IN THE UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF NORTH CAROLINA _________________ DIVISION IN RE: , Debtor . ) ) ) ) ) ) CASE NO. Chapter __ ORDER AVOIDING JUDICIAL LIEN OF ______________________________ This matter comes before the Court on a motion to avoid a judicial lien pursuant to 11 U.S.C. § 522(f) and Federal Rules of Bankruptcy Procedure 4003(d) and 9014. Having considered the motion and other matters of record in this case, the Court finds and concludes: 1. All parties in interest have received due notice of the motion and no party has timely objected to the relief requested in the motion. The Debtor exempted property described as _________________________, with a value of $___________, as of the petition date. Pursuant to (e.g., N.C.G.S. § 1C-1601(a)(1)), the Debtor claimed an exemption in the abovementioned property of $_________________. The abovementioned property is encumbered by (e.g., a first deed of trust) in favor of ____________________________________, which secures indebtedness with an unpaid balance of $_______ as of the petition date. The abovementioned property is also encumbered by (e.g., a second deed of trust) in favor of ___________________________, which secured indebtedness with an unpaid balance of $________, as of the petition date. __________________________ holds a judicial lien against the abovementioned property pursuant to a judgment dated __________________, and recorded in Judgment Book ___, page ___, in the ___________________ County Registry, in the amount of $_________, plus interest and attorney's fees of $_______. Because the total aggregate of the liens and the value of the exemption is $_______, which exceeds the value of Debtor's interest in the property by $_______, and because that sum is greater than or equal to the amount of the $______ judicial lien sought to be avoided, the judicial lien impairs an exemption pursuant to 11 U.S.C. § 522(f) and may be completely avoided pursuant to 11 U.S.C. § 522(f)(1). 2. 3. 4. 5. 6. OR American LegalNet, Inc. www.USCourtForms.com 6. Because the total aggregate of the liens and the value of the exemption is $______, which exceeds the value of Debtor's interest by $________, which is less than the amount of the judical lien sought to be avoided, such lien by be avoided pursuant to 11 U.S.C. § 522(f)(1) to the extent of only $______, and the rest of such judicial lien remains in effect. Therefore, it is [In Chapter 7 cases only] ORDERED that the judicial lien held by ___________________________, and recorded in Judgment Book __, page ___, in the _________________ County Registry be and hereby is AVOIDED AND CANCELLED as to the property described as ____________________, and said judicial lien shall have no further force or effect as to said real property. OR ORDERED that the judicial lien held by ___________________________, and recorded in Judgment Book __, page ___, in the _________________ County Registry be and hereby is AVOIDED AND CANCELLED to the extent that $_________ of said judgment shall have no further force and effect against the property described as __________________________________, with the balance thereof remaining as a lien against that property to the extent enforceable under state law. SO ORDERED this _____ day of ____________, 20__. ______________________________ United States Bankruptcy Judge [In Chapter 13 cases only] ORDERED that the judicial lien held by ___________________________, and recorded in Judgment Book __, page ___, in the _________________ County Registry be and hereby is AVOIDED as to the property described as ___________________________________ . It is FURTHER ORDERED that this Order is to be of no force and effect outside of this Chapter 13 bankruptcy proceeding unless, and until, the Debtor obtains a discharge. A copy of the Order of Discharge is to accompany any recordation of this Order. OR ORDERED that the judicial lien held by ___________________________, and recorded in Judgment Book __, page ___, in the _________________ County Registry be and hereby is AVOIDED IN PART to the extent that $_________ of said judgment shall have no further force and effect against the property described as ___________________________________________, with the balance thereof remaining as a lien against that property to the extent enforceable under state law. It is American LegalNet, Inc. www.USCourtForms.com FURTHER ORDERED that this Order is to be of no force and effect outside of this Chapter 13 bankruptcy proceeding unless, and until, the Debtor obtains a discharge. A copy of the Order of Discharge is to accompany any recordation of this Order. SO ORDERED this _____ day of ____________, ______. ______________________________ United States Bankruptcy Judge American LegalNet, Inc. www.USCourtForms.com