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Bankruptcy and Divorce
Avoidance of Liens Security Debts Incurred in Divorce...
Judgment Liens Securing Support Awards
Judgment Liens Securing Support Awards
Key Points
The substance of 522(f)(1)(A), qualifying the phrase "a judicial lien" was added by the Bankruptcy Reform Act of 1994. As a result of this provision, a judicial lien securing a support obligation may never be avoided under 522(f)(1)(A). As discussed above, courts tend to interpret the term "support" quite broadly.
However, the bankruptcy court is required to look behind a label placed on an obligation to determine the true nature of the debt based on the intent of the parties at the time the obligation was created.
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Avoidance of Liens Security Debts Incurred in Divorce...
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