Case Summary:
State of Wisconsin may not effectively "opt out"  of the federal lien avoidance provision by defining its exemptions in such a way so as to exclude encumbered property.

Proper inquiry under 11 U.S.C. § 522(f) is to inquire whether the debtor would be entitled to a particular exemption under state law but for the existence of a lien.  Wisconsin exemption laws can be reconciled with the lien-avoidance provisions of the bankruptcy code; federal law takes precedence over state law in cases involving those lien-avoidance provisions.

Statue/Rule References:
11 U.S.C. § 522(f) -- Lien Avoidance

Key Terms:
Lien Avoidance