Sections

• Overview
• General changes affecting consumer chapter 7, 11 cases under the Bankruptcy Code
• 1) Time between discharges, multiple filings
• 2) Required production of income tax returns and other documents; case dismissal for non-production
• 3) Credit counseling an debtor education
• 4) Automatic Stay Provisions
• 5) Limiting definition of household goods concerning avoidance of liens
• 6) Non-Dischargeability
• 7) Two-year residency requirement for state or local exemption laws including homestead
• 8) Limits on state specific homestead exemptions, effective date
• 9) Limitation on new homestead valuation additions; homestead caps. Effects on debtors in Florida and other formerly unlimited homestead exemption states
• 10) Avoidance of transfers to asset protection trust
• 11) Exclusions from estate property
• 12) Effective date of new law
• Consumer cases under Chapter 7
• 12b) New § 707(b) — income means testing
• 13) Sanctions that can now be imposed on debtor's counsel
• 14) Support priority; dischargeability of marital property settlements
• 15) Reaffirmation Agreements
• 16) Redemption
• 17) Trustee compensation
• 18) Non-subordination of property tax liens to family support claims
• 19) Secured claims

5. Limiting definition of household goods concerning avoidance of liens

A new § 522(f) (4) limits the “household goods” as to which a nonpossessory, nonpurchase-money security interest can be avoided under § 521(f) (1) (B).

The new definition limits electronic equipment to one radio, one television, one VCR, and one personal computer with related equipment; it excludes (among other things) works of art not created by the debtor (or relative), jewelry worth more than $500 (except wedding rings), and motor vehicles. What this means is that the threat of repossession (a act that Congress was initially trying to discourage) now remains in force as repayment leverage for household goods not excluded as noted above.

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