In Re Audey

MEMORANDUM OPINION

JOSEPH L. COSETTI, Chief Judge.

This dispute involves avoidance of a lien under 11 U.S.C. § 522(f) and determination of secured value under 11 U.S.C. § 506(a). The IRS raises the application of case law In re Simonson, 758 F.2d 103 (3d Cir.1985), as a defense to this lien avoidance action.

Frequently, the Bankruptcy Court is confronted by a fact situation in which judicial liens, as a matter of priority, are sandwiched between or are senior to mortgages. Although Section 522(f) permits judicial liens to be avoided, mortgages may not be avoided by § 522(f). This Court addressed…