In re Ryan
In re Ryan
Opinion of the Court
OPINION
The issue at bench is whetheh a judicial lien and a nonpossessory, nonpurchase-mon-ey security interest in household goods, both of which arose prior to the enactment date of the Bankruptcy Code (“the Code”), may
The facts of the instant case are as follows:
On January 16, 1980, the debtors filed a petition for relief under chapter 7 of the Code and on January 30, 1981, they filed an application to avoid several liens on the property which they had claimed as exempt. Among the liens which the debtors sought to avoid were the three held by Provident: (1) the nonpossessory, nonpurchase-money security interest in household goods, (2) the judgment lien on the debtors’ real property and (3) the execution lien on the debtors’ personal property. Provident objected to the avoidance of those liens.
Provident admits that the above three liens fit within the provisions of § 522(f)
We conclude that the same analysis applies herein to § 522(f)(1) as well as § 522(f)(2) and that neither subsection is so grossly arbitrary and unreasonable as to be “incompatible with fundamental law.” Consequently, we conclude that Provident’s liens may be avoided by the debtors herein.
. This opinion constitutes the findings of fact and conclusions of law required by Rule 752 of the Rules of Bankruptcy Procedure.
. Section 522(f) states in relevant part:
(f) Notwithstanding any waiver of exemptions, the debtor may avoid the fixing of a 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 under subsection (b) of this section, if such lien is—
(1) a judicial lien; or
(2) a nonpossessory, nonpurchase-money security interest in any—
(A) household furnishings, household goods, wearing apparel, appliances, books, animals, crops, musical instruments, or jewelry that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor....
11 U.S.C. § 522(f).
. The enactment date of the Code was November 6, 1978. Provident’s liens were all created prior thereto.
. The Fifth Amendment to the Constitution provides that “No person.. . shall... be deprived of life, liberty or property without due process of law.” U.S.Const. Amend. V.
Reference
- Full Case Name
- In re Thomas J. RYAN, Ethel Ryan, Debtors
- Status
- Published