Matter of Kruse

MEMORANDUM

JOHN C. MINAHAN, Jr., Bankruptcy Judge.

In this case the debtors seek to avoid a lien in household goods under 11 U.S.C. Section 522(f). Before the court is debtors’ Motion to Avoid the Fixing of a Lien (Fil. # 5) and the Resistance thereto (Fil. # 12) by Beneficial Nebraska, Inc. I conclude that debtors’ motion should be granted in part.

The facts are not controverted. The lien of Beneficial was originally a purchase money security interest and therefore not avoidable under Section 522(f). Debtors assert that the purchase money character of the original lien was lost because the…