis v. Lester (In re Davis) · filed 1989-02-27§ 522(f)

The exemption is not applicable to judgment liens for wages and the prayer of the complaints should be denied and the judgment liens shall remain in full force and effect.

Section 522(g) permits a debtor to use the trustee’s avoidance powers when the lien was involuntary and impairs an interest in property the debtor may exempt.

McLean v. City of Philadelphia, Dept. of Revenue (In Re McLean) · filed 1989-03-20§ 522(g)

The debtor may utilize these trustee powers pursuant to 11 U.S.C. § 522(g), (h) so long as the lien was involuntary and impairs the debtor’s interest in property which the debtor may exempt.

Section 522(l) makes property claimed as exempt exempt when no party in interest timely objects.

Seifert v. Selby · filed 1989-03-20§ 522(l)

By statute, property claimed as exempt is exempt, unless a party in interest timely objects.

Section 522(d)(10)(E) does not exempt compensation that is a tort-settlement payment rather than a payment based on age or length of service.

In Re Powers · filed 1989-03-20§ 522(d)(10)(E)

Turning attention to § 222.201 Fla. Stat. and 11 U.S.C. § 522(d)(10)(E), the Court is likewise satisfied that the Debtor’s claim of exemption based upon his contention that the compensation represents a payment on account of Debtor’s length of service and his age must also fail.

Section 522(k) protects exempt property from liability for administrative expenses, subject to limited exceptions.

In Re Duby · filed 1989-03-29§ 522(k)

Since § 522(k) specifically prohibits the payment of administrative expenses from the proceeds of the sale of a debtor’s exempt property (except in two isolated instances not applicable here), the Trustee is directed to pay the debtors their full exemption, after receiving back the taxes paid to the IRS and the Rhode Island Division of Taxation.

Section 522(d) gives each debtor in a joint case a separate set of federal exemptions, so the exemption amounts are doubled.

Pinto v. Philadelphia Fresh Food Terminal Corp. (In Re Pinto) · filed 1989-03-30§ 522(d)

entitled to the exemptions set forth at § 522(d), thus doubling the value of those exemptions in the calculations as to both Debtors here.

Section 522(f)(1) turns on whether a judicial lien impairs the debtor’s interest in exempt property.

In Re Girard · filed 1989-03-31§ 522(f)(1)

The critical determination under § 522(f) is whether or not a judicial lien “impairs” a debtor’s interest in exempt property to which the lien is attached.

Section 522(b)(2)(A) determines exemption rights under the law applicable on the bankruptcy petition date.

Kaplan v. Primerit Bank (In Re Kaplan) · filed 1989-04-05§ 522(b)(2)(A)

We hold that the bankruptcy court properly concluded that September 3, 1986, the filing date of the debtor’s Chapter 11 petition, controlled the time for determining the debtor’s claim of exemption for his interest in the Kaplan Plan. Section 522(b)(2)(A) specifically provides that the controlling law is that “applicable on the date of the filing of the petition.”