Lumpkins v. Beneficial Finance Co. (In Re Lumpkins)

DECISION GRANTING DEBTORS’ COMPLAINT TO AVOID SECURITY INTEREST

ARTHUR N. VOTOLATO, Jr., Bankruptcy Judge.

The Debtors seek to avoid Beneficial Finance Co.’s non-possessory, nonpurchase-money security interest in their household goods under Bankruptcy Code § 522(f). 11 U.S.C. § 522(f). Beneficial objects, maintaining that § 522(f) was not intended to apply retroactively, but that even if it were, it would be violative of due process under the Fifth Amendment to the United States Constitution.

The facts are undisputed. On January 26, 1979, the Debtors borrowed $4,796.02 from Beneficial, which…