1. 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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