Motion to Avoid Lien - Connecticut

UNITED STATES BANKRUPTCY COURT

DISTRICT OF CONNECTICUT

DEBTOR'S MOTION TO AVOID [JUDICIAL LIEN / NONPOSSESSORY, NONPURCHASE-MONEY SECURITY INTEREST] UNDER 11 U.S.C. § 522(f)

[DEBTOR NAME] (the "Debtor"), by and through undersigned counsel, respectfully moves this Court, pursuant to 11 U.S.C. § 522(f) and Federal Rules of Bankruptcy Procedure 4003(d) and 9014, for an order avoiding the lien described below to the extent it impairs an exemption to which the Debtor is entitled. In support, the Debtor states:

1. Jurisdiction and Authority

1. 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).

2. The Debtor filed a voluntary petition under Chapter [____] of Title 11 on [__/__/____].

3. This Motion is brought under 11 U.S.C. § 522(f)(1), which permits a debtor to avoid the fixing of a lien on an interest of the debtor in property to the extent the lien impairs an exemption to which the debtor would have been entitled under 11 U.S.C. § 522(b). Procedure is governed by Fed. R. Bankr. P. 4003(d) and 9014, with service under Fed. R. Bankr. P. 7004.

2. The Lien To Be Avoided

4. The lien the Debtor seeks to avoid is held by the following creditor:

5. The lien is (check one):

☐ A judicial lien under 11 U.S.C. § 522(f)(1)(A), arising from a judgment entered in [COURT NAME], Docket No. [____________], on [__/__/____], in the amount of $[____________], and perfected as a lien by recording a judgment lien certificate on the land records of the [TOWN] Town Clerk on [__/__/____] at Volume [____], Page [____] (Conn. Gen. Stat. § 52-380a).

☐ A nonpossessory, nonpurchase-money security interest under 11 U.S.C. § 522(f)(1)(B) in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, musical instruments, jewelry, implements, professional books, tools of the trade, or prescribed health aids, created by a security agreement dated [__/__/____] in favor of the creditor.

6. The lien does not secure a domestic support obligation and is therefore not excepted from avoidance under 11 U.S.C. § 522(f)(1)(A)(i)–(ii).

3. The Property

7. The lien attaches to the following property in which the Debtor holds an interest:

4. The Claimed Exemption (Connecticut — Choice of Federal or State)

8. Connecticut permits a debtor to choose between (a) the federal bankruptcy exemptions of 11 U.S.C. § 522(d) and (b) the Connecticut state exemptions (Conn. Gen. Stat. § 52-352b). The debtor must elect one set; the elected set determines the exemption used in the § 522(f)(2)(A) impairment calculation.

9. The Debtor elected and claimed on Schedule C the following (check the applicable set and basis):

☐ CONNECTICUT STATE EXEMPTIONS (Conn. Gen. Stat. § 52-352b):

☐ Homestead — Conn. Gen. Stat. § 52-352b(t), in the amount of $[____________] (statutory amount $250,000 in the fair market value of the debtor's interest, less any consensual or statutory liens; per owner — co-owning spouses filing jointly may each claim, up to $500,000 — VERIFY current amount as of the petition date).

☐ Household goods / necessary apparel, bedding, foodstuffs, furniture and appliances — Conn. Gen. Stat. § 52-352b(a), in the amount of $[____________].

☐ Motor vehicle — Conn. Gen. Stat. § 52-352b(j), in the amount of $[____________].

☐ Tools of the trade — Conn. Gen. Stat. § 52-352b(b), in the amount of $[____________].

☐ Wildcard — Conn. Gen. Stat. § 52-352b(r), in the amount of $[____________].

☐ FEDERAL EXEMPTIONS (11 U.S.C. § 522(d)):

☐ Homestead — § 522(d)(1) (in the amount of $[____________]; statutory $31,575, adjusted every three years, next April 1, 2028 — VERIFY); ☐ household goods — § 522(d)(3); ☐ tools of trade — § 522(d)(6); ☐ motor vehicle — § 522(d)(2); ☐ wildcard — § 522(d)(5).

☐ Other Connecticut exemption — [CITATION], in the amount of $[____________].

10. The exemption was claimed on Schedule C and ☐ has not been objected to / ☐ is the subject of [DESCRIBE]. ☐ An amended Schedule C is filed concurrently.

5. Impairment Under 11 U.S.C. § 522(f)(2)(A)

11. A lien impairs an exemption to the extent that the sum of (i) the lien sought to be avoided, (ii) all other liens on the property, and (iii) 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. 11 U.S.C. § 522(f)(2)(A).

12. Applying the formula, the sum on Line D ($[____________]) exceeds the value on Line E ($[____________]). The lien therefore impairs the Debtor's exemption.

6. Extent of Avoidance

13. The lien is avoided as follows (check one):

☐ In its entirety. Because the impairment (Line F) equals or exceeds the amount of the lien (Line A), the lien is wholly avoided.

☐ In part. The lien is avoided in the amount of $[____________], and survives as a lien in the amount of $[____________].

7. Relief Requested

WHEREFORE, the Debtor respectfully requests that the Court:

(a) Enter an order avoiding the lien described above under 11 U.S.C. § 522(f) to the extent it impairs the Debtor's exemption;

(b) Declare the avoided lien void and of no further force or effect against the Debtor and the subject property, and provide that the Debtor or any party in interest may record a certified copy of the order on the land records of the [TOWN] Town Clerk to clear title;

(c) Direct the creditor to release the lien of record within [____] days of the order; and

(d) Grant such other relief as is just and proper.

8. Notice and Opportunity to Object

14. NOTICE IS HEREBY GIVEN that any party opposing this Motion must file a written objection with the Clerk of the United States Bankruptcy Court for the District of Connecticut and serve it on the undersigned within the time prescribed by the applicable Local Bankruptcy Rules and notice procedures.

☐ Pursuant to Local Bankruptcy Rule, you have [____] days from the date of service to file and serve a written objection.

☐ If no objection is timely filed, the Court may grant the relief requested without a hearing.

☐ A hearing is scheduled for [__/__/____] at [____] [a.m./p.m.] before the Honorable [JUDGE NAME].

9. Certificate of Service

I certify that on [__/__/____], a true and correct copy of this Motion, supporting papers, and the proposed order was served on the parties below in the manner indicated, including service on the creditor in compliance with Fed. R. Bankr. P. 7004:

Dated: [__/__/____]

[____________________________________]
[ATTORNEY NAME], Connecticut Juris No. [________]
Attorney for Debtor
[FIRM NAME] · [ADDRESS] · [PHONE] · [EMAIL]

PROPOSED ORDER

UNITED STATES BANKRUPTCY COURT

DISTRICT OF CONNECTICUT

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

This matter came before the Court on the Debtor's Motion to Avoid Lien under 11 U.S.C. § 522(f). The Court finds that notice was adequate, 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 the exemption set elected by the Debtor. Accordingly,

IT IS ORDERED:

1. The Motion is GRANTED.

2. The lien of [CREDITOR NAME] ☐ recorded on [__/__/____] at Volume [____], Page [____] on the land records of the [TOWN] Town Clerk / ☐ created by security agreement dated [__/__/____], on the property described as [____________________________________], is AVOIDED under 11 U.S.C. § 522(f):

☐ in its entirety; or ☐ in the amount of $[____________], leaving a surviving lien of $[____________].

3. The avoided lien is void and of no further force or effect against the Debtor and the subject property to the extent avoided. A certified copy of this Order may be recorded on the land records of the [TOWN] Town Clerk.

4. The creditor shall release the avoided lien of record within [____] days of entry of this Order.

DATED: [__/__/____]

[____________________________________]
United States Bankruptcy Judge

CONNECTICUT PRACTICE NOTES

Choice state. Connecticut is not an opt-out state. A debtor may elect either the federal exemptions of 11 U.S.C. § 522(d) or the Connecticut state exemptions (Conn. Gen. Stat. § 52-352b). The election is all-or-nothing — no mixing. Which set the debtor chooses drives the § 522(f)(2)(A) impairment math (Line C). For most homeowners the Connecticut homestead is far more protective than the federal homestead, so debtors with home equity typically elect the state set.

Connecticut homestead — Conn. Gen. Stat. § 52-352b(t). Protects up to $250,000 in the fair market value of the debtor's interest in owner-occupied real property used as a primary residence, less any statutory or consensual liens. The amount is per owner, so co-owning spouses who file jointly may each claim it (up to $500,000 combined). The amount was raised to $250,000 effective Oct. 1, 2021; the Connecticut Supreme Court in In re Cole (2023) held that the increased amount applies even to debts that predate the increase. Verify the current amount as of the petition date.

Federal homestead alternative. If § 522(d) is elected, the homestead is $31,575 (adjusted every three years; next April 1, 2028), plus the § 522(d)(5) wildcard ($1,675 plus up to $15,800 of unused homestead). Debtors with little equity sometimes prefer the federal set for the larger wildcard.

Personal property — Conn. Gen. Stat. § 52-352b. Necessary apparel, bedding, foodstuffs, household furniture and appliances (§ 52-352b(a)); tools of the trade (§ 52-352b(b)); motor vehicle (§ 52-352b(j)); and a wildcard (§ 52-352b(r)), among others. For a § 522(f)(1)(B) nonpossessory, nonpurchase-money security interest in household goods, the household-goods exemption (state § 52-352b(a) or federal § 522(d)(3)) is the relevant impaired exemption.

Section 522(f)(2)(A) mechanics. Add the lien to be avoided + all other liens + the exemption the debtor could claim, compared to the value of the debtor's interest absent liens; the excess is the impairment and the lien is avoided to that extent. Because the Connecticut homestead is statutorily defined as value "less consensual and statutory liens," be careful not to double-count senior liens when populating Line C; courts generally apply the federal § 522(f)(2)(A) formula on its own terms. Address multiple judicial liens in inverse order of priority.

Local procedure. File in the United States Bankruptcy Court for the District of Connecticut (divisional offices in Hartford, New Haven, and Bridgeport). Follow the District of Connecticut Local Bankruptcy Rules and the assigned judge's procedures for the objection period, service, and order submission. Serve the creditor under Fed. R. Bankr. P. 7004.

Unsettled / verify points. (1) Current Connecticut homestead amount and the precise interaction between the § 52-352b(t) "less liens" definition and the § 522(f)(2)(A) formula; (2) current federal § 522(d) amounts; (3) the Local Rule objection period and hearing requirement; (4) 11 U.S.C. § 522(b)(3)(A) domicile/730-day rule.

SOURCES AND REFERENCES

• 11 U.S.C. § 522(f), (f)(2)(A) (lien avoidance; impairment formula).
• 11 U.S.C. § 522(b)(2), (b)(3), (d) (election; federal exemptions).
• Fed. R. Bankr. P. 4003(d), 9014, 7004.
• Conn. Gen. Stat. § 52-352a, § 52-352b (exempt property; personal property exemptions).
• Conn. Gen. Stat. § 52-352b(t) (homestead exemption; $250,000).
• Conn. Gen. Stat. § 52-380a (judgment lien on real property).
• In re Cole, Connecticut Supreme Court (2023) (increased homestead applies to pre-increase debts).
• United States Bankruptcy Court for the District of Connecticut, Local Bankruptcy Rules — ctb.uscourts.gov.