Motion to Avoid Lien - Alabama

PREPARATION GUIDE — NOT A FILING-READY DOCUMENT

This motion must be conformed to the Federal Rules of Bankruptcy Procedure, the local rules of the applicable Alabama bankruptcy district (N.D./M.D./S.D. Ala.), and any judge-specific or negative-notice (default-order) procedures before filing. Verify current Alabama exemption amounts and check the district's local rules and required forms. Do not file without attorney review.

DEBTOR'S MOTION TO AVOID JUDICIAL LIEN UNDER 11 U.S.C. § 522(f)

UNITED STATES BANKRUPTCY COURT

☐ NORTHERN ☐ MIDDLE ☐ SOUTHERN DISTRICT OF ALABAMA

DEBTOR'S MOTION TO AVOID JUDICIAL LIEN UNDER 11 U.S.C. § 522(f)

COMES NOW the Debtor, [DEBTOR NAME], by and through undersigned counsel, and moves this Court pursuant to 11 U.S.C. § 522(f) and Fed. R. Bankr. P. 4003(d) and 9014 for entry of an order avoiding the judicial lien of [CREDITOR NAME] to the extent it impairs the Debtor's exemption, and in support states as follows:

1. Jurisdiction and authority. This Court has jurisdiction under 28 U.S.C. §§ 157 and 1334. This is a core proceeding under 28 U.S.C. § 157(b)(2)(K) (determinations of the validity, extent, or priority of liens). This Motion is brought under 11 U.S.C. § 522(f)(1)(A), which permits 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. The Motion is governed procedurally by Fed. R. Bankr. P. 4003(d) and 9014.

2. Nature of the lien (select one).

☐ Judicial lien — § 522(f)(1)(A). The lien sought to be avoided is a judicial lien within the meaning of 11 U.S.C. § 101(36), arising from a money judgment, and is not a lien securing a domestic support obligation.

☐ Nonpossessory, nonpurchase-money security interest — § 522(f)(1)(B). The lien sought to be avoided is a nonpossessory, nonpurchase-money security interest in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, musical instruments, or jewelry held primarily for the personal, family, or household use of the Debtor or a dependent of the Debtor, or in implements, professional books, or tools of the trade.

3. The judgment and lien.

4. The property.

5. The exemption claimed (Alabama law).

Alabama has opted out of the federal bankruptcy exemptions under Ala. Code § 6-10-11; accordingly, the Debtor claims exemptions under Alabama law (and any applicable non-§ 522(d) federal exemptions), not under 11 U.S.C. § 522(d). The Debtor claimed the following exemption on Schedule C:

6. Impairment under § 522(f)(2)(A). A lien impairs an exemption to the extent the sum of (i) the lien to be avoided, (ii) all other liens on the property, and (iii) the amount of the exemption the Debtor could claim absent any liens, exceeds the value the Debtor's interest in the property would have in the absence of any liens.

7. Extent of avoidance. Because the sum on Line D exceeds the value on Line E, the lien impairs the Debtor's exemption and is avoidable under § 522(f)(2).

☐ Full avoidance. The impairment (Line F) equals or exceeds the amount of the judicial lien (Line A); the lien is avoided in its entirety.

☐ Partial avoidance. The lien is avoided to the extent of $[____] (the lesser of Line A or Line F); any non-impairing remainder survives.

8. No domestic support obligation. The lien does not secure a domestic support obligation within the meaning of 11 U.S.C. §§ 101(14A) and 523(a)(5), and is therefore not excluded from avoidance under § 522(f)(1)(A).

9. Relief requested. WHEREFORE, the Debtor respectfully requests that this Court enter an order:

(a) avoiding the judicial lien of [CREDITOR NAME] on the property described above, in full or to the extent of $[____], pursuant to 11 U.S.C. § 522(f);
(b) declaring the avoided lien void and of no effect as against the Debtor and the property;
(c) preserving the Debtor's exemption in the property; and
(d) granting such other and further relief as is just and proper.

Respectfully submitted,

_________________________________ Date: [__/__/____]
[ATTORNEY NAME], Attorney for Debtor
Alabama State Bar No. [____]
[FIRM NAME, ADDRESS, PHONE, EMAIL]

NOTICE OF MOTION AND OPPORTUNITY TO OBJECT

TO THE JUDGMENT CREDITOR AND ALL PARTIES IN INTEREST: The Debtor has filed the foregoing Motion to Avoid Judicial Lien. Your rights may be affected.

If you oppose the Motion, you must file a written objection with the Clerk of the United States Bankruptcy Court, [DISTRICT] District of Alabama, and serve a copy on undersigned counsel, within [____] days of the date of service stated below. If no objection is timely filed, the Court may grant the relief requested without further notice or hearing and may enter the proposed order. If an objection is timely filed, the Court will schedule a hearing and notify the parties.

CERTIFICATE OF SERVICE

I certify that on [__/__/____] I served a copy of the foregoing Motion, the Notice, and the proposed Order on the parties below by the method indicated:

• [CREDITOR NAME], by first-class U.S. mail and, if an insured depository institution, by certified mail addressed to an officer of the institution (Fed. R. Bankr. P. 7004(h)), at [ADDRESS];
• Counsel for the judgment creditor (if known), at [ADDRESS];
• The Chapter [7/13] Trustee, at [ADDRESS];
• The Bankruptcy Administrator for the [DISTRICT] District of Alabama (Alabama is a Bankruptcy Administrator district; do NOT serve a U.S. Trustee), at [ADDRESS];
• All other lienholders of record, at [ADDRESS]; and
• by CM/ECF to all parties registered to receive electronic notice in this case.

_________________________________
[ATTORNEY NAME], Attorney for Debtor

PROPOSED ORDER

UNITED STATES BANKRUPTCY COURT, [____] DISTRICT OF ALABAMA

In re [DEBTOR NAME], Debtor. Case No. [________]. Chapter [7/13].

ORDER AVOIDING JUDICIAL LIEN UNDER 11 U.S.C. § 522(f)

This matter came before the Court on the Debtor's Motion to Avoid Judicial Lien under 11 U.S.C. § 522(f). The Court finds that proper notice was given, that no timely objection was filed (or that any objection has been resolved or overruled), and that the lien impairs an exemption to which the Debtor is entitled under Alabama law. Accordingly, it is ORDERED:

1. The Motion is GRANTED.

2. The judicial lien of [CREDITOR NAME], arising from the judgment entered [__/__/____] in [COURT], case no. [________], and recorded by certificate of judgment in the Office of the Judge of Probate of [____] County, Alabama, on [__/__/____] at [instrument/book & page], on the following property —

[PROPERTY DESCRIPTION / LEGAL DESCRIPTION]

is AVOIDED pursuant to 11 U.S.C. § 522(f) ☐ in its entirety ☐ to the extent of $[____], and is void to that extent as against the Debtor and the property.

3. The Debtor's exemption in the property is preserved.

4. Upon entry of this Order, the Debtor may record a certified copy in the Office of the Judge of Probate of [____] County to evidence the avoidance of the lien of record.

SO ORDERED.

Dated: [__/__/____] _________________________________
United States Bankruptcy Judge

ALABAMA PRACTICE NOTES

• Opt-out state. Alabama has opted out of the federal exemption scheme under Ala. Code § 6-10-11. Alabama debtors may NOT elect the 11 U.S.C. § 522(d) federal exemptions; they use Alabama state exemptions together with any applicable federal non-bankruptcy exemptions. The exemption impaired in a § 522(f) motion is therefore an Alabama exemption.
• Applicable Alabama exemptions.
• Homestead — Ala. Code § 6-10-2: $18,800 per debtor (effective April 1, 2024), dwelling and land not exceeding 160 acres; spouses may each claim the exemption (effective doubling on jointly owned homestead). Also rooted in Ala. Const. art. X, § 205.
• Personal property — Ala. Code § 6-10-6 / Ala. Const. art. X, § 205: $9,400 (effective April 1, 2024) in personal property selected by the debtor, plus necessary wearing apparel, family portraits, and family books.
• Amounts adjust every three years (last adjustment April 1, 2024; next expected April 1, 2027). Verify on the district exemption page (e.g., https://www.alsb.uscourts.gov/alabama-exemption-amounts) before filing.
• Wages are excluded from the personal-property exemption (Ala. Code § 6-10-6.1) but receive separate garnishment protection (75% of wages) under Ala. Code § 6-10-7.
• § 522(f) mechanics. Use the § 522(f)(2)(A) arithmetic in Paragraph 6 — sum the lien to be avoided, all other liens, and the exemption, then subtract the property's value. Avoidance is available only to the extent of impairment; a lien that does not impair an exemption (e.g., where there is no equity reaching the exemption, or substantial equity exceeds all liens plus the exemption) is not avoidable. Judicial liens securing domestic support obligations are not avoidable.
• Judgment liens in Alabama. A judgment becomes a lien on the debtor's real property in a county when a certificate of judgment is recorded with that county's Judge of Probate (Ala. Code §§ 6-9-210, 6-9-211). The recording particulars must be pleaded so the order can describe the lien with specificity and be recorded to clear title.
• Bankruptcy Administrator, not U.S. Trustee. Alabama and North Carolina are the only states in the Bankruptcy Administrator program. Serve and copy the Bankruptcy Administrator for the applicable district — there is no U.S. Trustee in Alabama.
• Local procedure. Confirm whether the applicable district (N.D., M.D., or S.D. Ala.) requires a specific local motion/notice form, a particular negative-notice response period, and a separately uploaded proposed order. Check each district's local rules and forms page.
• Unsettled / fact-specific points. Whether a particular lien is a "judicial lien" (versus a consensual or statutory lien that § 522(f) cannot reach), the proper valuation date, and the doubling of the homestead exemption on jointly held property can be contested; preserve supporting evidence (appraisal, payoff statements, recorded instruments).

SOURCES AND REFERENCES

• 11 U.S.C. § 522(f) — Lien avoidance: https://www.law.cornell.edu/uscode/text/11/522
• 11 U.S.C. § 522(f)(2)(A) — Impairment formula: https://www.law.cornell.edu/uscode/text/11/522
• Fed. R. Bankr. P. 4003(d), 9014, 7004(h): https://www.uscourts.gov/rules-policies
• Ala. Code § 6-10-2 (homestead): https://law.justia.com/codes/alabama/title-6/chapter-10/article-1/division-1/section-6-10-2/
• Ala. Code § 6-10-6 (personal property): https://law.justia.com/codes/alabama/title-6/chapter-10/
• Ala. Code § 6-10-6.1 (wages excluded): https://codes.findlaw.com/al/title-6-civil-practice/al-code-sect-6-10-6-1/
• Ala. Code § 6-10-11 (opt-out): https://law.justia.com/codes/alabama/title-6/chapter-10/article-1/division-1/section-6-10-11/
• Ala. Code §§ 6-9-210, 6-9-211 (judgment liens): https://law.justia.com/codes/alabama/title-6/chapter-9/
• Southern District of Alabama — Alabama exemption amounts: https://www.alsb.uscourts.gov/alabama-exemption-amounts
• U.S. Bankruptcy Court, Northern District of Alabama: https://www.alnb.uscourts.gov
• U.S. Bankruptcy Court, Middle District of Alabama: https://www.almb.uscourts.gov
• U.S. Bankruptcy Court, Southern District of Alabama: https://www.alsb.uscourts.gov

This template assists in preparing a motion to avoid a lien under 11 U.S.C. § 522(f). Local rules may impose additional requirements. Always verify current Alabama exemption amounts and district procedures before filing. Not a substitute for legal advice.