UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF KENTUCKY
ELAINE RUDY AND JONAS RUDY CASE NO. 92-60491
This matter is before the Court upon the Motion for Order Avoiding Lien on Exempt Property filed herein on October 27, 1992 by the Debtors. In that Motion, the Debtors seek to avoid the lien of Kentucky Finance Company on a 1970 New Yorker house trailer. The Response of Kentucky Finance, filed herein on October 29, 1992, indicates, and the Court believes, that the lien involved is not a judicial lien but a consensual lien. As such, the Court will treat the Motion of the Debtors herein as a Motion to Avoid a Lien pursuant to Bankruptcy Code'522(f)(2)(A) instead of a Motion under '522(f)(1). In the Debtors' schedules herein, it appears that the Debtors claim the house trailer exempt under Kentucky Revised Statute 427.060. That statute contains Kentucky's homestead exemption and exempts real or personal property that such Debtor or a dependent of the Debtor uses as a permanent residence in this state. As such, it clearly provides a $5,000 exemption for mobile homes used as a residence of Debtors in compliance with the terms of the statute.
The Debtors argue that the mobile home is personal property as described in 522(f)(2)(A) and cite in re Dipalma, 24 BR 385 (Bankruptcy, D.Mass. 1982) as authority. The Court finds that this statute should not be applied to exempt personal property which is used as the residence of the Debtors and where an exemption has been claimed pursuant to KRS 427.060 for such property. In re Coonse, 108 BR 661 (Bankruptcy, S.D.Ill. 1989).
An Order in conformity with this Memorandum Opinion will be entered separately.
Dated this ______ day of ______________, 1992.
BY THE COURT
Samuel F. Begley, Esq.
Ralph W. Hoskins, Esq.
James R. Westenhoefer, Esq.