Order Avoiding The Security Interest Of

ORDER AVOIDING THE SECURITY INTEREST OF. This form is used in bankruptcy court to avoid or partially avoid a nonpossessory, nonpurchase-money security interest that a creditor holds on a debtor's personal property. Such security interests can include items like household goods, tools of the trade, or health aids that the debtor did not purchase with funds from the creditor but on which the creditor has a lien. Under 11 U.S.C. § 522(f), if the security interest impairs the debtor's allowable exemptions, the debtor can seek to have it avoided, meaning the creditor’s lien is removed, either entirely or in part, to protect the debtor’s property. This order requires the creditor’s lien to have no effect on the property unless the case is dismissed, in which case the lien might be reinstated. The order also restricts recording until discharge, meaning the lien avoidance only becomes fully effective upon completion of the bankruptcy case. www.FormsWorkflow.com