The Debtor seeks to avoid a lien as a preferential transfer under 11 U.S.C. § 547 and § 522(f)(1) because it was recorded within 90 days prior to the petition date. The Court found that a judicial lien qualifies as a preference but the Debtor can only avoid the lien to the extent that it impairs the Debtor's exemption in the property under Section 522(f)(1). A debtor may bring an action to avoid a transfer of property of the debtor, to the extent that the property is properly claimed exempt by the debtor, if (1) the transfer was involuntary; (2) the debtor did not conceal the property; (3) the trustee could avoid the transfer, but does not attempt to do so; and (4) the debtor has exempted the transferred property. See 11 U.S.C. § 522(g)(1) and (h). Applying Section 522(f)(2), the Court held that the judicial lien may only be partially avoided.
File:
Judge:
Date:
Thursday, November 3, 2005
Category:
Avoidance
Exemptions
Lien Avoidance
Preference
Chapter:
13