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IN RE KRAJCI

Bankruptcy No. 80-00314G, Adversary No. 80-0072G.

7 B.R. 242 (1980)

In re Leonard J. KRAJCI and Renee M. Krajci, Debtors, Leonard J. KRAJCI and Renee M. Krajci, Plaintiffs, v. MT. VERNON CONSUMER DISCOUNT COMPANY, Defendant.

United States Bankruptcy Court, E.D. Pennsylvania.

November 26, 1980.

Attorney(s) appearing for the Case

Eric L. Frank, Bruce Fox, Philadelphia, Pa., for plaintiffs, Leonard J. Krajci and Renee M. Krajci.

Abe Lapowsky, Leo F. Doyle, Philadelphia, Pa., for defendant, Mt. Vernon Consumer Discount Co.

OPINION

EMIL F. GOLDHABER, Bankruptcy Judge:

The issue at bench is whether fraud can be raised as a defense in an action to avoid a lien under Section 522(f)(1) of the Bankruptcy Code. We conclude that it cannot.

The facts of the instant case are as follows:1 In August, 1978, Leonard and Renee Krajci ("the debtors") entered into a loan transaction whereby they became indebted to Mt. Vernon Consumer Discount Company (...

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