Chapter 7. When a security interest was given in personal property are any items exempt from creditors in spite of that fact?

Asked almost 2 years ago - Nashville, TN

The combined value of all my personal property is less than maximum allowed exemption. I entered into a “Promissory Note and Security Interest” agreement with a creditor which granted a security interest in some personal property items ( desktop computer, notebook computer, 2 monitors, telephone system, drill, watch, encyclopedia set, binoculars).

Attorney answers (3)

  1. Paula Brown Sinclair

    Contributor Level 20


    Lawyers agree

    Best Answer
    chosen by asker

    Answered . I respectfully disagree with Mr. Berkus. Under 11 USC 522(f) non-possessory non-purchase money liens on household goods (typical of finance company loans) ARE avoidable in bankruptcy. How much of the property itemized is considered household goods is a matter of state law. Because a motion with particular allegations is required, representation by experienced counsel is appropriate.

    Best wishes for a favorable outcome, and please remember to designate a best answer.

    This answer is offered as a public service for general information only and may not be relied upon as legal advice.
  2. J. Thomas Smith Ph.D.


    Contributor Level 20

    Answered . I agree with Attorney Sinclair.

    Law Offices of J Thomas Smith J.D., Ph.D 11500 Northwest Freeway, Suite 280 Houston, TX 77092 713-LAWYER-2 www.... more
  3. Matthew Scott Berkus

    Contributor Level 20

    Answered . When you voluntarily grant a security interest in an item, exemptions don't apply. However, very few creditors will actually try to enforce such a lien on personal property.

Related Topics


Bankruptcy is a legal way for people or businesses who are no longer capable of paying back their bills to clear these debts and start over.

Chapter 7 bankruptcy

Chapter 7 bankruptcy is a form of bankruptcy where your debts are canceled, but some of your assets are sold to pay off part of your debt.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.


Ask now

26,372 answers this week

3,051 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

26,372 answers this week

3,051 attorneys answering