Skip to main content

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

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

Posted

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.

Mark as helpful

2 lawyers agree

5 comments

Matthew Scott Berkus

Matthew Scott Berkus

Posted

Thank you Paula, it was a little late, I didn't quite read the question as a non-purchase money question.

Asker

Posted

Am I able to make those particular allegations in my "Statement of Intention", or must I file a separate motion, or both. Are allegations of fact sufficient or must I show cause as well?

Matthew Scott Berkus

Matthew Scott Berkus

Posted

Separate Motion called a 522(f) motion. Your court might have a standard form for it, but generally, courts don't provide a standard form for motions. Good luck.

Paula Brown Sinclair

Paula Brown Sinclair

Posted

I've never seen a pro se debtor successfully navigate this procedure. Maybe an experienced practitioner will provide limited services for this issue (if allowed by the local court-- ours would).

Asker

Posted

I greatly appreciate all of your responses and comments.

Posted

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.

Mark as helpful

1 comment

Asker

Posted

I greatly appreciate all of your responses and comments.

Posted

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.MyImmigrationLawyer.info NOTE: Responses are for the education of the community at large and is not intended to be "legal advice." No attorney-client relationship is established by responses or comments.

Mark as helpful

Bankruptcy and debt topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics