MVC Surcharges constitute a Statutory Lien for Bankruptcy Purposes – In re Schick

In re Schick, 418 F. 3rd 321 (3rd cir. 2005), decided on August 9th of this year holds that motor vehicle surcharges imposed by the New Jersey MVC constitute a statutory lien as opposed to a judicial lien. A judicial lien may be avoided by a debtor in bankruptcy to the extent that it impairs his homestead exemption under 11 U.S.C. 522(f) and 11 U.S.C. 522(d)(1). However, a statutory lien may not be so avoided by a debtor in bankruptcy.

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