This post is about the basics of § 522(f) lien avoidances in chapter 13 cases – not the mathematical “how-to,” but the types of liens that can be avoided and the importance of claiming exemptions.
This post includes a little bit of information on several topics:
– last week’s increase in the prime rate of interest;
– bar dates in cases that convert to chapter 13;
– estimating trustee’s fees in the plan;
– problems with 522(f) lien avoidance calculations in the plan.
There is a difference between avoiding a lien under section 522(f) and treating a secured claim as wholly unsecured based on the value of the collateral. The latter is colloquially referred to as lien-stripping, but often it is erroneously considered a lien avoidance action, which causes confusion as to how the claim is to be treated in the plan. Do you know the difference?