LBR 4003-2. LIEN AVOIDANCE
LBR 4003-2. 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(a) or LBR 9013-1(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.
(1) The creditor whose lien is to be avoided must be identified in the title or caption
of the notice and motion (e.g., Motion to Avoid Lien of XYZ Co. under 11 U.S.C.
§ 522(f)). The notice and motion must contain a single caption and be filed in the
underlying bankruptcy case. A double caption must not be used nor will a separate
reference number be assigned.
(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.
(1) The motion, notice, and supporting papers 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 papers 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.