DMV Surcharge Not Subject to Discharge; in Re Schick 418 F. 3d. 321 (3rd Cir. 2005)

The circuit panel considers whether, under the Bankruptcy Code, a lien held by the N.J. Motor Vehicles Commission for unpaid motor vehicle surcharges and interest constitutes a judicial lien -- which may be avoided by the debtor to the extent that it impairs her entitlement to a homestead exemption -- or a statutory lien, which may not be avoided. Noting the split among the district courts on this issue, the panel holds that the lien is statutory, and affirms the decision of the District Court in this case.