Order Avoiding Judicial Lien. In Chapter 7 bankruptcy case, pro se Debtors filed a motion to avoid a judicial lien. Under 11 U.S.C. § 522(f)(1)(A), the debtor can avoid a judicial lien on property to the extent the lien impairs an exemption the debtor is entitled to. A lien impairs the exemption when the sum of the lien, other liens on the property, and the amount of the exemption exceeds the market value of the property minus any liens. The Debtors and the Lien Creditor disputed the amount of a lien held by another creditor as well as the fair market value of the property. Rather than apply a prior listing price for the property, as the Lien Creditor has requested, the Court instead applied the Debtors’ opinion of the petition date value of both the property and the second lien. After adding the value of the exemption and both liens, the Court found that sum exceeded the market value of the property by $182,990. The Court voided the judicial lien on the property.
