Motion to Avoid Lien - Maine

UNITED STATES BANKRUPTCY COURT

DISTRICT OF MAINE

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 [__/__/____] in this District.

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 the judgment / writ of execution in the [COUNTY] County Registry of Deeds on [__/__/____] (Book [____], Page [____]).

☐ 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 (Maine Opt-Out — State Exemptions Only)

8. Maine has opted out of the federal bankruptcy exemptions of 11 U.S.C. § 522(d). See 14 M.R.S. § 4426. Maine debtors claim only the Maine exemptions in 14 M.R.S. § 4422 (together with the federal nonbankruptcy exemptions allowed by 11 U.S.C. § 522(b)(3)(B)–(C)); the federal § 522(d) set is unavailable. The Maine exemption the Debtor could claim absent liens determines the exemption used in the § 522(f)(2)(A) impairment calculation. The § 522(f) right to avoid liens applies fully.

9. The Debtor claimed on Schedule C the following Maine exemption(s) (check applicable):

☐ Residence (homestead) — 14 M.R.S. § 4422(1), in the amount of $[____________]. Maine's residence exemption is generally $80,000, increased to $160,000 if (a) a minor dependent of the Debtor has a principal residence with the Debtor, or (b) the Debtor or a dependent is 60 years of age or older or is physically or mentally disabled and unable to engage in substantial gainful employment. Joint-ownership and joint-debtor caps apply (see § 4422(1)(A)–(B)).

☐ Applicable residence cap: ☐ $80,000 (standard) ☐ $160,000 (60+/disabled per § 4422(1)(B)) ☐ $160,000 (minor dependent residing with Debtor per § 4422(1)(A)).

☐ Motor vehicle — § 4422(2) ($10,000 in one vehicle); ☐ household goods/furnishings, clothing, appliances — § 4422(3) ($500 per item); ☐ jewelry — § 4422(4); ☐ tools of the trade — § 4422(5) ($9,500); ☐ wildcard/spillover — § 4422(15) and unused-residence spillover under § 4422(16); in the amount of $[____________]. VERIFY current amounts.

☐ Other Maine 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 in the [COUNTY] County Registry of Deeds to clear title;

(c) Direct the creditor to release/discharge 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 or response with the Clerk 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], Courtroom [____].

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], Maine Bar No. [________]
Attorney for Debtor
[FIRM NAME] · [ADDRESS] · [PHONE] · [EMAIL]

PROPOSED ORDER

UNITED STATES BANKRUPTCY COURT

DISTRICT OF MAINE

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 Maine exemptions (Maine having opted out of the federal exemptions under 14 M.R.S. § 4426). Accordingly,

IT IS ORDERED:

1. The Motion is GRANTED.

2. The lien of [CREDITOR NAME] ☐ recorded on [__/__/____] (Book [____], Page [____]) in the [COUNTY] County Registry of Deeds / ☐ 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 in the [COUNTY] County Registry of Deeds.

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

DATED: [__/__/____]

[____________________________________]
United States Bankruptcy Judge

MAINE PRACTICE NOTES

Opt-out — state exemptions only. Maine is an opt-out state under 14 M.R.S. § 4426 — the federal § 522(d) exemptions are unavailable. Maine debtors use the 14 M.R.S. § 4422 exemptions and may also claim federal nonbankruptcy exemptions (11 U.S.C. § 522(b)(3)(B)–(C)). The 730-day domicile rule (§ 522(b)(3)(A)) can require a recent arrival to use another state's exemptions — verify domicile.

Residence (homestead) — 14 M.R.S. § 4422(1). Standard exemption $80,000; $160,000 if a minor dependent resides with the Debtor (§ 4422(1)(A)) or if the Debtor or a dependent is age 60 or older or disabled (§ 4422(1)(B)). Joint-ownership formulas cap the exemption (e.g., the lesser of $80,000 or the fractional share × $160,000). These amounts last increased effective 2021/2024 and adjust on a three-year cycle — the next adjustment is April 1, 2027. Verify the current figures.

Two Maine-specific limits that drive § 522(f). (1) § 4422(1)(E) limits the residence exemption to the amount in effect on the date the lien was recorded — so when computing Line C of the impairment formula, use the residence-exemption amount as of the lien-recording date, which may be lower than the petition-date amount. (2) § 4422(1)(D) provides that the residence exemption does not apply to judgments based on torts involving other than ordinary negligence — if the underlying judgment is such a tort, the homestead is unavailable and homestead-based § 522(f) avoidance can fail. Both rules should be checked at the outset.

Other Maine exemptions. Motor vehicle $10,000 (§ 4422(2)); household furnishings/goods $500 per item (§ 4422(3)); jewelry $1,000 plus up to $4,000 for wedding/engagement rings (§ 4422(4)); tools of the trade $9,500 (§ 4422(5)); furnaces/stoves/fuel (§ 4422(6)); a wildcard and a residence-spillover provision (§ 4422(15), (16)). Verify current amounts.

Section 522(f)(1)(B) and household goods. A nonpossessory, nonpurchase-money security interest in the § 522(f)(1)(B) categories is avoidable to the extent it impairs the Maine household-goods/tools exemptions (§ 4422(3), (5)).

Section 522(f)(2)(A) mechanics. Add the lien to be avoided + all other liens + the exemption the debtor could claim (subject to the § 4422(1)(E) lien-date rule), compared to the value of the debtor's interest absent liens; the excess is the impairment, and the lien is avoided up to that amount. Address multiple judicial liens in inverse order of priority.

Local procedure. Maine is a single district — the District of Maine (Portland and Bangor divisions). A judgment becomes a lien on Maine real estate when recorded in the county registry of deeds; reference the registry, book, and page. The District of Maine commonly permits § 522(f) motions on an objection-deadline (negative-notice) basis; confirm the current Local Bankruptcy Rules, any required form, and the assigned judge's procedures. Serve the creditor under Fed. R. Bankr. P. 7004.

Unsettled / verify points. (1) Current § 4422(1) residence amounts and the § 4422(1)(E) lien-date limitation; (2) the § 4422(1)(D) tort exclusion's applicability to the underlying judgment; (3) current § 4422(2)–(16) personal-property amounts; (4) whether the court requires a noticed hearing or permits negative notice; (5) § 522(b)(3)(A) domicile look-back and § 522(p)/(q) caps where applicable.

SOURCES AND REFERENCES

• 11 U.S.C. § 522(f), (f)(2)(A) (lien avoidance; impairment formula); § 522(b) (election/opt-out).
• Fed. R. Bankr. P. 4003(d), 9014, 7004.
• 14 M.R.S. § 4426 (opt-out from federal exemptions).
• 14 M.R.S. § 4422(1) (residence — $80,000 / $160,000; § 4422(1)(D) tort exclusion; § 4422(1)(E) lien-date limit).
• 14 M.R.S. § 4422(2)–(6), (15), (16) (vehicle, household goods, jewelry, tools, furnaces/fuel, wildcard, residence spillover).
• 14 M.R.S. § 4422-A (joint debtors).
• United States Bankruptcy Court for the District of Maine (meb.uscourts.gov) — Local Bankruptcy Rules and forms.