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Motion to Avoid Judicial Lien

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    Motion to Avoid Judicial Lien

    A client/jdmt creditor asked a question re: a bankr notice he received. The FMV of the debtor's home is $350,000, subj to $300,000 first mtg. The home is owned jointly w/ wife, who is NOT filing. The debtor's individual exemption is $20,000. The debtor seeks to totally avoid the judicial lien ($50,000) based on math of prop value of $175,000 (1/2 FMV because debtor claims 1/2 interest in prop) minus full mtg of $300,000 minus exemption of $20,000, leaving no (i.e., negitive) equity. Is this proper or should the debtor be req'd to use the full FMV ($350k) - which, subtracting the mtg & exemption, leaves $30,000 of judicial lien in place??? Thanks.

    #2
    It is my understanding, when it comes to avoiding liens (judicial or otherwise) the equity exemption is irrelevant.

    Also, when a piece of property is liened...it is a attached to the PROPERTY, not simply the debtor's interest in that property.

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