Maddox v. Southern Discount Co.

Southern Discount Company appeals an order of the district court affirming the decision of the bankruptcy court permitting the debtor to avoid a nonpossessory, nonpurchase-money security lien in household goods and furnishings. See 11 U.S.C. § 522(f)(2). The appellant maintains that the state law exemptions protected by § 522(f) are limited to the equity owned by the debtor in the property. Additionally, the company suggests that the Georgia legislature intended to “opt out” of the avoidance provisions contained in § 522(f). The district court carefully considered these same contentions and…