11 U.S.C. § 522

Section 522(b)(1) lets a state establish its own exemption provisions and deny debtors the federal § 522(d) exemptions, but it does not authorize the state to interfere with § 522(f) lien avoidance.

American Bank & Trust v. Miller (In Re Miller) · filed 1983-06-06§ 522(b)(1)

Section 522(b)(1) allows a state to enact its own exemption provisions, and to specifically deny debtors the right to claim the federal exemptions listed in § 522(d). ... Section 522(b)(1) does not grant to the states authority to alter the operation of § 522(f).

Section 522(b) permits an individual debtor to claim exemptions and recover estate property only if the debtor had an interest in that property when the petition was filed.

In Re Certain · filed 1983-06-08§ 522(b), § 522(h)

in order to do so, the debtor must first have an interest in that property at the time the petition is filed.

Section 522(b) and (7), together with § 521(1), supersede the former Rule 403(b)-(c) fifteen-day periods governing reports and objections to exemption claims.

Matter of Elliott · filed 1983-06-08§ 522(b), § 522(7)

It is the further determination of the Court that the fifteen day periods in B.R.P. 403(b) and (c) for reporting and objecting thereto are superseded by 11 U.S.C. § 521(1) and 522(b) and (7).

Section 522(f)(1) allows avoidance of a judicial lien to the extent that it impairs an exemption available under § 522(b)(1).

Lincoln v. Cherry Creek Homeowners Ass'n (In Re Lincoln) · filed 1983-06-15§ 522(f)(1)

Consequently, pursuant to 11 U.S.C. § 522(f)(1), § 522(b)(1), C.R.S. 1973, § 13-54-107, § 38-41-201, and § 38-41-202, these liens are null and void as judicial liens.

Section 522(d)(1) allows a debtor to claim as exempt only a residence in which the debtor resides.

In re Tevaga · filed 1983-06-22§ 522(d)(1)

The Bankruptcy Code provides that a Debtor may claim as exempt only a residence wherein he resides. 11 U.S.C. § 522(d)(1).

Section 522(f)(1) allows a debtor to avoid a lien only when it is a judicial lien that impairs an exemption to which the debtor would otherwise be entitled.

Boyd v. Robinson (In Re Boyd) · filed 1983-06-23§ 522(f)(1)

In order for an interest to be avoidable under section 522(f)(1), it must impair an exemption to which the debtor would have been entitled.

Section 522(b)(2)(A) preserves federal nonbankruptcy exemptions for Colorado debtors despite the state’s opt-out, while § 522(f) does not allow avoidance of a statutory lien.

Ranes v. Molen (In Re Ranes) · filed 1983-06-24§ 522(b)(1), § 522(b)(2)(A), § 522(f)

Those exemptions are specifically reserved to all debtors in 11 U.S.C. § 522(b)(2)(A). Thus, the federal nonbankruptcy exemptions are available to Colorado debtors regardless of whether or not this State exercised its option under 11 U.S.C. § 522(b)(1). ... Therefore, it is this Court’s opinion that under 11 U.S.C. § 101, an attorney’s lien in Colorado in a “statutory” and not a “judicial” lien, which cannot be avoided by a debtor under 11 U.S.C. § 522(f).

Section 522(f)(1) permits avoidance of judgment liens perfected between enactment and effectiveness of the Bankruptcy Code, and applying it to those liens is constitutional.

Hunter v. Schultheis Bros. Co. (In Re Hunter) · filed 1983-06-27§ 522(f)(1)

This Court holds then that Congress intended Code § 522(f)(1) to permit the avoidance of judgment liens perfected between the enactment and effective dates of the Code, and so doing Congress acted constitutionally.

Section 522(f)(1) avoids a judicial lien only when the lien impairs the exemption amount the debtor is legally entitled to claim.

In re Wilson · filed 1983-06-30§ 522(f)(1)

Since Otto’s lien is for $750, if the correct amount of the California exemption is $45,-000, the exemption is impaired and § 522(f)(1) would operate to nullify the lien; if the proper amount is $40,000, Otto’s lien does not impair the Wilsons’ homestead exemptions and would remain valid.

Section 522(b)(1) lets a state exclude only the federal exemptions in § 522(d), not all of section 522, while § 522(b)(2)(A) preserves exemptions under other federal or state law.

Eanes v. Shepherd · filed 1983-05-23§ 522(b)(1), § 522(b)(2)(A)

does not give the states the power to “opt out” of § 522 in its entirety, but the power is clearly limited by its language to excluding only the federal exemption specified in § 522(d).

Section 522(b)(2)(A) permits a debtor in an opt-out state to claim property exempt under federal nonbankruptcy law or applicable state or local law.

Eanes v. Shepherd · filed 1983-05-23§ 522(b)(2)(A)

Property is exempt under 11 U.S.C. § 522(b) if exempt under federal non-bankruptcy law or statutory or judicial Virginia law.

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

In Re Knowles · filed 1991-01-03§ 522(b)(2)(A)

ERISA does not qualify as a separate federal exemption for purposes of 11 U.S.C. § 522(b)(2)(A).

Section 522(c)(1) permits nondischargeable tax liabilities to be satisfied from exempt property.

In Re Reed · filed 1991-01-03§ 522(c)(1)

Among these are nondischargeable tax liabilities and unpaid alimony and child support. 11 U.S.C. § 522(c)(1).

Section 522(f) requires the debtor to properly set apart property as exempt before avoiding a judicial lien.

In Re Wall · filed 1991-01-11§ 522(f)

in order to avoid a judicial lien under § 522(f) a debtor must properly set apart the subject property as exempt.

Section 522(b) gives a debtor standing to litigate claims arising from property determined exempt.

Amstone v. Peninsular Fire Insurance · filed 1991-01-11§ 522(b)

the debtor has standing to litigate causes of action with regard to that property.

Section 522(f) permits avoidance of judicial liens against the debtor’s homestead interest.

In Re Swift · filed 1991-01-15§ 522(f)

interest in the homestead, which extends to that portion encumbered by Mary Swift’s lien interest as well.

Section 522(b)(2) permits a debtor to claim an Arkansas homestead exemption under applicable state law.

In Re Weaver · filed 1991-01-17§ 522(b)(2)

the objections of Wiseman and the trustee to the debtor’s claim of homestead exemption are overruled.

Section 522(b)(2)(B) requires the extent of an exemption to be determined under the law of the state where the property is located when no federal property law applies.

Landmark Bank v. Charles (In Re Charles) · filed 1991-01-22§ 522(b)(2)(B)

determine the extent of any exemption under § 522(b)(2)(B) with reference to the law of the state where the property is located.

Section 522(d) limits an exemption to the lesser of the property’s equity or the statutory ceiling.

First of America Bank v. Gaylor (In Re Gaylor) · filed 1991-01-25§ 522(d)(5)

whichever is less.

Section 522(f) makes a judicial lien arising from marital-property litigation avoidable when it impairs an exemption.

Montiel v. Shestko-Montiel (In Re Shestko-Montiel) · filed 1991-01-31§ 522(f)

The lien arose from litigation and it is a judicial lien clearly within the language of section 522(f).

Section 522(f) permits avoidance only to the extent a lien impairs an exemption under § 522(b).

Havas Leasing Co. v. Breen (In Re Breen) · filed 1991-02-11§ 522(b), § 522(f)

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

Section 522(b) limits debtors to exemptions under state law or federal nonbankruptcy law.

In re Gee · filed 1991-02-12§ 522(b)

debtors may claim exemptions only under State law or Federal nonbankruptcy law.

Section 522(b)(1) permits a debtor to choose federal or state exemptions unless the state has opted out.

In Re Elizabeth Hayes Lucas · filed 1991-02-13§ 522(b)(1)

a debtor may choose between either a “federal” or “state” exemption system unless the individual state has exercised its authority to “opt out” of the federal exemption scheme.

Section 522(b) permits an opt-out state to require debtors to use state exemptions.

In Re Emerson · filed 1991-02-22§ 522(b)

Virginia debtors who have filed for protection under the Bankruptcy Code can only use Virginia exemptions.

Section 522(b)(2)(A) governs a motion to amend exemption schedules.

In Re Peacock · filed 1991-03-01§ 522(b)(2)(A)

the bankruptcy judge was correct in treating the motion to amend the schedules like any other motion under § 522(b)(2)(A).

Section 522(f)(2)(B) permits avoidance of a nonpossessory, nonpurchase-money security interest in tools of the trade when it impairs an exemption.

Snap-On Tools Corp. v. Freeman (In Re Freeman) · filed 1991-03-04§ 522(f)(2)(B)

nonpossessory, nonpurchase-money security interest which can be avoided by Mr. Freeman under 11 U.S.C. § 522(f)(2)(B).

Section 522(g) limits a debtor’s use of avoiding powers to the statute’s narrow circumstances when the powers are used for the debtor’s own benefit.

In Re Jernigan · filed 1991-10-11§ 522(g)

within the narrow limits prescribed by that statute.

Section 522(f)(2)(B) permits a debtor to avoid a nonpossessory, nonpurchase-money security interest in tools of the trade when the lien impairs an exemption the debtor would have been entitled to claim but for the lien.

Shearer v. Crestar Bank (In Re Shearer) · filed 1991-10-11§ 522(f)(2)(B)

Accordingly, this court concludes that both subsections (f)(1) and (f)(2) of section 522 permit the debtor to avoid liens on property that would have been exempt if not encumbered by the lien.

Section 522(b)(2)(A) does not allow a debtor who elects the state exemption scheme to exempt private-employer ERISA pension benefits as property exempt under other federal law.

Heitkamp v. Dyke / FDIC v. Felts · filed 1991-10-15§ 522(b)(2)(A)

We agree with our colleagues on the Eleventh Circuit that the ERISA antialienation provision is not "other federal law" which would support exemption under section 522(b)(2)(A).

Section 522(c)(2)(B) permits a properly filed federal tax lien to be collected from otherwise exempt property.

Davenport v. United States · filed 1991-10-18§ 522(c)(2)(B)

Section 522(c)(2)(B) of the Bankruptcy Code provides that a properly filed tax lien may be collected from exempt property.

Section 522(f)(1) allows avoidance of judicial liens that impair exemptions but does not apply to mortgage liens.

Klemme v. Schoneman · filed 1991-10-23§ 522(f)(1)

Section 522(f)(1) of the Bankruptcy Code speaks only to the avoidance of ... liens.

Section 522(f)(1) permits a debtor to invalidate a lien only to the extent that the lien impairs an exemption.

Carman v. European American Bank & Trust Co. · filed 1991-10-24§ 522(f)(1)

Indeed, complete dissolution of the lien is not assured even when the debtor does invoke section 522 (f) (1), since that statute authorizes the lien’s invalidation only "to the extent" that it impairs the exemption.

Section 522(b)(2)(A) does not preserve a state-law exemption for ERISA-qualified plans when ERISA preempts that state exemption.

Pitrat v. Garlikov · filed 1991-10-25§ 522(b)(2)(A)

The bankruptcy code does not save A.R.S. § 33-1126(B) from pre-emption by ERISA.

Section 522(b)(2)(A) does not make ERISA and Internal Revenue Code anti-alienation provisions federal bankruptcy exemptions.

Pitrat v. Garlikov · filed 1991-10-25§ 522(b)(2)(A)

“that the anti-alienation provisions of ERISA and the Internal Revenue Code do not create Federal non-bankruptcy exemptions for ERISA qualified plans under 11 U.S.C. § 522(b)(2)(A).” ... “We have reviewed these cases and are convinced that we are still bound to follow Daniel.”

Section 522(c)(2)(B) preserves properly filed tax liens against exempt property despite the debtor’s bankruptcy discharge.

Millsaps v. United States (In Re Millsaps) · filed 1991-11-04§ 522(c)(2)(B)

The Service is therefore entitled to summary judgment against the Millsaps on this issue.

Section 522(f)(2)(B) permits a debtor to avoid a non-purchase-money lien on exempt property to the extent authorized by the statute.

In Re Hassebroek · filed 1991-11-05§ 522(f)(2)(B)

Bank does have non-purchase money security interests in these vehicles, but these liens may be avoided by the debtors to the aggregate amount of $3,745.

Section 522(b)(1) permits debtors to assert applicable state-law exemptions.

Matter of Foulk · filed 1991-11-08§ 522(b)(1)

Under 11 U.S.C. § 522(b)(1), debtors in this case are entitled to assert the Nebraska exemptions.

Section 522(b)(1) allows debtors to assert exemptions authorized under applicable state law.

Matter of Coonrod · filed 1991-11-08§ 522(b)(1)

Under 11 U.S.C. § 522(b)(1), debtors in this case are entitled to assert the Nebraska exemptions.

Section 522(b)(2)(A) exempts property that is exempt under applicable state, local, or nonbankruptcy federal law.

In Re Enfield · filed 1991-11-13§ 522(b)(2)(A)

Even though all of debtors’ pension system accounts became part of the bankruptcy estate upon the filing of debtors’ petition under Section 541, all of the assets of those retirement accounts are exempt property under Section 522(b)(2)(A).

Section 522(d) does not support an exemption claim unless the claim is authorized by the statute.

In Re Duggan · filed 1991-11-15§ 522(d)

By order of June 24, 1991, I sustained the Trustee’s objection to the Debtor’s claim to exemptions on the ground that the Debtor’s exemption claim under 11 U.S.C. § 522(d) (1988) was not supported by that statute.

Section 522(h) allows a debtor to avoid certain transfers by proceeding in the trustee’s shoes when the trustee does not pursue the avoidance.

Phelan v. Fleet Consumer Discount Co. (In Re Rice) · filed 1991-11-21§ 522(h)

Firstly, we reiterate that the Debtor can succeed only because she is proceeding in the shoes of the trustee under 11 U.S.C. §§ 522(h), 522(g)(1) and 544(a).

Section 522(c)(2)(B) makes property exempted under section 522 remain subject to a properly filed federal tax lien.

In Re Perkins · filed 1991-11-27§ 522(c)(2)(B)

such exemption does not affect a federal tax lien.

Section 522(b) allows a debtor in a state that has opted out of the federal exemptions to claim property exemptions provided by applicable state or local law.

In Re Kulp · filed 1991-11-27§ 522(b)

In States that have "opted out," debtors are permitted to exempt only "property that is exempt under ... state or local law...." § 522(b)(2)(A).

Section 522(b) permits states to opt out of the federal exemptions and thereby allows debtors in those states to claim exemptions provided by applicable state or local law.

Kulp v. Zeman (In re Kulp) · filed 1991-11-27§ 522(b)

Section 522 provides a list of exemptions; but grants States the authority to “opt out” of the federal list. In States that have “opted out,” debtors are permitted to exempt only “property that is exempt under ... state or local law_” § 522(b)(2)(A).

Section 522(c)(1) does not remove § 522(c)’s protection for exempt property from a tax debt unless the tax debt is nondischargeable.

In Re Miel · filed 1991-12-05§ 522(c)(1)

The only exceptions, relevant here, to the protection of § 522(c) are if the debt is a non-dischargeable tax debt under § 523(a)(1), or if the debt is secured by a tax lien.

Section 522(b)(2)(A) does not treat ERISA’s anti-alienation provision as “other federal law” creating a nonbankruptcy exemption.

Matter of Arcement · filed 1991-12-20§ 522(b)(2)(A)

Thus, this Court holds that ERISA § 1056(d) is not considered “other federal law" as that term is used in 11 U.S.C. § 522(b). Therefore, ERISA § 1056(d) does not constitute an exemption.

Section 522(b)(2)(A) treats ERISA anti-alienation and anti-assignment requirements as a federal exemption for qualified pension assets.

In Re Damast · filed 1991-12-27§ 522(b)(2)(A)

The Court concludes that even if the ERISA qualified pension plan assets in question were property of the estate, the anti-alienation and anti-assignment requirements of 26 U.S.C. § 401(a)(13) and 29 U.S.C. § 1056(d)(1) create a federal exemption under section 522(b)(2)(A).

Section 522(f) permits avoidance of nonpurchase-money, nonpossessory security interests in household goods when they impair an exemption, including a state-law exemption.

In Re Sullins · filed 1991-12-31§§ 522(f)(1), 522(f)(2)

allows debtors to utilize the provision of 11 U.S.C. § 522(f) to avoid General Credit Company’s nonpur-chase-money, nonpossessory security interest in household goods.

Section 522(d)(10)(E) permits exemption of pension-plan payments only to the extent reasonably necessary for the debtor’s or dependents’ support.

Velis v. Kardanis · filed 1991-12-26§ 522(d)(10)(E)

Apart from all other considerations, that section permits exemption only “to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.”

Section 522(b)(2)(A) generally fixes exemption rights at the bankruptcy petition date, so later state-law changes do not apply absent retroactivity.

In Re Gardner · filed 1991-12-31§ 522(b)(2)(A)

A debtor’s right to exemptions is generally determined as of the date the bankruptcy petition is filed “notwithstanding any post-petition modification or amendment to the state exemption law.”

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

In Re Mastowski · filed 1992-01-02§ 522(f)

Since debtor has equity of $971.00 then she may avoid judicial liens under § 522(f) to the extent it impairs her equity, and since the $971 would be eaten up in any sale of the property, the liens of James Randall are discharged and it is so ordered.

Section 522(b) permits debtors to claim applicable federal, state, or local exemptions, subject to a state’s opt-out; in Missouri, the court applied § 522(b)(2)(A) to the debtor’s FERS interest.

In Re Sawyers · filed 1992-01-07§ 522(b)(2)(A)

Section 522(b) allows debtors in bankruptcy to elect either to exempt from property of the bankruptcy estate property which is listed in § 522(d) of the Bankruptcy Code or to exempt property which is exempt under federal non-bankruptcy law, state law or local law, unless the debtor’s state of residence “opts out” of the federal exemption scheme.

Section 522(f)(1) does not allow avoidance of a judicial lien created in the same divorce decree that first gives the debtor the property interest to which the lien attaches.

In Re Harry · filed 1992-01-09§ 522(f)(1)

The debtor’s new fee simple interest did not exist prior to the entry of the judgment and therefore the Debtor’s Motion To Avoid Liens must be denied.

Section 522(f)(2) does not permit avoidance of a lien that attached to property before the debtor acquired an interest in it.

In Re Smith · filed 1992-01-09§ 522(f)(2)

In this case, Historic Riverside’s lien attached to the stereo console while owned by Smith Music Network. It remained attached to the property when the console was acquired by Gary Smith, and, consequently, the Debtor cannot avoid the fixing of the lien under 11 U.S.C. § 522(f).

Section 522(f)(1) permits avoidance when the debtor possessed the property interest before the lien attached and the lien impairs an exemption.

Wright v. Wright (In Re Wright) · filed 1992-01-13§ 522(f)(1)

I find that the evidence presented to the Court clearly establishes that Debtor possessed his interest in the real estate prior to the time at which Respondent’s lien was fixed.

Section 522(b)(2)(A) treats ERISA’s anti-alienation provision as “other federal law” supporting exemption of qualified pension assets.

In Re Shaker · filed 1992-01-15§ 522(b)(2)(A)

ERISA’s anti-alienation provision constitutes “other federal law” pursuant to 11 U.S.C. § 522(b)(2)(A). The debtors’ pension plan account is therefore exempted from the claim of the bankruptcy trustee pursuant to § 522(b)(2)(A) in conjunction with 29 U.S.C. § 1056(d).

Section 522(f)(2)(B) prevents a state from defeating lien avoidance by defining its exemptions to include only unencumbered property.

In Re Wink · filed 1992-01-15§ 522(f)(2)(B)

The Court holds that a state may not, in effect, “opt out” of the right to lien avoidance pursuant to 11 U.S.C. § 522(f) by defining its state-law exemptions to include only unencumbered property.

Section 522(d)(5) exempts only the statutory amount of a lawsuit interest, measured at filing, and does not remove the lawsuit or later settlement proceeds above that amount from the estate.

Bronner v. Gill (In Re Bronner) · filed 1992-01-22§ 522(d)(5)

The Debtors, however, were entitled to exempt property valued up to $15,800 pursuant to Section 522(d). The Debtors’ claimed exemption in the lawsuit became exempt once the period for objections had passed. However, the exemption did not remove the lawsuit from the estate.

Section 522(h) permits a debtor to avoid a preferential transfer only when the debtor could claim the property as exempt under § 522(g)(1), including when the transfer was not voluntary and the trustee does not act.

In Re Corwin · filed 1992-01-27§ 522(h)

Having failed to establish pursuant to § 522(g)(1) that the granting of the security interest was not voluntary, the Debtors lack standing under § 522(h) to set aside the lien as a preferential transfer.

Section 522(h) permits avoidance of a preferential transfer only to the extent the debtor could claim the property as exempt after avoidance, and the debtor must prove that entitlement.

In re Walters · filed 1992-01-27§ 522(h)

Section 522(h) provides that a preferential transfer is avoidable by a debtor only “to the extent that the debtor could have exempted such property ... if the trustee had avoided such transfer.”

Section 522(f)(2)(A) permits avoidance of a nonpossessory, nonpurchase-money security interest in household goods despite a state-law limitation excluding lien-encumbered property from exemptions.

In Re Puhl · filed 1992-01-31§ 522(f)(2)(A)

Thus, if Debtor would have been entitled to an exemption but for City Loan's nonpossessory, nonpurchase money security interest, Debtor may avoid that lien to the extent it impairs an exemption to which he would have been entitled.

Section 522(b) permits a debtor to remove estate property from creditor claims by claiming an exemption, but the debtor must disclose the property and assert the exemption.

Mertz v. Rott · filed 1992-01-31§ 522(b)

Mertz was required to disclose the refund as part of his estate, and assert any exemption he might have.

Section 522(b)(2)(A) permits an exemption under other federal law, including ERISA’s anti-assignment provision for retirement benefits.

In Re Hennessey · filed 1992-02-03§ 522(b)(2)(A)

the anti-assignment provision of ERISA is such a law, so that § 522 is effective to permit the claimed exemption even with pre-emption of the Massachusetts statute.

Section 522(d)(10)(D) does not exempt a lump-sum alimony award that is actually an equitable-distribution property settlement.

In Re Benjamin · filed 1992-02-07§ 522(d)(10)(D)

is not within the parameters of the exemption contained in 11 U.S.C. Section 522(d)(10)(D).

Section 522(f) does not permit avoidance when the lien attached before the debtor acquired her property interest.

In Re Donovan · filed 1992-02-28§ 522(f)

Since the creditor’s lien fixed to the property before the debtor acquired her interest, the lien did not “fix” on the debtor’s interest in the property. Therefore, the Court concludes that the debtor may not avoid the creditor’s lien under § 522(f).

Section 522(f)(1) permits avoidance of a judgment lien impairing a homestead exemption in jointly owned entireties property when joint creditors may execute on it.

In re Maino · filed 1992-02-18§ 522(f)(1)

This judgment lien does impair the homestead exemption of these joint debtors.

Section 522(f)(1) does not permit avoidance of a judicial lien when state law makes the homestead exemption unavailable absent a pending involuntary disposition.

In Re Bursee · filed 1992-02-27§ 522(f)(1)

As there is no pending judicial sale, the homestead exemption may not be asserted, there is no exemption for the judicial lien to impair and consequently, no reason to apply the avoidance provision.

Section 522(f)(1) is unavailable when state exemption law already leaves the debtor’s homestead free of the judicial lien.

In Re Cerniglia · filed 1992-03-06§ 522(f)(1)

The Court finds that Home Federal’s judicial lien does not impair an exemption to which the debtors would have been entitled because, under state law, no lien attached to the debtors’ exempt homestead interest.

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

In re Harris · filed 1992-03-10§ 522(f)(1)

The lien of ECFC is avoidable to the extent of $2,500.00.

Section 522(f)(1) does not permit avoidance when the lien does not impair an exemption to which the debtor would have been entitled absent the lien.

In Re Reinders · filed 1992-03-12§ 522(f)(1)

Reinders, may not avoid John and Carol Reinders’ judicial lien in her homestead because the lien does not impair an exemption to which she would be entitled in the absence of the lien.

Section 522(f)(1) permits avoidance of a judicial lien that impairs an otherwise valid state-law exemption.

Applebee v. Brawn (In Re Brawn) · filed 1992-03-16§ 522(f)(1)

Plaintiffs’ judicial lien on Hayward’s exempt residential real estate is avoided.

Section 522(d)(10) causes public-assistance benefits to be included in the bankruptcy estate so they can then be exempted under the statute.

Howell v. Commonwealth, Department of Public Welfare (In Re Howell) · filed 1992-03-17§ 522(d)(10)

Since the Bankruptcy Code specifically allows the debtor to exempt local public assistance benefits from his or her estate, the Court must conclude that welfare benefits are included in the debtor’s Chapter 13 estate.

Section 522(f)(2)(A) permits avoidance of a nonpossessory, nonpurchase-money lien on tools of the trade when the lien impairs an exemption; inadequate payment allocation can destroy purchase-money status.

Snap-On Tools, Inc. v. Freeman (In re Freeman) · filed 1992-03-23§ 522(f)(2)(A)

Because the method for allocating the payments made by Freeman is inadequate to determine which tools have been paid for and which secure their own purchase price, Snap-On’s security interest does not survive the consolidation of debts.

Section 522(b) permits states to establish bankruptcy exemptions more favorable than the federal list, subject to the statute’s delegated authority.

In Re Walker · filed 1992-03-26§ 522(b)

The Oklahoma exemption statute is not inconsistent with the alternate federal list in 11 U.S.C. § 522; it simply is more favorable to debtors.

Section 522(d)(10)(E) permits an IRA payment to qualify as a similar retirement-plan payment on account of age when reasonably necessary for support.

In Re Chiz · filed 1992-03-05§ 522(d)(10)(E)

I conclude that the Debtors’ right to receive payments from their IRA is a “similar plan or contract on account of ... age” within the meaning of § 522(d)(10)(E).

Section 522(d)(10)(E) may exempt a pension plan to the extent reasonably necessary for the debtor’s and dependents’ support.

In Re Levitt · filed 1992-03-10§ 522(d)(10)(E)

The pension plan appears to qualify as exempt property under 11 U.S.C. § 522(d)(10)(E) to the extent reasonably necessary for the support of the Debtor and any of his dependents.

Section 522(d) preserves exemption rights in postconfirmation funds held by a Chapter 12 trustee when the case converts to Chapter 7 before the funds are paid to creditors.

In Re Plata · filed 1992-03-10§ 522(d)

revested in Debtors at the time of the conversion.

Section 522(f) permits avoidance only to the extent a lien impairs an exemption, so the debtor must show an exemption and qualifying property interest.

In re Cassar · filed 1992-03-17§ 522(f)

First, § 522(f) allows debtors to avoid a lien “to the extent that such lien impairs an exemption to which the” debtors would be entitled under § 522(b).

Section 522(f)(2) permits avoidance of a qualifying nonpossessory, nonpurchase-money lien on household goods.

Michel v. Beneficial Consumer Discount Co. (In Re Michel) · filed 1992-03-18§ 522(f)(2)

This relief is plainly justified under 11 U.S.C. § 522(f)(2).

Section 522(f)(2) cannot avoid a lien on an exemption the debtor is estopped from claiming.

Conklin v. Iowa District Court for Scott County · filed 1992-03-18§ 522(f)(2)

Thus, Conklin’s argument that House’s lien can be avoided under Section 522(f)(2) as impairing an exemption to which he is entitled is inappropriate.

Section 522(f)(2) permits avoidance of voluntary nonpurchase-money security interests in property that would be exempt but for the lien, to the extent of impairment.

Barkley v. Tower Loan of Mississippi, Inc. (In Re Kennedy) · filed 1992-03-27§ 522(f)(2)

Therefore, pursuant to § 522(f)(2), the security interests can be avoided to the extent that the debtors’ exemptions are impaired.

Section 522(f) permits avoidance only of the portion of a qualifying lien that actually impairs an exemption.

In re Gomez · filed 1992-03-31§ 522(f)

The Debtors are not permitted to void the entire lien, but only that portion that actually impairs the exemption to which the Debtors would be entitled.

Section 522(f)(2)(A) determines whether a judicial lien impairs an exemption by comparing the combined liens and exemption amount with the property's value free of liens.

In Re Bowden · filed 2000-09-19(f)(1), (f)(2)(A)

A lien impairs an exemption to the extent that the sum of (i) the challenged lien, (ii) all other liens on the property, and (iii) the amount of the exemption the debtor could claim if there were no liens on the property, exceeds the value of the debtor’s interest in the property ignoring any liens.

Converting a Chapter 11 case to Chapter 7 does not restart the limitations period for objecting to exemptions claimed during the Chapter 11 proceeding.

In Re: Wayne E. Bell, Jr., Debtor. Wayne E. Bell, Jr. v. Bell · filed 2000-09-20(l)

we conclude that conversion does not reset the limitations period for filing objections to a debtor’s claimed exemptions.

Section 522(f) does not permit avoidance of a judicial lien unless the debtor has actually claimed an exemption in the property; an exemption valued at $0.00 is treated as no exemption.

In Re Berryhill · filed 2000-09-21(f)(1)(A)

Although the present Debtors have listed the real estate as exempt on Schedule C, they have valued their exemption for the property at $0.00. In the court’s opinion, a claimed exemption of $0.00 is the equivalent of no exemption whatsoever. ... Without a claimed exemption in property, there is nothing that § 522(f) can be used to protect.

Section 522(b)(2)(B) exempts a debtor’s interest in tenancy-by-the-entireties property only to the extent applicable nonbankruptcy law exempts it from process, so joint creditors may reach the property when state law permits.

In Re Cross · filed 2000-10-02(b)(2)(B)

Consequently, to the extent creditors cannot reach entireties property outside of bankruptcy, Congress continued that protection. Nonetheless, where creditors can reach entireties property, the bankruptcy trustee may do so as well.

Section 522(g) permits a debtor to exempt property that the trustee can recover through the Code's avoiding powers, subject to the statute's conditions.

Selby v. Allfirst Bank (In Re Selby) · filed 2000-10-03(g)

Section 522(g) permits the debtor to exempt property that the Trustee can recover under its avoiding powers of the Code.

Section 522(f)(2)(A) treats a lien as impairing an exemption when the total value of all liens, plus the exemption amount, exceeds the property's fair market value.

In Re Ochmanek · filed 2000-10-04(f)(2)(A)

For purposes of § 522(f), a lien is considered to impair a debtor’s exemption if the total value of all the liens on the property (including the lien to be avoided), plus the amount of the debtor’s exemption, exceeds the fair market value of the property. 11 U.S.C. § 522(f)(2)(A).

Section 522(b)(2)(B) exempts a debtor’s tenancy-by-the-entirety interest only to the extent that the interest is exempt from process under applicable nonbankruptcy law.

In Re Droumtsekas · filed 2000-10-04(b)(2)(B)

The Code provides that the Debtor’s interest in each of these lots is exempt to the extent that such interest is exempt from process under applicable .nonbank-ruptcy law. Since the holder of each tax certificate is entitled to enforce the tax lien pursuant to chapter 197 of the Florida Statutes, the Debtor’s interest in each of the lots is not exempt from process by the holder of the tax certificate relating to such lot, and therefore such interest is not exempt within the meaning of § 522(b)(2)(B) of the Bankruptcy Code.

Section 522(c) shields exempt property from liability for debts arising before the bankruptcy case, subject to statutory exceptions.

In Re Hunton · filed 2000-10-11(c)

Section 522(c),' on the other hand, is an exclusive provision which operates to shield exempt property from pre-petition liability.

Section 522(g)(1) permits a debtor to claim an exemption in property recovered by the trustee when the transfer was involuntary and the debtor did not conceal the property.

Talbot v. Federal Home Loan Mortgage Corp. (In Re Talbot) · filed 2000-10-12(g)(1), (h), (i)

the transfer was involuntary, and (2) the debtor did not conceal the property.

Section 522(g) permits a debtor to exempt property recovered by the trustee only when the statutory conditions are met, so it does not permit exemption of equity created by avoiding a voluntary lien the debtor could not have avoided.

In Re Witt · filed 2000-10-13(g)

The equity later created by the trustee’s hen avoidance did not exist on the effective date of the exemption. It could be claimed only under § 522(g) which is unavailing to the debtor.

Section 522(b)(1) permits a state to opt out of the federal bankruptcy exemptions and limit its residents to exemptions provided by state law.

Manchester v. Annis · filed 2000-10-19(b)(1)

That section also allows a state to opt out of the federal exemptions and limit its residents to those exemptions provided under state law.

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

United States v. Jones · filed 2000-10-23(c)(2)(B)

Furthermore, 11 U.S.C. § 522(c)(2)(B) specifically excepts from exemption amounts due to a tax hen.

Section 522(c)'s protection for exempt property does not preempt Iowa's antecedent-debt exception to its homestead exemption.

In Re Norkus · filed 2000-10-25(c)

WHEREFORE, the Court finds that 11 U.S.C. § 522(c) does not preempt Iowa Code section 561.21 and, therefore, the Trustee’s section 561.21(1) objection to the Debtors’ homestead exemption is sustained to the extent the antecedent debts are not satisfied after the other property of the Debtors subject to execution is exhausted.

Section 522(f)(1)(A) allows avoidance of a judicial lien only when the lien fixes on and impairs exempt property; a Florida homestead judgment lien that never fixes on the homestead cannot be avoided.

Cannon v. Cannon · filed 2000-10-31(f)(1)(A)

Given the sweeping language of Article 10, § 4 of the Florida Constitution, and the interpretation of that provision by Florida courts, Ms. Cannon’s $90,000 hen did not “fix” against Mr. Cannon’s exempt homestead property, and therefore cannot be avoided under § 522(f)(1)(A).

Section 522(b)(2)(A) permits a debtor in a state that has opted out of the federal exemptions to claim applicable exemptions provided by state law.

In re Allen · filed 2000-10-31(b)(2)(A)

A state may opt out of the federal exemptions available under § 522(d) and limit its residents to the exemptions provided under state law.

Section 522(h) permits a debtor to avoid a post-petition transfer under § 549 when the transfer is avoidable by the trustee and the trustee does not attempt to avoid it.

Franklin v. Kwik Cash of Martin (In Re Franklin) · filed 2000-11-01(h)(1) and (2)

Section 522(h) gives debtors the power to avoid post-petition transfers of property pursuant to § 549 if "such transfer is avoidable by the trustee” and "the trustee does not attempt to avoid such transfer.” 11 U.S.C. § 522(h)(1) and (2). Because the trustee has not attempted to avoid the transfer to Kwik Cash in the five months since the case was filed, the Court finds that the debtors may properly bring such an action.

Under § 522(b)(2)(A) and (m), a state may opt out of the Code exemptions, and when it does, the Code’s separate-debtor rule does not require that state’s exemptions to be available to joint debtors.

In Re Smith · filed 2000-11-01(b)(2)(A), (m)

The Code provides one exemption scheme in section 522(d), ... however, it also allows a state to opt out of this scheme and establish its own. ... Missouri chose to opt out, and debtors domiciled in Missouri may exempt from property of the estate any property that is exempt from attachment and execution under Missouri state law, or under any Federal law except the Code. ... There has been some confusion in this area, because, in the case of a joint filing, the Code provides that exemptions allowed by the Code apply to each debtor separately. ... However, when a state opts out of the exemption scheme provided by the Code, that state is not required to make those exemptions available to joint debtors. ... As such, the exemptions provided for in the Code have no force when the state opts out, as Missouri has done. ... I, therefore, find that debtors in Missouri are bound by the express language of the Missouri homestead statute, and that statute allows only one joint owner to claim the entire amount of the homestead exemption.

Section 522 permits a state that has opted out of the federal exemption scheme to require use of its own bankruptcy exemptions.

In Re Key · filed 2000-11-02

The State of Nebraska has opted out of the federal exemption scheme, electing instead to retain the personal exemptions provided in its statutes and constitution. Neb. Rev. Stat. Ann. § 25-15, 105 (Michie 1995). Under 11 U.S.C. § 522, Nebraska law of exemption is applicable in bankruptcy cases.

Section 522(f)(1)(A) permits a debtor to avoid a judicial lien impairing a state-law exemption elected under § 522(b)(2)(A), including when the lien secures debt arising after the effective date of the exemption law despite a pre-effective-date credit agreement.

Alessandro v. People's Bank (In re Alessandro) · filed 2000-11-02(f)(1)(A), (b)(2)(A)

Section 522(f)(1)(A) provides that “the debtor may avoid the fixing of a [judicial] lien on an interest ... in property to the extent that such lien impairs an exemption to which the debtor would have been entitled under subsection (b) of this section ... ”. ... The issue is not when the debtor-creditor relationship arose, but whether there was a lien on a claim or obligation which arose after the effective date. Because the instant lien relates exclusively to post effective date debt, the exemption applies.

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

In Re Puckett · filed 2000-11-03(l)

if no objection is made to a claim of exemption, the property is exempt.

Section 522(f)(1) allows a debtor to avoid a judicial lien to the extent it impairs an exemption to which the debtor would have been entitled under § 522(b).

Little v. Reaves (In Re Reaves) · filed 2000-11-06(f)(1)

The debtor was entitled to claim an exemption in her motor vehicle for its full value under California law, and may thus avoid the appellant’s judicial lien, in its entirety, under § 522(f). The bankruptcy court’s order which avoided the appellant’s lien is AFFIRMED.

A refinancing with different terms, a new account, and proceeds used to extinguish the earlier debt creates a separate post-enactment security interest subject to avoidance under section 522(f)(2)(A).

In Re Fulkerson · filed 1982-01-18§ 522(f)(2)(A)

the lien on household goods of Evansville Morris Plan Company, Inc., be and is subject to avoidance pursuant to 11 U.S.C. § 522(f)

Repeated refinancings are treated as new loans when the total circumstances show separate transactions, making the resulting household-goods lien avoidable under section 522(f).

In Re Calloway · filed 1982-01-18§ 522(f)(2)(A)

Under a totality of the circumstances and facts here, this Court will avoid the nonpos-sessory, nonpurchase money lien on the household goods.

Successive refinancing transactions, including added collateral, may create a new post-enactment lien subject to avoidance under section 522(f).

In Re Harris · filed 1982-01-18§ 522(f)(2)(A)

each of the refinancing transactions would also be treated as an entirely new loan.

Refinancing converts a purchase-money security interest into a nonpurchase-money interest that is subject to avoidance under section 522(f).

In Re Keeton · filed 1993-11-10§ 522(f)

Here, when Beneficial loaned money to the debtors in May 1991, it was not advancing money to the seller (Culligan) nor was it enabling the debtors to buy a-water softener; the debtors had already purchased the water softener.

Section 522(f)(2) does not permit avoidance of liens established before the Bankruptcy Reform Act of 1978 was enacted.

First State Bank of Carrollton v. Strickland (In re Strickland) · filed 1982-12-29(f)(2)

Since there was an absence of a clear expression of congressional intent, to apply section 522(f)(2) to pre-enactment property rights, the law was construed to be inapplicable to those rights. ... Under the uncontradicted facts the lien of plaintiff was established prior to the November 6, 1978, enactment date of the Bankruptcy Reform Act of 1978. The holding in United States v. Security Industrial Bank, supra, clearly controls the legal issue in the instant proceeding.

Section 522(f) sets no filing deadline for lien avoidance; reopening a closed case remains subject to equitable considerations such as delay and creditor prejudice.

In Re Bianucci · filed 1993-10-27§ 522(f)(1)

Neither section 350(b) nor section 522(f), the lien avoidance provision that the Bianuccis seek to invoke, sets time limits on debtors’ motions to avoid liens, and courts have dealt with such motions in different ways.

A local rule cannot make timeliness the sole bar to reopening a bankruptcy case for a section 522(f) motion; the court must consider delay, prejudice, and other equitable factors.

McDonald v. Home State Bank & Trust Co. (In Re McDonald) · filed 1993-11-18§ 522(f)

We agree with the decisions cited above that, when section 350(b) is read in conjunction with section ... motions unless equitable considerations dictate otherwise.

Section 522(f) has no express filing deadline, so a debtor may seek judicial-lien avoidance at any time.

In Re Love · filed 2007-12-19(f)(1)(A)

Neither the Code nor the Bankruptcy Rules contain an express deadline for the exercise of the debtor’s rights under section 522(f). ... Debtor may seek avoidance of the lien at any time.

When payments cannot be allocated between a preexisting loan and a later purchase-money loan consolidated through renewals, the purchase-money character is destroyed and the lien becomes avoidable under section 522(f).

Matter of Luczak · filed 1982-01-19§ 522(f)

Therefore, the purchase money character of the security interest must be considered destroyed and debtors allowed to avoid Thorp’s lien on the microwave.

Section 522(f)(2)(A) lets a debtor avoid a nonpossessory, nonpurchase-money security interest in household goods when it impairs an exemption.

Smiley v. Feldman Furniture Co. (In Re Smiley) · filed 1988-02-19(f)(2)(A)

We conclude, therefore, that the debtors may avoid Feldman’s security interest acquired under the November 14, 1984 contract because, as classified in 11 U.S.C. § 522(f)(2)(A), that interest became a non-purchase money security interest when it was consolidated (but not continued) with the March 7, 1985 contract.

The court alternatively applied § 522(d)(10)(E) to the debtor's annuity, although it denied the exemption objection as untimely.

In Re Smith · filed 1995-03-02(d)(10)(E)

On its face, § 522(d)(10)(E) appears to be a clearly applicable alternative basis for the exemption claim in issue, as it appears to apply to any “annuity ... ■ on account of ... disability."

Section 522(d)(10)(E) does not exempt a wrongful-death settlement annuity merely because the payments take the form of an annuity.

In Re Ortiz · filed 2009-12-15(d)(10)(E)

The Trustee has met his burden to prove the exemption in the annuity is improperly claimed. Debtor’s only argument to support the exemption is that § 522(d)(10)(E) is broad enough to exempt virtually every type of annuity. However, Debtor’s interpretation impermissibly extends both the Congressional grant and the Kansas legislature’s adoption of it.

A debtor may recover garnished wages under section 522(h) when the transfer occurred within the preference period and the wages were exempt under state law.

Walden v. First Tennessee Bank (In Re Walden) · filed 1982-05-03§ 522(h)

The transfer occurred within 90 days and may be avoided by the debtors.

Section 522(f)(2)(A) does not authorize avoidance of a lien on a motor vehicle because a motor vehicle is not household goods.

Martinez v. Government Employees Credit Union of El Paso (In Re Martinez) · filed 1982-05-10§ 522(f)(2)(A)

This Court, therefore, will not allow plaintiffs to void defendant’s lien on a motor vehicle because motor vehicles are not “household goods” within the meaning of 11 U.S.C. § 522(f)(2)(A) (1978).

A judgment lien may be avoided retroactively under section 522(f)(1) when state law gives the judgment creditor no specific property interest or estate in the debtor’s real property.

Hinson v. Lexington State Bank (In Re Hinson) · filed 1982-04-19§ 522(f)(1)

This court holds that § 522(f)(1) may be applied retroactively here without violating the Fifth Amendment of the United States Constitution.

Section 522(f) does not authorize Chapter 13 debtors to avoid judicial or nonpossessory, nonpurchase-money liens when no Chapter 13 exemption is being impaired.

Corden v. Dial Finance Co. (In Re Corden) · filed 1982-04-20§ 522(f)

Judgment I hold that in a Chapter 13 case pending before this Court that a debtor will not be permitted to utilize § 522(f) to avoid either (1) a judicial lien, or (2) a non-possessory or non-purchase money security interest in property described in this section.

A debtor may exempt tools and implements of the trade under section 522(f)(2)(B), but the federal lien-avoidance power does not reach property that is not exemptible tools of trade on the petition date.

In Re Johnson · filed 1982-04-09§ 522(f)(2)(B)

This Court must conclude that CSB’s collateral was not exempt-able tools of trade on the date of the petition.

Section 522(b)(1) permits a state opt-out, so a Nebraska debtor must use state exemptions and cannot claim a homestead exemption reserved by state law for a different class of persons.

Hartmann v. Wolf (In Re Hartmann) · filed 1982-04-26§ 522(b)(1)

The result is that an individual in Nebraska must look solely to state law for his exemptions.

Section 522(b)(1)’s state opt-out and the federal exemption scheme are constitutional.

In Re Tidwell · filed 1982-04-26§ 522(b)(1)

The exemption scheme of the Bankruptcy Reform Act of 1978, the Bankruptcy Code, is indeed constitutional and has so been held.

A refinancing creates a new nonpossessory, nonpurchase-money security interest subject to section 522(f) lien avoidance.

Aalgaard v. Public Finance (In Re Aalgaard) · filed 1982-03-31§ 522(f)(2)

Thus, when plaintiffs refinanced their obligation on January 29, 1981 a new nonpossessory, nonpurchase-money security interest arose which is subject to lien avoidance by the plaintiffs under 11 U.S.C.

A judicial lien may be avoided under section 522(f) to the extent it exceeds the equity remaining after the debtor’s exemption and senior liens.

Holyst v. Diamond International Corp. (In Re Holyst) · filed 1982-04-02§ 522(f)(1)

The value of the debtor’s property having been found to be $92,000.00, Diamond’s lien is avoided to the extent of any amount in excess of $1,000.00.

Section 522(f)(2)(B) does not reach a vehicle merely because the debtor uses it in the trade; “tools of the trade” is limited to items peculiar to the trade and necessary to its practice.

Thorp Credit & Thrift Co. v. Tofstad (In Re Tofstad) · filed 1982-04-07§ 522(f)(2)(B)

This Court, therefore, is of the view that the provisions of § 522(f)(2)(B) should be narrowly construed and that the definition of implements or tools of the trade must be limited to those items that are peculiar to the trade or profession of the debtor, and without which he or she could not ply his or her trade or profession.

Section 522(f) does not avoid prospective liens on property the debtor may acquire in the future; it reaches only an existing qualifying lien that impairs an exemption.

Clowney v. North Carolina National Bank (In Re Clowney) · filed 1982-04-07§ 522(f)

Section 522(f) does not provide for the avoidance of prospective liens on future property.

A debtor may avoid a qualifying lien created during the gap period between enactment and effectiveness of the Bankruptcy Code because the creditor had notice of the new law.

Webber v. Credithrift of America, Inc. · filed 1982-04-14§ 522(f)(2)(A)

When Credithrift made the loans in July, 1979, it should have been fully aware that the exemption provisions of § 522 would become effective on October 1, 1979, and that any bankruptcy filed subsequent to that date could result in an avoidance of their liens on the exempt property.

A judicial lien attached before the debtor acquired the property is not avoidable under section 522(f)(1), because the lien did not fix on an interest the debtor already owned.

McCormick v. Mid-State Bank & Trust Co. (In Re McCormick) · filed 1982-03-24§ 522(f)(1)

In other words, a judicial lien which had attached to an interest in property prior to the Debtor’s acquisition of that interest is not avoidable pursuant to § 522(f)(1).

A nonpurchase-money security interest in household goods may be avoided under section 522(f) to the extent it impairs the debtors’ exemption.

Culp v. Commercial Credit Plan Consumer Discount Co. (In re Culp) · filed 1982-03-24§ 522(f)(2)

It is hereby avoided to the extent it impairs the exemption to which the debtors are entitled.

A Chapter 7 case may be reopened for section 522(f) relief, and a Maryland judgment lien may be avoided when it falls within the Code’s lien-avoidance provision.

Johnson v. First & Merchants National Bank (In Re Johnson) · filed 1982-03-19§ 522(f)

It is therefore proper to permit this matter to be reopened for the purpose of according the relief to Debtors to which they are entitled.

A confession-of-judgment lien on Virginia tenancy-by-the-entireties property is not exempt under section 522(b)(2)(B) when the joint judgment creditor can reach the property.

Ambler Coleman Ragsdale and Ann Parrish Hancock Ragsdale v. Genesco, Inc. · filed 1982-03-24§ 522(b)(2)(B)

If the Ragsdales’ residential real property could be reached to satisfy a state court judgment in Virginia, it could not be successfully claimed as exempt under Section 522(b)(2)(B).

A debtor may exempt tools and implements of the trade free of nonpossessory, nonpurchase-money security interests, while the creditor may foreclose on the remaining equipment.

Kay Bank N. A. v. Duchesne (In Re Duchesne) · filed 1982-03-30§ 522(f)(2)(B)

The debtor here is entitled to the exemption of so much of the inventoried equipment as constitutes the tools and implements of his trade, free of any non-possessory, nonpur-chase-money security interests held by the Bank.

A judgment lien on a California homestead may be avoided under section 522(f) even when state law would otherwise preserve liens recorded before the homestead declaration.

Baxter v. Kaiser (In Re Baxter) · filed 1982-03-23§ 522(f)

We hold that 11 U.S.C. § 522(f) may be utilized to avoid the impairment caused by the judgment liens of the homestead claimed under C.C.C. § 1237 et seq.

A confessed-judgment lien is a judicial lien avoidable under section 522(f) to the extent it impairs the debtors’ exemption, and avoiding it does not enhance a later mortgagee’s position.

Vigne v. Equibank, N. A. (In Re Vigne) · filed 1982-03-29§ 522(f)

On the basis of the foregoing, the Court concludes that Equibank’s lien is judicial and avoidable to the extent that it impairs debtors’ exemption of $13,680.

A pickup truck is not a “tool of the trade” for section 522(f)(2)(B) purposes when the debtor’s work uses it for transportation rather than as an instrument of the trade, so its lien is not avoidable.

Curry v. Dial Finance Corp. (In Re Curry) · filed 1982-03-18§ 522(f)(2)(B)

The court concludes that the pickup truck is not a tool of the trade of the debtor and that the lien may not be avoided.

A debtor seeking recovery under section 522(h) must show that the recovered payments could have been exempted; full use of the applicable exemptions defeats recovery.

In Re Lawrence · filed 1982-03-19§ 522(h)

nonetheless the Court must deny debtor’s motion on the ground that debtor has failed to demonstrate that the monies are recoverable as exempt property.

Section 522(f) allows avoidance of liens, not merely exemption of the debtor’s equity, so it protects household goods that would have been exempt but for a nonpossessory, nonpurchase-money lien.

Pine v. Credithrift of America, Inc. · filed 1982-03-22§ 522(f)

Part (f) allows avoidance of liens, not just the exemptions of Part (b). Hence by avoiding liens, Part (f) allows exemption of property that would have been exempt under Part (b) if the liens did not exist.

Section 522(f) protects household goods that would have been exempt under state law but for a nonpossessory, nonpurchase-money security interest, including preexisting liens.

Giles v. Credithrift of America, Inc. (In Re Giles) · filed 1982-03-22§ 522(f)

Part (f) allows the debtors to avoid liens on household goods that would have been exempt under Part (b), but for nonpossessory, nonpurchase money security interests.

A nonpurchase-money lien on a cab-tractor may be avoided under section 522(f) to the extent it impairs the debtor’s tools-of-trade and wildcard exemptions, while the purchase-money trailer lien is not avoidable.

Associates Commercial Corp. v. Dillon (In Re Dillon) · filed 1982-03-10§ 522(f)

Therefore, pursuant to the above analysis, the nonpurchase money, nonpossessory lien held by ASSOCIATES in the cab-tractor or the sales proceeds thereof may be avoided by the debtors to the extent of their legitimate exemption of $15,450.00.

A court may avoid section 522(f) liens after discharge and case closure without imposing an arbitrary filing deadline when no creditor prejudice is shown.

Schneider v. Beneficial Finance Co. (In Re Schneider) · filed 1982-03-10§ 522(f)

For the reasons stated, IT IS ORDERED that the liens in question in each of the above adversary proceedings are avoided and that the counterclaim in Adversary No. 81-7122 is dismissed.

A debtor may combine the section 522(d)(1) and (d)(5) exemptions to protect equity in a homestead.

Brennan v. Ted Arnold Industries, Inc. (In Re Brennan) · filed 1982-03-12§§ 522(d)(1), 522(d)(5)

Accordingly, the Brennans are entitled to combine their § 522(d)(1) and (5) exemptions and thereby set aside $15,800 in equity in their home.

A debtor may avoid a judicial lien on tenancy-by-the-entireties property to the extent it impairs the debtor’s exemption, but the avoidance does not necessarily defeat a joint creditor’s rights against the entireties estate.

In Re Buckwalter · filed 1982-03-15§ 522(f)

First, the lien is avoided only to the extent it impairs the debtor’s exemption.

Community-property law limits what each spouse may exempt under section 522(d).

Associates Financial Services Co. v. Dahdah (In Re Dahdah) · filed 1982-03-16§ 522(d)

A spouse is limited by community property law in what he or she can exempt under § 522(d).

A consolidated loan without an allocation method loses its purchase-money character, allowing avoidance of the household-goods lien under section 522(f)(2).

Kelley v. United American Bank in Knoxville (In Re Kelley) · filed 1982-02-19§ 522(f)(2)

The court concludes that by consolidating the loans and the debt and by failing to provide any method of apportioning the transaction or payments received pursuant thereto, UAB lost its purchase money security interest in the household goods. The debtor may, therefore, avoid the lien.

A confessed-judgment lien is a judicial lien rather than the functional equivalent of a mortgage and may be avoided under section 522(f) to the extent it impairs an exemption.

In Re Carr · filed 1982-02-23§ 522(f)(1)

We conclude that the Bank’s lien is a judicial lien which may be avoided to the extent that it impairs the debtor’s exemption.

A late section 522(f) motion may be timely when strict application of local rules would be inequitable and the creditor did not pursue its nonbankruptcy remedies before bankruptcy.

In Re Baker · filed 1982-02-24§ 522(f)

For the foregoing reasons, the debtor’s motion to avoid the lien of General Finance was timely made within the intent and spirit of the Bankruptcy Code and this Court’s Local Rules.

A debtor may file a section 522(f) complaint after discharge absent creditor prejudice, but a judicial lien on a Tennessee survivorship interest is not avoidable when it impairs no homestead exemption.

Stephenson v. General Motors Acceptance Corp. (In Re Stephenson) · filed 1982-02-25§ 522(f)(1)

Since the debtor has no homestead exemption which General Motors’ lien can impair, the debtor cannot avoid this lien pursuant to 11 U.S.C. § 522(f)(1).

A statutory IRS tax lien is not a judicial lien or a qualifying security interest and cannot be avoided under section 522(f).

In Re Booth · filed 1982-02-25§ 522(f)(1)

For the above reasons we conclude that the I.R.S. lien is not avoidable under 11 U.S.C. § 522(f).

Workers’ compensation benefits, including a lump-sum award, may be exempted without the dollar limits applicable to personal-injury payments under section 522(d)(10)(C).

In Re LaBelle · filed 1982-03-01§ 522(d)(10)(C)

The Court concludes that the Debtor’s workers’ compensation benefits may be exempted under Section 522(d)(10)(C).

In a Virginia opt-out state, debtors may claim state exemptions in effect on the filing date, including the homestead and entireties-property exemptions.

Community Hospital of Roanoke Valley, Inc. v. Musser (In re Musser) · filed 1982-03-01§§ 522(b)(2)(A), 522(b)(2)(B)

Accordingly, the debtors in this case are entitled to exempt property as enumerated in state or local law on the date of the filing of their petition.