Impairs an exemption

{
  "id": "MLC-T-LAW-002506",
  "term": "Impairs an exemption",
  "field": "Law",
  "definition": "A bankruptcy concept describing a lien that, together with all other liens, leaves the debtor with less equity in exempt property than the exemption would protect. Under section 522(f) of the Bankruptcy Code, a debtor can avoid a judicial lien, or a nonpossessory, nonpurchase-money security interest in specified household goods and tools of the trade, to the extent it impairs an exemption. The statute measures impairment by adding the lien, all other liens, and the exemption amount and comparing the total with the value the property would have without liens.",
  "url": "https://mlchart.com/terminology/law/impairs-an-exemption/"
}