In Re: Angie M. Garcia
Orange Country's Credit Union v. Garcia (In Re Garcia)
Opinion
Opinion
Silverman, J.
We hold today that a motor vehicle, even a Mercedes, may fall within California’s so-called “wildcard” or “grubstake” exemption. Cal.Civ.Proc.Code § 703.140(b)(5). We also hold that if an exempt vehicle is a tool of the debtor’s trade and is secured by a nonpossessory, nonpurehase-money lien, the debtor can avoid the lien pursuant to 11 U.S.C. § 522 (f)(1)(B). The district court so ruled and remanded the case to the bankruptcy court to determine whether the vehicle in question, a 2001 Mercedes 320E sedan, was in fact a tool of the debtor’s trade as a real estate agent, or just a sweet ride. The lien-holder appealed. We affirm.
I. FACTS
In November 2006, Angie Garcia, a real estate agent, borrowed $22,160 from Orange County’s Credit Union and used her Mercedes as collateral. The credit union perfected a nonpossessory, nonpur-chase-money lien on the vehicle.
Garcia filed for Chapter 7 bankruptcy and listed the outstanding balance of the loan as $12,715.50. She claimed that the car, valued at $5,350, was exempt from her bankruptcy estate under California Civil Procedure Code § 703.140(b)(5). That section allows a debtor to exempt up to $18,350 in “any property.” Garcia…