LIEN AVOIDANCE

(a) General. The requirements of LBR 9013-1 through LBR 9013-4 apply to a motion to avoid a lien or other transfer of property pursuant to 11 U.S.C. § 522(f), except as provided by this rule. (1) A motion to avoid a lien or other transfer of property under 11 U.S.C. § 522(f) may be brought under either LBR 9013-1(d) or (o). (2) A motion to sell property free and clear of liens under 11 U.S.C. § 363(h) does not constitute a “proceeding to avoid a lien” within the meaning of this rule.

(b) Contents of Notice and Motion. (1) A creditor whose lien is to be avoided must be identified in the notice and motion. A separate notice and motion must be filed for each lien sought to be avoided. (2) If the motion seeks to avoid a lien on real property, the motion and proposed order must include the legal description of the real property.

74 LBR 4008-1 (c) Service. (1) The motion, notice, and supporting documents must be served on the holder of the lien to be avoided in the same manner as a summons and complaint under FRBP 7004. (2) The motion, notice, and supporting documents also must be served on any other holder of a lien or encumbrance against the subject property. (d) Evidence.

The motion must be accompanied by a declaration or other competent evidence establishing: (1) The balance remaining on the creditor’s loan; (2) The fair market value of the subject property; (3) The identity of any other holder of a lien encumbering the subject property and the amount due and owing on such lien; (4) The specific statutory authority for the claimed exemption; and (5) The value or amount claimed exempt.