In re Cleaver, 08-6052

Jun 11, 2009

OUTCOME: Reversed- Debtor could avoid the lien

In the United States Bankruptcy Appellate Panel for the 8th Circuit, No. 08-6052. The debtor owned a semi tractor and used it for his self employed work. Once he filed bankruptcy, a Motion to Avoid ... lien was filed to free the truck from a non purchase money security interest. The debtor argued that he was entitled to a "vehicle exemption" and that this vehicle was a tool of the trade. Federal law provides for lien avoidances on non purchase money liens under 11 USC 522(f). The Bankruptcy Court ruled against the debtor. The Debtor appealed