IMPAIRMENT OF EXEMPTIONS.

SEC. 303. IMPAIRMENT OF EXEMPTIONS. Section 522(f) of title 11, United States Code, is amended— (1) in paragraph (2)— (A) by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively, and (B) by striking “(2)” and inserting “(B)”, (2) by redesignating paragraph (1) as subparagraph (A), (3) by inserting “(1)” before “Notwithstanding”, and (4) by adding at the end the following: “(2) (A) For the purposes of this subsection, a lien shall be considered to impair an exemption to the extent that the sum “(i) the lien; “(ii) all other liens on the property; and “(iii) the amount of the exemption that the debtor could claim if there were no hens on the property; exceeds the value that the debtor’s interest in the property would have in the absence of any hens. “(B) In the case of a property subject to more than 1 lien, a hen that has been avoided shall not be considered in making the calculation under subparagraph (A) with respect to other hens. “(C) This paragraph shall not apply with respect to a judgment arising out of a mortgage foreclosure.”.