Filed: Nov. 26, 2018
Latest Update: Nov. 26, 2018
Summary: MEMORANDUM RE ORDER AVOIDING JUDICIAL LIEN [ECF No. 43] GREGORY R. SCHAAF , Bankruptcy Judge . This matter is before the Court on the Debtor's Motions to Avoid Liens pursuant to 11 U.S.C. 522(f)(1)(A). [ECF Nos. 35-37 ("Motions").] The Debtor seeks to avoid 3 judicial liens recorded by Asset Acceptance LLC and Portfolio Recovery Associates, LLC, as impairing his exemption pursuant to 11 U.S.C. 522(f). The pending Motions represent the Debtor's fourth attempt to avoid the judicial liens
Summary: MEMORANDUM RE ORDER AVOIDING JUDICIAL LIEN [ECF No. 43] GREGORY R. SCHAAF , Bankruptcy Judge . This matter is before the Court on the Debtor's Motions to Avoid Liens pursuant to 11 U.S.C. 522(f)(1)(A). [ECF Nos. 35-37 ("Motions").] The Debtor seeks to avoid 3 judicial liens recorded by Asset Acceptance LLC and Portfolio Recovery Associates, LLC, as impairing his exemption pursuant to 11 U.S.C. 522(f). The pending Motions represent the Debtor's fourth attempt to avoid the judicial liens...
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MEMORANDUM RE ORDER AVOIDING JUDICIAL LIEN [ECF No. 43]
GREGORY R. SCHAAF, Bankruptcy Judge.
This matter is before the Court on the Debtor's Motions to Avoid Liens pursuant to 11 U.S.C. § 522(f)(1)(A). [ECF Nos. 35-37 ("Motions").] The Debtor seeks to avoid 3 judicial liens recorded by Asset Acceptance LLC and Portfolio Recovery Associates, LLC, as impairing his exemption pursuant to 11 U.S.C. § 522(f).
The pending Motions represent the Debtor's fourth attempt to avoid the judicial liens. The prior history is set forth in more detail in an Order entered on October 24, 2018. [ECF No. 34.] The October 24 Order set the matter for hearing on November 20, 2018, to give the Court an opportunity to explain to counsel the deficiencies that prevent entry of an order granting the requested relief. Prior to the hearing, counsel filed the pending Motions. The docket reflects that no action would be taken pending the November 20 hearing. [ECF No. 38.]
Following the November 20 hearing, counsel submitted a new proposed order to correct the deficiencies. [ECF No. 43.] Unfortunately, the calculations in the most recent proposed order are not correct. Counsel's proposed order includes the following problems (highlighted in red):
ORDER
This matter is before the Court of the Debtor's Motion to Avoid Lien pursuant to 11 U.S.C. § 522(f)(1)(A). The Debtor represents that the following judicial liens impair one or more exemptions to which the Debtor would have been entitled to under 11 U.S.C. § 522(b) (listed in order of highest priority to lowest priority):
Name of Lienholder Collateral Location Book/Page Amount Owed
Asset Acceptance Real property Henry Book E26, Page 51 $7,901.871
LLC located at 255 County Book E23, Pages $1,237.77
Portfolio Recovery East Cross 957
Associates, LLC Main Street,
New Castle,
Kentucky
Asset Acceptance, Real property Henry Book E25, Page $1,128.12
LLC located at 255 County 423
East Cross
Main Street,
New Castle,
Kentucky
Portfolio Recovery Real Property Henry Book E23, Pages $1,237.77
Associates, LLC Located at County 957 $7,901.87
Asset Acceptance, 255 East Book E26, Page 51
LLC Cross Main
Street, New
Castle,
Kentucky
TOTAL: $10,267.76
The Debtor states the liens held by Asset Acceptance, LLC impairs the Debtor's exemption in the Real Property as follows:
A. Amount of lien to be avoided: $7,901.87
B. Amount of all other liens:
$44,365.89
C. Value of claimed exemption: $8,000.00
Statutory basis for exemption: 11 U.S.C. § 522(d)(1)
D. Total of adding lines A, B, and C: $60,276.76
E. Value of debtor(s)' interest in property:
$50,000.00
F. Subtract line E from line D:
$10,267.76
G. Extent of Impairment (choose one of the Line F is equal to or greater than line A, so
following): the entire lien is avoided.
The Debtor states the lien held by Asset Acceptance, LLC impairs the Debtor's exemption in the Real Property as follows:
A. Amount of lien to be avoided: $1,128.12
B. Amount of all other liens:
$51,139.642 $43,237.77
C. Value of claimed exemption: $8,000.00
Statutory basis for exemption: 11 U.S.C. § 522(d)(1)
D. Total of adding lines A, B, and C: $60,267.76 $52,365.89
E. Value of debtor(s)' interest in property:
$50,000.00
F. Subtract line E from line D:
$10,267.76 $2,365.89
G. Extent of Impairment (choose one of the Line F is equal to or greater than line A, so
following): the entire lien is avoided.
A. Amount of lien to be avoided: $1,237.77
B. Amount of all other liens:
$51,029.993 $42,000.00
C. Value of claimed exemption: $8,000.00
Statutory basis for exemption: 11 U.S.C. § 522(d)(1)
D. Total of adding lines A, B, and C: $60,267.76 $51,237.77
E. Value of debtor(s)' interest in property:
$50,000.00
F. Subtract line E from line D:
$10,267.76 $1,237.77
G. Extent of Impairment (choose one of the Line F is equal to or greater than line A, so
following): the entire lien is avoided.
This memorandum is intended as an educational tool. If the calculations are corrected as instructed, the liens are avoidable pursuant to § 522(f). Thus, the Court will enter a separate order with the correct calculations granting the relief requested. The Court highly encourages counsel to compare the highlighted areas noted above with the Order prepared and entered by the Court.
