11 U.S.C. § 522

Section 522(f) permits lien avoidance only when the lien impairs an exemption to which the debtor would be entitled.

Holtzhauser v. Holtzhauser (In Re Holtzhauser) · filed 1990-06-26§ 522(f)

A lien may be avoided under Section 522(f) only if it “impairs an exemption to which the debtor would be entitled ...” under applicable state or federal law.

Section 522(b)(2) does not exempt the debtor’s interest in a pension plan under nonbankruptcy federal law when no qualifying federal exemption applies.

In Re McIntosh · filed 1990-06-26§ 522(b)(2)

Therefore, Debtor’s interest in the Plan is not exempt under nonbankruptcy federal law pursuant to § 522(b)(2).

Section 522(d) permits a debtor to claim a homestead exemption in a marital home despite lacking legal title, to the extent the debtor has an equitable interest.

In Re Wainsztein · filed 1990-06-26§ 522(d)

The debt- or does not own legal title to the property which he has listed as exempt under 11 U.S.C. § 522(d), however, the property constitutes the debtor’s marital home to which he contributes monetarily.

Section 522(f) does not permit avoidance of federal tax liens that have not merged into judgment liens.

Jones v. United States (In Re Jones) · filed 1990-06-28§ 522(f)

debtors may not avoid the liens for taxes through 1980 on their home because the liens did not merge into any judgments and become judicial liens.

Section 522(f)(2)(B) treats property exempt as a farm tool or implement under Iowa law as a tool of the debtor’s trade for lien avoidance.

In Re Indvik · filed 1990-07-09§ 522(f)(2)(B)

if an item is exempt as a farm tool or implement under Iowa Code § 627.6(ll)(a), the item is also a tool of the trade under 11 U.S.C. § 522(f)(2)(B).

Section 522(b)(2)(A) treats ERISA as another federal exemption law for purposes of exempting protected pension benefits.

In Re Starkey · filed 1990-07-13§ 522(b)(2)(A)

this Court concludes that ERISA must be considered to be another federal exemption for purposes of 11 U.S.C. § 522(b)(2)(A).

Section 522(b)(2)(B) permits a debtor’s joint-tenancy interest to be exempt when applicable nonbankruptcy law exempts it from process.

Matter of Tyree · filed 1990-07-16§ 522(b)(2)(B)

pursuant to 11 U.S.C. § 522(b)(2)(B), an estate in joint tenancy may be treated as exempt property and removed from the bankruptcy estate.

Section 522(f)(1) permits avoidance of a judicial lien only to the extent it impairs an exemption and does not permit reallocating a surviving lien to create equity in another parcel.

Fisher v. Pennsylvania, Department of Revenue (In Re Fisher) · filed 1990-07-30§ 522(f)(1)

Such a result is not contemplated by § 522(f) and therefore must be rejected.

Section 522(b)(2)(A) permits a debtor using the state-law route to claim applicable state exemptions and other federal-law exemptions, but not the exemptions in § 522(d).

NCNB Texas National Bank v. Volpe (In Re Volpe) · filed 1990-07-30§ 522(b)(2)(A)

Section 522(b) of the Bankruptcy Code provides a debtor a choice between: (1) the bankruptcy exemption enumerated in Section 522(d) of the Bankruptcy Code; or (2) the applicable state law exemptions, and any other property that is exempt under federal law, other than Section 522(d).

Section 522(c)(2)(B) leaves otherwise exempt property subject to a properly filed valid tax lien.

Dillard v. United States, Internal Revenue Service (In Re Dillard) · filed 1990-07-31§ 522(c)(2)(B)

This provision and opinions construing it make clear that otherwise exempt property is still subject to a valid tax lien.

Section 522(f) permits avoidance of a former spouse’s judicial lien when the lien attaches to the debtor’s interest, impairs an exemption, and otherwise meets the statutory requirements.

In re Showinsky · filed 1990-07-31§ 522(f)

As all three requirements of § 522(f) have been met, the Debtor’s motion to avoid the lien of Ms. Lesperance is granted, and her objection to his claim of exemptions is denied.

Section 522(b)(2)(A) does not exempt ERISA plans as a separate federal exemption.

In Re Gardner · filed 1990-08-03§ 522(b)(2)(A)

Based on the foregoing, the court concluded that § 522(b)(2)(A) does not exempt ERISA plans.

Section 522(c)(2)(A) leaves existing lien creditors’ rights against exempt property unaffected.

Frederick County National Bank v. Lazerow (In Re Lazerow) · filed 1990-08-28§ 522(c)(2)(A)

Existing lien creditors’ rights against the house are unaffected by the exemption. 11 U.S.C. § 522(c)(2)(A).

Section 522(b)(1) sets out the federal exemption list and allows a state to require its debtors to claim state exemptions only.

In Re Vickers · filed 1990-06-26§ 522(b)(1)

Thus, § 522(b)(1) sets out a specific list of Federal bankruptcy exemptions and provides that such exemptions are available to a debtor unless he or she lives in a state which has chosen to “opt-out” by requiring its debtors to claim state exemptions only.

Section 522(f) operates independently of the exemption-listing requirement in § 522(b), so a debtor’s failure to list an item as exempt does not by itself bar lien avoidance when the item could have been exempt.

In Re Barnes · filed 1990-07-11§ 522(f)

Subsections (b) and (f) of Section 522 are independent of each other because of the conditional language of Section 522(f)

Section 522(f)(2)(A) permits avoidance of a nonpossessory, nonpurchase-money lien on exempt household furnishings and goods held for the debtor’s personal, family, or household use.

In Re McKaskle · filed 1990-08-17§ 522(f)(2)(A)

Since the antiques and TV are exempt, are within the terms “household furnishings” or “household goods” and are “held primarily for the personal, family, or household use of the debtor,” Blazer’s lien' on them may be avoided pursuant to 11 U.S.C. § 522(f)(2)(A).

Section 522(b)(2)(A) does not exempt a pension plan as a separate federal exemption when ERISA is not treated as qualifying federal law.

In Re Smith · filed 1990-09-07§ 522(b)(2)(A)

Based on the weight of authority this Court is satisfied that ERISA does not qualify as a separate federal exemption for purposes of § 522(b)(2)(A)

Section 522(c)(2) preserves tax liens from avoidance, so an IRS lien remains secured by exempt collateral.

In Re Hall · filed 1990-09-07§ 522(c)(2)

which, in simplified terms, excepts tax liens from' both the trustee’s and the debtor’s avoidance powers, including avoidance under sections 506(d) and 522(f).

Section 522(c) allows a creditor to retain a lien on exempt property when it has not been avoided and specifically protects tax liens.

McCullough v. United States (In Re McCullough) · filed 1990-09-11§ 522(c)

Essentially, this provision allows a creditor to retain a lien on exempted property if it has not been avoided under section 506(d) or if it is a tax lien.

Section 522(f) does not permit avoidance of an enforceable property-settlement agreement and deed of trust securing a former spouse’s claim.

In Re Stone · filed 1990-09-17§ 522(f)

§ 522(f) provides no means of avoiding this property settlement agreement and deed of trust on the debtor’s residence.

Section 522(b)(2)(A) does not exempt an ERISA pension plan merely because ERISA is federal law.

Matter of Lee · filed 1990-09-18§ 522(b)(2)(A)

The answer is no.

Section 522(b)(1) makes the federal exemption route unavailable in a state that has opted out of § 522(d).

Matter of Lingle · filed 1990-09-25§ 522(b)(1)

Therefore, 11 U.S.C. § 522(b)(1) is inapplicable.

Section 522(f)(1) permits avoidance of a judicial lien to the extent it impairs the debtor’s available exemption.

In Re Harris · filed 1990-09-26§ 522(f)(1)

The judicial lien is avoidable to the extent to which the judicial lien is determined to impair the available exemption.

Section 522(f)(2) permits avoidance of a nonpossessory, nonpurchase-money lien on crops only when the crops are held primarily for the debtor’s personal, family, or household use.

In re Dana · filed 1990-09-27§ 522(f)(2)

Under that section a nonpossessory nonpurchase-mon-ey security interest in crops that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor may be avoided.

Section 522(d)(10)(C) exempts workers’ compensation benefits from the bankruptcy estate.

Alltop v. Alltop · filed 1990-09-28§ 522(d)(10)(C)

workers’ compensation benefits are exempt from the bankrupt’s estate under the United States Bankruptcy Act (Bankruptcy Act) (11 U.S.C. §522(d)(10)(C) (1988)).

Section 522(b)(2)(A) fixes the applicable state exemption law as the law in effect on the petition filing date, including in involuntary cases.

In Re Peacock · filed 1990-10-03§ 522(b)(2)(A)

both the plain meaning of § 522(b)(2)(A) and overwhelming judicial precedent establish that the date of the filing of the petition, whether voluntary or involuntary, determines the applicable state exemption law.

Section 522(f)(1) permits avoidance of a judicial lien impairing an exemption even when the underlying debt is nondischargeable.

In Re Gartrell · filed 1990-10-18§ 522(f)(1)

Congress has not declared the underlying nature of a debt to have any affect on the Debtor’s right to invoke the lien avoidance provision of § 522(f).

Section 522(c)(2)(B) does not abrogate § 506(d)’s treatment of tax liens merely because § 522(c)(2) does not mention § 506(d).

In Re Krahn · filed 1990-10-22§ 522(c)(2)(B)

the mere failure to note the application in § 522(c)(2), cannot be read to abrogate the privilege granted in § 506(d).

Section 522 permits only the debtor or the debtor’s dependent to claim property as exempt.

Hollis v. State Employees’ Retirement System of Illinois (In Re Brenda Groves) · filed 1990-10-23§ 522(b)

Section 522 of the Bankruptcy Code is quite clear that only the debtor or a dependent of the debtor can exempt property from the estate.

Section 522(f) permits a debtor to avoid a judicial lien despite a prepetition waiver of the exemption, but only to the extent the lien impairs the exemption.

In Re Smith · filed 1990-09-07§ 522(f)(1)

permits the Debtor to avoid such liens “notwithstanding any waiver” of the exemption.

Section 522(b)(2) makes the scope of a state-law exemption depend on state law.

In Re Hayes · filed 1990-09-10§ 522(b)(2)

The Bankruptcy Code permits debtors to exempt property from distribution to creditors pursuant to provisions of state law, and the scope of the exemption is fixed by state law. 11 U.S.C. § 522(b)(2).

Section 522(b)(2)(A) does not treat ERISA as a separate federal exemption law.

In re Smith · filed 1990-09-19§ 522(b)(2)(A)

ERISA is not the “federal law” addressed under § 522(b)(2)(A).

Section 522(f) authorizes avoidance of judicial liens that impair the debtor’s homestead exemption.

In Re Bradlow · filed 1990-09-21§ 522(f)

concludes that § 522(f) authorizes the avoidance of the creditor’s liens in that the liens impair the debtor’s homestead exemption.

Section 522(b) allows a debtor to remove a prepetition cause of action from the estate by claiming and obtaining a statutory exemption for it.

In Re Medill · filed 1990-10-09§ 522(b)

An individual debtor may remove a pre-petition right of action from the estate by claiming, and being allowed, a statutory exemption for the right. 11 U.S.C. § 522(b).

Section 522(b)(2)(A) limits exemptions to federal, state, or local law applicable on the petition filing date.

In Re Locke · filed 1990-10-29§ 522(b)(2)(A)

Such exemptions are allowed pursuant only to those federal, state or local laws applicable on the filing date of the petition. 11 U.S.C. Section 522(b)(2)(A)

Section 522(k)(1) does not surcharge an exemption for administrative expenses when the case does not involve avoiding or recovering property under subsection (g).

In Re Barlock · filed 1990-10-29§ 522(k)(1)

Therefore, § 522(k)(l) is inapplicable to the facts at bar.

Section 522(d)(10)(E)(i) describes an exemption for payments under qualifying retirement and similar plans, subject to its statutory insider-plan exception.

Matter of Anzalone · filed 1990-10-31§ 522(d)(10)(E)(i)

This federal bankruptcy statute provides an exemption for payments under a stock bonus, pension, profit sharing, annuity, or similar plan or contract.

Section 522(b)(2)(A) does not treat ERISA plans as a separate federal exemption.

In Re Spears · filed 1990-11-01§ 522(b)(2)(A)

Based on the weight of authority, this Court is satisfied that ERISA does not qualify as a separate federal exemption for purposes of 11 U.S.C. § 522(b)(2)(A).

Section 522(f) does not permit avoidance of a judicial lien absent a judicial sale or other involuntary execution impairing the exemption.

Matter of Brown · filed 1990-11-21§ 522(f)

absent a judicial sale or other form of involuntary execution the judicial lien on the debtors' residence cannot be avoided.

Section 522 permits a debtor to choose bankruptcy or nonbankruptcy exemptions and claim qualifying property exempt from the estate.

In Re Barlage · filed 1990-11-21§ 522(b)

The debtor may then chose either bankruptcy or nonbankruptcy exemptions and claim certain property as exempt from the property of the estate. 11 U.S.C. § 522.

Section 522(f)(2) permits avoidance of a nonpossessory, nonpurchase-money lien against qualifying exempt household property even when the property is not a necessity of life.

In Re Adkins · filed 1990-11-21§ 522(f)(2)

is avoidable and the Property exempt for the following reasons.

Section 522(d)(10)(E) limits pension-benefit exemptions to the amount reasonably necessary for the debtor’s support.

In Re Nadler · filed 1990-12-04§ 522(d)(10)(E)

benefits in excess of support needs would thereby be unavailable to creditors, a result contrary to the clear intent of the exemption granted by § 522(d)(10)(E).

Section 522(a)(2) requires a possible claim to be valued at fair market value as of the petition filing date.

Pittsburgh National Bank v. Wissman (In re Wissman) · filed 1990-12-07§ 522(a)(2)

This is a correct statement of law under 11 U.S.C. § 522(a)(2).

Section 522(l) bars a merits challenge after an untimely objection, but requires a good-faith statutory basis for the claimed exemption.

In Re Steven L. Peterson · filed 1990-12-10§ 522(l)

the bankruptcy court need only decide whether the debtor had a good-faith statutory basis for it.

Section 522(i) implicitly requires a statutory basis for a claimed exemption before failure to object gives it legal effect.

In the Matter of Adelle M. Sherk · filed 1990-12-11§ 522(i)

Section 522(i) contains an implicit “additional requirement that there be a statutory basis for the claimed exemption before the failure of any party in interest to timely object to it has any legal effect.”

Section 522(b) requires a debtor to choose either the federal exemptions in subsection (b)(1) or the state and non-§ 522(d) federal exemptions in subsection (b)(2).

In Re Rosenquist · filed 1990-12-18§§ 522(b)(1), (b)(2)

The first sentence of Section 522(b) clearly requires a debtor to choose between subparagraphs (b)(1) and (b)(2) of Section 522, not to choose both or some of both.

Section 522(f)(1) permits avoidance of judicial liens to the extent they impair the debtor’s homestead exemption.

In Re Serapiglia · filed 1990-12-24§ 522(f)(1)

The debtor is entitled to avoid Smith-town’s judicial liens to the extent that they exceed present fair market value of his entirety interest reduced by unavoidable encumbrances and the debtor’s homestead exemption.

Section 522(f)(2)(A) permits avoidance of liens on exempt household goods, furnishings, and jewelry, with state law defining the exemption and federal law defining the lien-avoidance categories.

In Re Reid · filed 1990-12-28§ 522(f)(2)(A)

federal law determines the availability of the lien avoidance provision.

Section 522(b)(2)(A) permits a debtor to use applicable Wisconsin exemptions, including a homestead exemption covering land reasonably necessary for the home up to the statutory limit.

In Re Burgus · filed 1990-12-28§ 522(b)(2)(A)

Wisconsin state law.

Section 522(b)(2)(A) permits Florida pension-plan benefits to be retained as exempt property when the applicable state exemption is not preempted by ERISA.

In Re Gurvich · filed 1990-12-28§ 522(b)(2)(A)

the benefits accruing from the pension plan in question may be retained by the Debtor as exempt property under 11 U.S.C. Section 522(b)(2)(A)

Section 522(b) allows an opt-out state to limit its debtors to state-law exemptions rather than the federal exemptions in § 522(d).

In Re Millsap · filed 1991-01-18§ 522(b)

Idaho has “opted-out” of the federal bankruptcy exemptions, and its citizens are limited to the exemptions allowed under state law. 11 U.S.C. § 522(b)

Section 522(f)(1) is unavailable when the judicial lien does not impair the debtor’s applicable homestead exemption.

In Re Dore · filed 1991-02-08§ 522(f)(1)

Section 522(f)(1) is unavailable to avoid the judicial lien of Mission Federal. Debtor’s homestead exemption of $30,000 is unimpaired by the judicial lien.

Section 522(h) requires the debtor to establish entitlement to an exemption before using the trustee’s avoidance power to recover an involuntary transfer.

Coker v. Bank of Cabot (In re Coker) · filed 1991-02-22§ 522(h)

In summary, the debtor has not established entitlement to a homestead exemption and hence, cannot meet all the requirements outlined in section 522(h) in order to prevail.

Section 522(d) provides federal bankruptcy exemptions, but a state may opt out of those exemptions under § 522(b)(1) and substitute its own bankruptcy exemption scheme.

In Re Shumaker · filed 1991-03-06§ 522(d)

As can be readily discerned from the statute, Montana has opted-out of the federal exemptions allowed under 11 U.S.C. § 522(d).

Section 522(f)(1) permits avoidance of a judicial lien only to the extent the lien impairs the debtor’s otherwise available exemption; any excess remains valid and enforceable.

In Re Sanglier · filed 1991-03-08§ 522(f)(1)

For the reasons stated, we hold that § 522(f)(1) does not permit a debtor to void a judicial lien to the extent it exceeds the amount by which a debtor’s otherwise available exemption is impaired.

Because Maryland opted out of the federal exemption scheme, § 522(b) makes Maryland law control whether and to what extent a debtor may exempt an interest in entireties property.

In Re RL Kelly and Sons, Millers · filed 1991-03-14§ 522(b)

Maryland has opted out of the Bankruptcy Code’s federal exemptions, and therefore Maryland law dictates the extent to which a debtor may claim exemptions in entireties property. 11 U.S.C. § 522(b); Md.Cts. & Jud.Proc.Code Ann. § ll-504(g) (1989 Repl.Vol.).

Section 522(c)(2)(B) leaves exempt property liable for a prepetition tax debt secured by a properly noticed tax lien.

Rench v. United States, Internal Revenue Service (In Re Rench) · filed 1991-03-21§ 522(c)(2)(B)

Property exempted under § 522 remains liable after the case for any pre-petition debt secured by a tax lien, notice of which is properly filed.

Section 522(h) allows a debtor to exercise unused trustee avoidance powers only when the transfer satisfies the conditions in § 522(g)(1), including that it was not voluntary.

In Re Hancock · filed 1991-04-03§ 522(h)

Limiting language in 11 U.S.C. § 522(h) structures Debtors’ avoidance powers on compliance with 11 U.S.C. § 522(g)(1), which requires a finding, as a prerequisite to Debtors’ assertion of avoidance of transfers, that “such transfer was not a voluntary transfer of such property by the debtor” or that “the debtor did not conceal such property.”

Section 522(f)(1) permits avoidance of a judicial lien after property has been seized but before all state-law steps required to satisfy the judgment are completed, to the extent the lien impairs the exemption.

In Re Rivet · filed 1991-04-01§ 522(f)(1)

Our reading of § 522(f)(1) precludes agreement with his contention.

Section 522(f)(1) makes a judicial lien avoidable only to the extent it impairs the debtor’s homestead exemption, so a lien that does not impair the exemption is not avoidable.

In Re Spearman · filed 1991-03-14§ 522(f)(1)

the senior judicial lien of EAB does not impair the debtor’s homestead exemption, and therefore is not avoidable by the debtor.

Section 522(f)(1) permits lien avoidance only when the lien attaches to the debtor's property interest, impairs an otherwise available exemption, and is a judicial lien.

In Re Oscar Leo Taylor, Jr., Doing Business as Taylor/syler, Doing Business as Trs Aircraft, Debtor. Oscar Leo Taylor, J · filed 1991-04-04§ 522(f)(1)

Three factors must be satisfied before a lien can be avoided under 11 U.S.C. Sec. 522(f)(1): (1) the lien must attach to an interest of the debtor in property; (2) the lien must impair an exemption to which the debtor would otherwise be entitled; and (3) the lien must be a judicial lien, see Maus, 837 F.2d at 938.

Section 522(f)(1) cannot avoid a mortgage because subsection (f)(1) targets judicial liens, not security interests.

In Re Rice · filed 1991-04-19§ 522(f)(1)

However, Fleet’s mortgage is not a “judicial lien,” which may properly be the target of a § 522(f)(1) motion; rather, it is a “security interest.”

Section 522(f)(2) allows lien avoidance for tools of the trade exempted under the wild-card exemption, even when their total value exceeds the cap in § 522(d)(6).

First National Bank of Park Falls v. Maley · filed 1991-04-08§ 522(f)(2)

I agree with the bankruptcy judge’s conclusion that since Maley would have been entitled to an exemption under both subsection (d)(5) and (6) for her tools, she is entitled to avoid the lien on all of the exempted tools under subsection (f), even if the total value of the tools for lien avoidance purposes exceeds the $750 cap in subsection (d)(6).

Under § 522(f)(2)(B), the meaning of “tools of the trade” depends on the exemption law and may include larger equipment used in the debtor’s trade.

In Re Stallsworth · filed 1991-04-17§ 522(f)(2)(B)

To recap then, the meaning of “tools of the trade” for lien avoidance under 522(f)(2)(B) depends on the character of that term under the law which provides the exemption. ... The Court therefore concludes that under Indiana law, tools of the trade subject to exemption are not limited to small hand tools, but may include larger equipment used in a debtor’s trade.

Section 522(c)(1) concerns whether exempt property is subject to prepetition liabilities, but it does not limit a debtor's separate right to invoke § 506.

Dembo v. United States, Department of the Treasury, Internal Revenue Service (In Re Dembo) · filed 1991-04-22§ 522(c)(1)

We fail to see how § 522(c)(1) or (c)(2)(B) limits the scope of § 506. Section 522 of the Code relates directly to exempt property. Rights arising under § 522, such as § 522(f), are distinct from those arising under § 506.

Section 522(d)(1) does not apply in Missouri because the state exercised its option to deny residents the federal exemption.

In Re Hentzen · filed 1991-04-24§ 522(d)(1)

This Court finds that the State of Missouri has exercised its option under the Bankruptcy Code to deny its residents the right of exemptions set out in 11 U.S.C. § 522(d)(1).

Conversion of nonexempt property into exempt property is permissible unless accompanied by extrinsic evidence of fraud; a transfer legitimate under established state law reflects exercise of a valid right rather than intent to defraud.

Abbott Bank-Hemingford v. Armstrong · filed 1991-04-24§ 522

If a type of transfer is legitimate under established state law, the intent to effect such a transfer is merely the intent to exercise a valid right rather than an intent to defraud.

Section 522(b)(2)(A) does not exempt ERISA plan funds as property exempt under federal law other than § 522(d).

In Re Fullmer · filed 1991-05-09§ 522(b)(2)(A)

Additionally, even if the federal exemptions were open to the Fullmers, funds in an ERISA plan do not constitute property exempt under “federal law other than § 522(d),” and thus do not fall within the broad exemption of § 522(b)(2)(A).

Section 522(c) preserves an unavoided lien on exempt property when no applicable Bankruptcy Code provision permits lien avoidance.

VanGorp v. Norwest Financial Wyoming, Inc. (In re VanGorp) · filed 1991-05-09§ 522(c)

Under subsection (c), it is very clear that if the exempt property in question is one for which a lien cannot be avoided, under another subsection of 522 or another section of the Bankruptcy Code, then the property remains subject to such lien by virtue of § 522(c).

Section 522(b)(2)(B) permits an individual debtor to exempt entireties property only to the extent the debtor’s interest is exempt under applicable state law.

Ames v. Wickham (In Re Wickham) · filed 1991-05-13§ 522(b)(2)(B)

Section 522(b)(2)(B) allows an individual debtor to exempt property held as a tenant by the entirety to the extent that interest is exempt under state law.

Section 522(b)(2)(B) permits an exemption for entireties property only to the extent that the interest was exempt from process under applicable nonbankruptcy law immediately before the bankruptcy case began.

In Re Kimmel · filed 1991-05-13§ 522(b)(2)(B)

However, Section 522(b)(2)(B) authorizes a debtor to exempt any interest in property in which the debtor had, immediately before the commencement of the case, an interest as a tenant by the entirety or joint tenant to the extent that such interest is exempt from process under applicable non-bankruptcy law.

Section 522(f)(1) permits avoidance of judicial liens impairing an exemption, but does not permit avoidance of a consensual lien created by agreement before judicial action.

In Re Inman · filed 1991-05-15§ 522(f)(1)

The Assignment was not obtained by judgment or through any other legal proceeding and does not constitute a “judicial lien”. Consequently, the Court finds that the Assignment is not a judicial lien and cannot be avoided pursuant to 11 U.S.C. § 522(f)(1).

Section 522(f)(1) requires the debtor to have possessed the property interest before the lien attached to that interest in order to avoid the fixing of the lien.

Farrey v. Sanderfoot · filed 1991-05-23§ 522(f)(1)

We hold that § 522(f)(1) of the Bankruptcy Code requires a debtor to have possessed an interest to which a lien attached, before it attached, to avoid the fixing of the lien on that interest.

Section 522(f)(1) measures impairment against the exemption the debtor would have been entitled to but for the judicial lien, including state exemptions selected under § 522(b).

Owen v. Owen · filed 1991-05-28§ 522(f)(1)

The provision refers to the impairment of “exemption[s] to which the debtor would have been entitled under subsection (b),” and that includes federal exemptions and state exemptions alike.

Section 522(b)(2)(B) exempts a property interest only to the extent it is protected from the particular judicial process at issue.

In Re Digaudio · filed 1991-06-03§ 522(b)(2)(B)

Section 552(b)(2)(B) grants the exemption “to the extent” the property interest is exempt from process. Although in using this phrase Congress may well have had in mind any dollar limitations contained in state exemption laws, the provision is equally apt as a description of an exemption from some judicial process but not from others.

A debtor’s conversion of nonexempt property into exempt property is not grounds to deny the exemption absent extrinsic evidence of fraud, such as intentionally misleading creditors or using credit to buy exempt property.

In re Armstrong · filed 1991-06-10§ 522

The sort of indicia of fraud necessary to find fraudulent use of an exemption would be, inter alia, conduct intentionally designed to materially mislead or deceive creditors about the debtors' position, see Johnson, 880 F.2d at 82, or use of credit to buy exempt property. See Hanson, 848 F.2d at 869.

Section 522(f)(2)(A) does not permit avoidance of a lien on firearms because firearms are not household goods, even when held primarily for personal, family, or household use.

McGreevy v. ITT Financial Services · filed 1991-06-19§ 522(f)(2)(A)

Because it is clear that firearms are not “household goods,” liens on firearms cannot be avoided even if the firearms are held primarily for the personal, family or household use of the debtor or dependant of the debtor.

Section 522(b)(1) permits a state to opt out of the federal exemption list and establish the exemptions available in bankruptcy under state law.

In Re Ross · filed 1991-06-19§ 522(b)(1)

California has exercised its right under § 522(b)(1) to “opt out” of the federal list of exemptions and to establish by state law the nature and maximum amount of exemptions available in bankruptcy cases.

Section 522(f) does not permit a debtor to avoid a seller’s valid purchase-money security interest securing only the unpaid purchase price of the collateral.

Matter of Wiegert · filed 1991-06-21§ 522(f)

Accordingly, Sears holds a valid purchase money security interest in any items which remain unpaid and its lien may not be avoided under 11 U.S.C. § 522(f).

Section 522(g)(1)(A) permits a debtor to avoid an otherwise avoidable transfer only when the transfer was not voluntary.

In Re Driver · filed 1991-06-26§ 522(g)(1)(A)

However, under section 522(g) and (h), if the trustee does not attempt to avoid a transfer that is avoidable under section 544 and the property subject to the transfer would be subject to exemption, the debtor is empowered to avoid the transfer, but only if the transfer was not voluntary.

Section 522(b) permits a Chapter 7 debtor to elect exemptions available under applicable state law.

In Re Patricia G. Carey · filed 1991-07-05§ 522(b)

Under 11 U.S.C. § 522(b), a debtor may choose the exemptions provided by applicable state law.

Section 522(c)(1) leaves exempt property liable for a qualifying nondischargeable tax debt.

Hebermehl v. United States ex rel. Internal Revenue Service (In Re Kuhr) · filed 1991-07-17§ 522(c)(1)

In the alternative, section 522(c)(1) is available to the IRS in that the taxes which it seeks to collect are nondis-chargeable pursuant to section 523(a)(1) as a tax owing under section 507(a)(7).

A consensual lien under an executory land-sale contract remains a secured interest and cannot be transformed into an avoidable judicial lien by foreclosure proceedings.

In re Krueger · filed 1991-05-20§ 522(f)

The foreclosure effort in state court cannot affect the nature of this security interest by changing it to an avoidable judgment lien under Section 522(f). The Metropolitan lien is in the nature of a consensual lien.

Section 522(d)(10)(E) provides only a limited exemption for present pension payments reasonably necessary for the debtor’s support, not a general exemption for retirement-plan interests.

In Re Comp · filed 1991-06-13§ 522(d)(10)(E)

Subsection 522(d)(10)(E) deals with an exemption of a very limited nature; the obvious corollary is that the majority of existing pension plans will be included in the debtor’s estate.

Section 522(b)(2)(A) makes applicable state law determine whether property is exempt when the state has opted out of the federal exemptions.

In Re Cella · filed 1991-07-02§ 522(b)(2)(A)

Thus, the Court must look to applicable State law to determine whether Debtor is entitled to claim the Death Benefits as exempt from property of the bankruptcy estate.

Section 522(d)(11)(D) permits a debtor to retain up to the statutory personal-injury exemption from settlement proceeds, while the balance remains available to the trustee.

In Re Patterson · filed 1991-07-03§ 522(d)(11)(D)

Therefore, $7,500.00 of the net proceeds (after paying the trustee’s fee and the attorneys’ fees) will be paid over to the Debt- or as her exempt property under Section 522(d)(ll)(D). The balance is available to the trustee for distribution to creditors.

In an opt-out state, a debtor may claim a personal-injury exemption under state law when the trustee cannot prove that the settlement falls outside the exempt category.

Lester v. Storey (In Re Lester) · filed 1991-07-24§ 522(b)

the exemption must therefore be allowed.

Section 522(f) allows a creditor that did not timely object to an exemption to challenge the exemption’s validity when defending a lien-avoidance motion, because default validation under § 522(l) does not establish entitlement under § 522(b).

Morgan v. Federal Deposit Insurance (In Re Morgan) · filed 1993-01-12(f), (l)

For all of the foregoing reasons, we conclude that a creditor who has not timely objected to a claim of exemption may nevertheless challenge the validity of the exemption when defending a lien avoidance motion under § 522(f).

Section 522(c)(2)(B) leaves exempt property available to satisfy a prepetition debt secured by a properly filed tax lien, even after discharge.

Quillard v. United States (In Re Quillard) · filed 1993-01-15§ 522(c)(2)(B)

Therefore, even after discharge is entered, property claimed as exempt under § 522 remains available to satisfy any pre-petition debt secured by a valid tax lien, when notice of the lien has been properly filed.

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

In Re Glen H. Huebner, Debtor. Glen H. Huebner v. Farmers State Bank, Grafton, Iowa · filed 1993-02-26(b)

Section 522(b) of the Bankruptcy Code, 11 U.S.C. § 522(b), permits a debtor to choose between the federal exemptions provided in § 522(d) and the exemptions provided under state law, unless state law “vetoes” the debtor’s option to choose the federal exemptions.

Section 522(l) makes property claimed as exempt exempt when the trustee does not timely object, even if the debtor does not own the property.

Gilbert v. Zimmer (In Re Gilbert) · filed 1993-05-20§ 522(l)

Therefore, this court concludes that whatever ... property ... is claimed by a debtor as exempt — whether owned by the debtor or not — is exempt if the trustee does not object within the applicable time limit.

Section 522(b) permits a debtor to claim statutory exemptions, subject to a state’s choice to opt out of the federal exemption scheme.

In Re Modansky · filed 1993-10-05§ 522(b)

Pursuant to 11 U.S.C. § 522(b), an individual debtor may elect to claim certain property listed by the statute as exempt property.

Section 522(b)(2)(A) measures state-law exemption eligibility under the law applicable on the petition filing date, so later amendments do not change the debtor’s exemption rights.

Matter of Pedersen · filed 1993-06-16§ 522(b)(2)(A)

The amendment has no effect on Debtors' exemption rights in this case.

Section 522(f)(1) measures equity using the combined value of properties securing one wrap-around mortgage when deciding whether a judicial lien impairs an exemption.

Frameli v. Reed Oil Co. (In Re Frameli) · filed 1993-06-16§ 522(f)(1)

There is no requirement that the value of ... the property in which the exemption has been claimed be set against the amount due and owing on the wrap-around mortgage in determining whether debtor has any equity for purposes of section 522(f)(1).

Section 522(b)(2)(A) fixes state-law exemption rules as of the petition-filing date, so a later Iowa amendment did not change the debtors’ exemption rights.

Hannan v. Public Employees Benefit Services Corp. (In re Pedersen) · filed 1993-06-16§ 522(b)(2)(A)

The amendment has no effect on Debtors’ exemption rights in this case.

Section 522(f)(1) permits complete avoidance when a judicial lien entirely impairs the available exemption.

Osborne v. Dominion Bank, N.A. (In Re Osborne) · filed 1993-06-21§ 522(f)(1)

In this instance, the Debtors have an available exemption of $3,600.00, determined by subtracting the first lien deed of trust from the residence’s stipulated value.

Section 522(b)(1) permits a state to opt out of the federal exemptions, leaving its residents to claim only exemptions authorized by state law.

Matter of Slentz · filed 1993-07-12§ 522(b)(1)

Indiana has exercised its opportunity to opt out of the federal bankruptcy exemptions. ... Accordingly, its residents may only claim exemptions in the property specified by Indiana law.

Section 522(f)(1) does not permit avoidance of a divorce lien when the debtor never possessed the interest to which the lien attached before it attached.

In Re Catli · filed 1993-07-26§ 522(f)(1)

Our decision is consistent with the language and purpose of § 522(f)(1). Section 522(f)(1) does not concern itself with liens affixed on a debtor’s interest before the debtor acquired that interest.

Section 522(f) permits a debtor to claim a state homestead exemption even when the property is not subject to an execution, garnishment, attachment, or judicial sale.

In Re Mershman · filed 1993-08-19§ 522(f)

The fact that the residence of the Debtors in the present case, is not subject to an “execution, garnishment, attachment or judicial sale” is not dispositive of their ability to claim their exemption.

Section 522(f) permits debtors to avoid household-goods liens only when the liens are nonpossessory and non-purchase-money.

Regency Consumer Discount Co. v. Beransen (In Re Beransen) · filed 1993-04-02(f)

The Debtors cannot use § 522(f) to avoid the alleged lien because § 522(f) allows the avoidance of liens in household •goods only if they are “nonpossessory, non-purchase-money security interests”.

Section 522(d) allows a debtor to exempt some property from the bankruptcy estate to obtain a fresh start.

Christians v. Crystal Evangelical Free Church (In Re Young) · filed 1993-04-14(d)

Section 522 allows a debtor to exempt some property from the estate in order to allow the debtor to get a fresh start.

Section 522(f) allows a debtor to avoid a judicial lien only insofar as it impairs an otherwise available exemption, and this lien did not impair the homestead exemption because the property value exceeded it.

O'Brien v. Nachtigal (In Re O'brien) · filed 1993-04-15(f)

This court concludes that the lien of Katherine O’Brien does not impair the homestead rights of Patrick O’Brien to the extent that the value of the property as determined by Judge Nachtigal exceeds the homestead exemption of Patrick O’Brien.

Section 522(f) permits avoidance of a judicial lien only to the extent that it diminishes the value of the debtor’s exemption.

In Re Sandor Chabot in Re Betty B. Chabot, Debtors. City National Bank v. Sandor Chabot Betty B. Chabot · filed 1993-04-16(f)

Under the plain meaning of the statute, then, an exemption is not impaired unless its amount is diminished in value.

Section 522(b) lets a bankruptcy debtor choose property exempt under applicable state law, making that state’s law govern the exemption question.

In Re: Daniel J. Berens, Debtor, Daniel J. Berens v. Hall, Byers, Hanson, Steil & Weinberger, P.A. · filed 1993-04-26(b)

A debtor filing bankruptcy may claim certain property as exempt from the claims of creditors pursuant to 11 U.S.C. § 522(b) (1988). Under section 522(b), a debtor can choose to exempt from property of the estate that property which is exempt under the applicable state law.

Section 522(b) makes the exemption question contingent on the property first being part of the bankruptcy estate.

In Re Basil N. Spirtos, Debtor. Basil N. Spirtos v. Moreno · filed 1993-05-11(b)

The exemption question arises only if the plans are first determined to be property of the estate. 11 U.S.C. § 522(b).

Section 522(g) limits the debtors’ possible exemption in the refund, which they had not listed as property of the estate.

In re Walton · filed 1993-06-02(g)

Although the Debtors did not list the Refund as property of the estate on their bankruptcy schedules, they may be able to claim an exemption in the Refund. Such an exemption would be limited by 11 U.S.C. § 522(g) of the Bankruptcy Code.

Under § 522(f)(2)(B), a debtor cannot avoid a nonpossessory, nonpurchase-money lien on a vehicle as a tool of the trade when the vehicle merely transports the debtor and tools to work and is not actually necessary to performing the trade.

In re Johnson · filed 1993-11-10(f)(2)(B)

For the van to be a tool of the trade, however, it must be actually necessary to the trade of plumbing. Debtor’s van does not assist him in the actual performance of his plumbing work.

Section 522(f)(1) does not permit a debtor to avoid a judicial lien after a prior, unopposed court-approved settlement established the lien and exemption, because res judicata bars relitigation.

In re Glenn · filed 1993-11-10(f)(1)

The court holds that the settlement between the trustee and the debtors operates as res judicata to bar the debtors from bringing a motion to avoid VSM’s judicial lien.

Section 522(f) lets a debtor avoid a nonpossessory, nonpurchase-money security interest when the lien impairs an exemption the debtor would otherwise have been entitled to claim.

Goad v. Patrick Henry National Bank (In Re Goad) · filed 1993-11-17(f)

Section 522(f) of Title 11 of the United States Code provides that a debtor may avoid a nonpossessory, nonpurchase-money security interest if such lien impairs an exemption to which the debtor would have been entitled.

A judicial lien that could be enforced in the future impairs the Florida homestead exemption and may be avoided.

In Re Thornton · filed 1995-07-17(f)

The possibility that claimants’ lien could be enforced in the future impairs the exemption to which debtors are entitled.

Section 522(f) lets a debtor avoid a judicial lien to the extent that the lien impairs an exemption.

In re Mollon · filed 1996-09-26§ 522(f)

Section 522(f) of the Bankruptcy Code specifically recognizes the primacy of exemptions over judicial liens by allowing the debt- or to avoid a judicial lien to the extent that it impairs an exemption.

Section 522(f) permits a debtor to avoid a judicial lien when fixing the lien impairs an exemption to which the debtor is entitled.

In Re Blocker · filed 1999-10-13(f)

Section 522(f) of the Bankruptcy Code allows debtors to avoid the fixing of certain judicial hens on interests debtors have in property to the extent such lien impairs an exemption to which debtors are entitled.

Section 522(f) permits a debtor to avoid certain liens impairing exempt property, but does not permit avoidance of a statutory lien when the lien is not a judicial lien.

Lulue v. Oster & Wegener · filed 2001-04-30(f)

The Bankruptcy Code allows debtors to avoid certain liens against property that is claimed as exempt, to the extent that the hen impairs the exemption. 11 U.S.C. § 522(f). However, the Debtor in this case is unable to avoid the lien of Oster & Wegener because it is a statutory lien not a judicial lien.

Section 522(f)(1)(B) permits a debtor to avoid only a nonpossessory, nonpurchase-money security interest in specified personal property, and the § 522(f)(2) formula does not apply unless the lien qualifies under § 522(f)(1)(B).

Buck Green v. GMAC Mortgage Corp. · filed 2003-10-09(f)(1)(B)

Section 522(f)(1)(B) provides that only a nonpossessory, nonpurchase-money security interest in any of the following may be avoided by the debtor: ... Mortgages on real property are not within this description. As the bankruptcy court correctly concluded, since GMAC’s lien is not the type that may be avoided under Section 522(f)(1)(B), the formula under section 522(f)(2) does not apply.

Section 522(f)(1)(B) does not cover a mortgage on real property, so the § 522(f)(2) impairment formula does not apply to that lien.

Green v. GMAC Mortgage Corp. (In Re Green) · filed 2003-10-09(f)(1)(B) and (f)(2)

Therefore, the bankruptcy court properly denied Green’s motion to avoid GMAC’s lien pursuant to 11 U.S.C. § 522(f)(2).

Section 522(f) permits a debtor to avoid judicial liens to the extent they impair the debtor's exemptions, with the bankruptcy court determining the exemption and lien avoidance issues.

Family Savings & Loan Ass'n v. Calabria (In Re Calabria) · filed 1980-06-03(f)

It is the view of this court that the defendants could have removed to the Bankruptcy Court their claims or rights to avoid the judicial liens to the extent that they impaired their exemptions, leaving the basic foreclosure action in the state court, subject to the jurisdiction of that court and limited only by what the Bankruptcy Court might determine as to the priorities between the defendants and the judicial lienors. Similarly, it is concluded that this court can remand to the state court the basic action to foreclose the mortgage except for that portion of it which will involve proceedings under 11 U.S.C. sec. 522 to determine the bankrupt’s exemption in the real estate and the avoidance of any judicial liens upon it.

Section 522(f)(2) permits a debtor to avoid a nonpossessory, nonpurchase-money security interest in exempt household goods to the extent the lien impairs the exemption.

Lucas v. Beneficial Finance Co. (In Re Lucas) · filed 1982-03-03(f)(2)

It is the finding of the Court in the case at bar that avoidance of Defendant’s lien is not violative of the Fifth Amendment taking clause. Although the Court agrees that, as indicated in Rodrock v. Security Industrial Bank, supra, retroactive application of 11 U.S.C. § 522(f) may be violative of the Fifth Amendment, the Court finds that the reasoning of Rodrock is inapplicable to the instant facts. See Conley. The collateral instanter constitutes consumer goods of rapidly declining value, and, as of the Petition filing, was worth less than one-seventh of the original principal. The security interest could not reasonably have been taken to guarantee repayment of the underlying debt. Instead, the instant transaction appears to be a typical consumer loan arrangement in which the security was taken to provide the creditor with leverage to enable collection of debt. Defendant has failed to present evidence to the contrary. The Court finds therefore that Debtor may avoid the subject lien to the extent of exemption impairment, which in this case is for the full value of the collateral.

Section 522(f)(2) permits individual debtors in bankruptcy proceedings to avoid nonpossessory, nonpurchase-money liens on certain property, including liens created during the gap period between the statute's enactment and effective date.

In Re Garry Groves and Virginia Groves, Debtors. United States of America v. Household Finance Company · filed 1983-05-16(f)(2)

In our view, the correct analysis of the present issue is set forth in Webber v. Credithrift of America, Inc., 674 F.2d 796 (9th Cir.1982), cert. denied, --- U.S. ----, 103 S.Ct. 567, 74 L.Ed.2d 931 (1982). There, the court ruled that Congress intended that section 522(f)(2) should apply to "gap period" liens and that the application of section 522(f)(2) to such liens does not violate due process because persons acquiring liens during the "gap period" had notice of the future effect of the Act.

Section 522(f) does not permit a debtor to void judicial liens when the debtor cannot claim an applicable homestead exemption.

Hambric v. Centennial Glass, Inc. · filed 1983-08-05(f)

Since the Debtors cannot calim a homestead exemption the judicial liens cannot be voided pursuant to 11 U.S.C. Section 522(f).

Section 522(f) is a lien-avoidance mechanism, but claiming an exemption need not depend on invoking it where applicable state law already gives the exemption priority over the lien.

Geist v. Converse County Bank · filed 1987-11-03(f)

In its brief, the bank argues that debtors have no right to claim their homestead exemption because its security interest, being properly perfected, is not avoidable under any of the lien avoidance provisions of the Bankruptcy Code. The bank refers this Court to 11 U.S.C. Sections 522(f), 522(e), 544, 545, 548 and 549. ... Where, however, the creditor takes a security interest in the debtor’s homestead property but fails to obtain the requisite waiver, the debtor has no reason to avoid the security interest before claiming the homestead exemption because it has priority over the eonsensually created encumbrance. ... Thus to the extent that the bank’s perfected security interest is non-purchase money, the debtors need not avoid the encumbrance before claiming their exemption because it is, by the absence of a valid waiver, superior to the bank’s ordinary security interest.

Section 522(f) lets a Chapter 7 debtor avoid certain non-consensual liens that impair an applicable exemption, but it does not authorize avoidance of mortgage liens or create a general lien-avoidance power.

Pomilio v. Mers, Homebridge Mortgage Bankers Corp. (In Re Pomilio) · filed 2010-02-23(f)

The standing conferred upon Chapter 7 debtors is limited to avoidance of non-consensual liens which impair the debtor’s applicable exemption, and does not apply to mortgage liens.

Section 522(f) lets a Chapter 7 debtor avoid only a nonconsensual lien that impairs an applicable exemption; it does not authorize avoidance of a consensual mortgage lien.

In Re Caliguri · filed 2010-03-17(f)

Section 522(f) confers standing upon chapter 7 debtors that is limited to avoidance of nonconsensual liens which impair the debtor’s applicable exemption, and, as such, do not apply to consensual mortgage liens.

Section 522(f)(1) does not allow a debtor to avoid a consensual real-estate mortgage because it is neither a judicial lien nor a nonpossessory, nonpurchase-money security interest in personal property.

In re Landry · filed 2011-12-14(f)(1)

A real estate mortgage is a consensual and not a judicial lien. Nor does it constitute a security interest in personal property. Clearly, § 522(f) is inapplicable.

Section 522(f) permits a debtor to avoid a creditor’s valid judgment lien, including a longstanding lien, to the extent the lien impairs an exemption.

In re McVicker · filed 2016-02-17(f)

The Bankruptcy Code also provides for the avoidance of a creditor’s valid judgment lien—even one of long standing—if that judgment lien impairs a debtor’s exemption.

Section 522(f) does not permit avoidance of a judgment lien that does not impair the debtor’s exemption.

David Bradford Thacker · filed 2021-11-03(f)

Third, the debtor’s schedules indicate that the fee interest to which the judgment underlying the Portfolio claim could attach is worth $15,000 while his exemption is only $5000. Even assuming that the adjacent land could qualify as his homestead due to its proximity to his residence, the judgment lien does not appear to impair that exemption. The claim thus would not be avoidable under 11 U.S.C. § 522(f) such that its treatment should be provided under Section 3.4 of the plan.

Section 522(f) permits avoidance of judicial liens that impair an exemption, but it does not apply to consensual liens such as trust deeds.

Terry v. MEB Loan Trust II · filed 2023-09-15(f)

Clearly, the Rule 4003(d) exception does not apply in this case because § 522(f) only deals with judgment liens and not with consensual liens such as a trust deed.

Section 522(f) permits a debtor to avoid a judicial lien to the extent it impairs an exemption, subject to the statutory elements and proof burden.

Nelson Enrique Rojas · filed 2024-04-03(f)

Section 522(f) of the Bankruptcy Code allows a debtor to “avoid the fixing of a judicial 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.”

Section 522(f) lets a debtor avoid a judicial lien to the extent the lien impairs an exemption.

In Re Bozzelli · filed 1998-12-14(f)

The Motion is filed under § 522(f) which permits debtors to avoid judicial liens impairing exemptions.

Section 522(f) lets a debtor avoid a lien that impairs an exemption, including a security interest already attached to the debtor’s property.

Giles v. Credithrift of America, Inc. (In Re Giles) · filed 1981-02-12(f)(2)

Thus § 522(f) relates avoidance back to the original attaching of the security interest.

Section 522(f) lets a debtor avoid a lien on property to the extent the lien impairs an exemption to which the debtor would have been entitled under subsection (b).

Thorp Credit & Thrift Co. v. Pommerer (In Re Pommerer) · filed 1981-05-07(f)

This Court concludes that Sec. 522(f) does not destroy that balance, and that it is constitutional.

Section 522(f)(2) allows a debtor to avoid certain nonpossessory, nonpurchase-money security interests that impair an exemption, but it does not apply to liens created before October 1, 1979.

Blake v. First Crown Financial Corp. · filed 1983-01-10(f)(2)

A recent decision of the United States Supreme Court, however, has resolved the issue adversely to Blake. United States v. Security Industrial Bank, - U.S. -, 103 S.Ct. 407, 74 L.Ed.2d 235 (1982) held that § 522(f)(2) of the Bankruptcy Act does not apply to liens created before the effective date of the Bankruptcy Act, Oct. 1, 1979. Since First Crown’s lien attached on June 9, 1978, § 522(f)(2) is not available to Blake for the avoidance of First Crown’s lien. The trial court did not err in holding the lien on Blake’s household goods survived the discharge in bankruptcy.

Section 522(f)(2) allows a debtor to avoid a lien impairing an exemption in specified household property unless the creditor possesses the property or holds a valid purchase money security interest.

Crispin v. Norwest Financial (In Re Crispin) · filed 1992-03-20(f)(2)

The Debtors filed a motion to avoid lien in accordance with section 522(f)(2) of the Bankruptcy Code. Section 522(f)(2) provides that a debtor may avoid a lien if it affects an exemption in specific types of property that are used by the family for everyday activities. 11 U.S.C. 522(f)(2). The statute specifies, however, that the lien may not be avoided if the creditor possesses the property or if the creditor has a valid purchase money security interest in the property.

Section 522(f) allows a debtor to avoid a judicial lien that impairs an exemption when the lien attached after the debtor acquired the property interest.

Mead v. Mead · filed 1992-09-09(f)

Therefore, we hold that Brent has a lien in the amount of $25,000 on the property that is not avoidable under § 522(f). Beyond that amount, the lien is avoidable.

A debtor may avoid a wage-deduction lien under § 522(f)(1) when the debtor acquired an interest in the wages before the lien became fixed.

General Motors Acceptance Corp. v. Bates (In Re Bates) · filed 1993-11-30§ 522(f)(1)

This court rejects appellant’s argument and agrees with the bankruptcy court’s finding that the debtor had a property interest in the wages that were subject to GMAC’s lien prior to the “fixing” of the lien, allowing the debtor to avoid the Ken under § 522(f)(1).

Property exempt under state law remains subject to a federal tax lien under § 522(c)(2)(B).

In Re Carlson · filed 1995-01-09§ 522(c)(2)(B)

However, property exempted from the bankruptcy estate, even under state law, is still subject to federal tax liens.

Section 522(f) limits avoidance of a judgment lien to the amount of the debtor’s homestead exemption; the lien remains valid beyond that amount.

In Re Wrenn · filed 1994-12-22§ 522(f)(1)

Because no provision of the Bankruptcy Code avoids ACIPCO’s valid judgment lien on the Homestead, we REVERSE the district court’s order and REINSTATE the bankruptcy court order avoiding the lien only to the extent of Wrenn’s $5,000 homestead exemption under Alabama law.

Section 522(c)(2)(B) means that exempt property remains subject to a federal tax lien and its value therefore cannot be excluded when determining the secured amount of the tax claim.

Matter of Reed · filed 1993-12-02(c)(2)(B)

However, the value of any exemptions claimed by the debtor may not be excluded in determining the value of the secured tax claim, because a federal tax hen cannot be avoided with respect to exempt property. 11 U.S.C. § 522(c)(2)(B).

Property exempted under § 522 remains liable for a properly filed tax lien, and the lienholder need not object to the claimed exemption.

In re Babich · filed 1993-12-29§ 522(c)(2)(B)

The IRS’ failure to object to the claimed exemptions is of no consequence since even exempt property remains subject to a tax lien until the amount due is satisfied or becomes unenforceable due to lapse of time. ... The Bankruptcy Code does not require an objection under these circumstances.

Section 522(c)(2)(B) preserves a perfected federal tax lien against exempt property after discharge.

Demarah v. United States · filed 1993-12-06§ 522(c)(2)(B)

Although a debt is discharged pursuant to 11 U.S.C. § 524(a)(2), a perfected lien continues to exist under § 522(c)(2)(B). ... The tax lien is enforceable post-discharge against exempted property of the debtor.

A properly filed tax lien remains effective against otherwise exempt property and may not be avoided in bankruptcy.

In Re Harriet Bourque, Debtor. Harriet Bourque v. United States of America Internal Revenue Service · filed 1997-08-27(c)(2)(B)

Under § 522(c)(2)(B) of the Bankruptcy Code, life insurance proceeds are exempt and liens against them are generally avoidable. ‘‘[A] tax lien, notice of which is properly filed,” is effective against exempt property, however, and may not be avoided. 11 U.S.C. § 522(c)(2)(B).

Section 522(h) allows a debtor to avoid a qualifying tax lien on exempt property when the trustee could have avoided the transfer and does not do so, subject to § 522(c)(1).

Acuna v. Illinois Department of Revenue · filed 2022-07-29(h)

This Court agrees with the IRS that the Debtor is entitled to summary judgment avoiding the 2016 and 2017 federal tax liens on his exempt property under 11 U.S.C. § 522(h), subject to section 522(c)(1). The Debtor is not entitled to a declaration on summary judgment that the IRS’s liens are forever ineffective against the Debtor’s exempt property or that the Debtor may use section 522(h) to void the IRS’s liens for all purposes. Debtor has failed to establish that there is no genuine issue of material fact as to whether the IRS may avail themselves of section 522(c)(1).

Section 522 does not protect homestead proceeds from federal tax liens, even when the proceeds are protected from judgment liens.

Bernstein v. Pavich (In Re Pavich) · filed 1996-01-02(c)

Therefore, even though the Debtor is able to protect his homestead proceeds from judgment lien creditors, he loses it as against federal tax liens.

Under § 522(l), a debtor’s exemption claim is allowed when the trustee fails to timely object and the claim had a colorable or good-faith statutory basis, even if the property is later held not exempt.

In Re Riso · filed 1994-01-14(l)

Accordingly, notwithstanding this Court’s 1991 ruling that IRAs are not exempt, the debtor’s claim of exemption of his IRA funds herein is allowed by virtue of the trustee’s failure to timely object and by virtue of the fact that debtor had a colorable claim of exemption of his IRA fund in 1984.

Section 522(h) permits a debtor to avoid an involuntary transfer that impairs an exemption when the debtor could exempt the property under § 522(g)(1), the transfer is avoidable under a listed Code provision, and the trustee has not attempted avoidance.

Souers v. Nevada Ready Mix (In Re Souers) · filed 1994-01-31§ 522(h), incorporating § 522(g)(1)

Therefore, pursuant to § 522(h), the Plaintiffs have standing to bring an action to avoid the transfer provided that this transfer would have been avoidable by the trustee “under § 544, 545, 547, 548, 549, or 724(a) of this title or recoverable by the trustee under § 553 of this title.”

Section 522(h) lets a Chapter 13 debtor avoid certain involuntary transfers of exempt property, giving the debtor standing even though Chapter 13 debtors generally cannot use statutory avoidance powers.

In Re Elam · filed 1996-02-15(h)

However, there is a narrow exception to the general rule. Section 522(h) of the Code specifically grants a debtor standing to avoid certain involuntary transfers of exempt property.

Section 522(h) permits a debtor to avoid a qualifying transfer only when the trustee could avoid it and does not attempt to do so; the debtor’s right ends once the trustee has recovered the property.

In Re Taylor · filed 1981-01-29(h)(2)

It is clear that the debtor’s rights to recover property under this particular section of the Code is predicated on some form of abandonment by the trustee. Where the trustee actually effects a recovery under this section for the benefit of the estate, it is too late for the debtor to act at that point.

Section 522(h) does not apply when the chapter 13 trustee authorizes the debtor to pursue the avoidance action on behalf of the bankruptcy estate.

Rodriguez v. Countrywide Home Loans, Inc. (In Re Rodriguez) · filed 2009-04-01(h)(2)

Countrywide’s contention that the action is in contravention of 11 U.S.C. § 522(h) is therefore without merit, in that 11 U.S.C. § 522(h) is not at all relevant in this action.

Section 522(h) lets a debtor recover a setoff that the trustee could recover under § 553 when the trustee does not pursue it.

Berg v. SSA · filed 2018-08-17(h)

Section 522(h) of the Bankruptcy Code allows the debtor to recover a setoff that is recoverable by the trustee under section 553 if the trustee does not herself attempt to recover it.