security industrial bank argued october decided november provision bankruptcy reform act supp permits individual debtors bankruptcy proceedings avoid nonpossessory liens certain property including household furnishings appliances appellees loaned individual debtors money obtained perfected liens debtors household furnishings appliances act enacted subsequently debtors instituted separate bankruptcy proceedings act sections exempt household items property included within debtors estates debtors claimed exemptions relying avoid liens bankruptcy courts refused apply retroactively abrogate liens appeals consolidated appeals affirmed holding although act intended apply retrospectively thus designed invalidate liens acquired enactment date application violates takings clause fifth amendment held section intended applied retrospectively destroy property rights pp substantial doubt whether retroactive destruction appellee liens comport fifth amendment cardinal principle first determine whether construction statute fairly possible constitutional question may avoided warrants consideration whether matter statutory construction must necessarily applied retroactively pp bankruptcy law shall construed eliminate property rights existed law enacted absence explicit command congress light principle absence clear expression congress intent apply property rights established enactment date statute construed manner call upon resolve difficult sensitive questions arising guarantees takings clause pp rehnquist delivered opinion burger white powell stevens joined blackmun filed opinion concurring judgment brennan marshall joined post alan horowitz argued cause briefs solicitor general lee assistant attorney general mcgrath deputy solicitor general geller henry field argued cause appellees briefs appellee beneficial finance kansas abe fortas phil neal joseph berl michael katch filed brief appellees security industrial bank et al justice rehnquist delivered opinion case concerns effect supp permits individual debtors bankruptcy proceedings avoid liens certain property appeals consolidated seven appeals bankruptcy courts districts kansas colorado case debtor individual instituted bankruptcy proceedings bankruptcy reform act pub stat act became effective october case one appellees loaned debtor money obtained perfected lien debtor household furnishings appliances act enacted november none liens possessory none secured obligations included within personal property subject appellees liens household items exempt property included within debtors estates virtue subsections debtors claimed exemptions respective bankruptcy proceedings relying avoid liens section provides notwithstanding waiver exemptions debtor may avoid fixing lien interest debtor property extent lien impairs exemption debtor entitled subsection section lien nonpossessory security interest household furnishings household goods wearing apparel appliances books animals crops musical instruments jewelry held primarily personal family household use debtor dependent debtor implements professional books tools trade debtor trade dependent debtor professionally prescribed health aids debtor dependent debtor appeals consolidated cases affirmed judgments bankruptcy courts held act intended apply retrospectively thus designed invalidate liens acquired enactment date also held however application violates fifth amendment stated effects complete taking secured creditors property interests thus invalid louisville joint stock land bank radford appealed noted probable jurisdiction appellees course defend judgment appeals government argues length retrospective application liens violate fifth amendment contends enactment rational exercise congress bankruptcy power bankruptcy purposes property interests indistinguishable contractual interests particular interests insubstantial therefore destruction amount taking property requiring compensation decide constitutional question reached appeals address determine whether attack retrospective application statute raises substantial enough constitutional doubts warrant employment canon statutory construction referred infra may readily agreed rational exercise congress authority art cl authority regularly construed authorize retrospective impairment contractual obligations hanover national bank moyses agreement however obviate additional difficulty arises power sought used defeat traditional property interests bankruptcy power subject fifth amendment prohibition taking private property without compensation louisville joint stock land bank radford supra thus however rational exercise bankruptcy power may inquiry quite separate question whether enactment takes property within prohibition fifth amendment government apparently contends brief cases arnett kennedy goldberg kelly defined property purposes due process clause sufficiently broadly include rights common law deemed contractual traditional property rights entitled greater protection takings clause traditional contract rights argues bankruptcy principles support sharp distinction rights secured unsecured creditors brief however bankruptcy principles may speak question cases recognize common law contractual right secured creditor obtain repayment debt may quite different legal contemplation property right creditor collateral compare hanover national bank moyses supra louisville joint stock land bank radford supra kaiser aetna since governmental action result complete destruction property right secured party case fits awkwardly analytic framework employed penn central transportation new york city pruneyard shopping center robins governmental action affected bundle rights constitute property question government argues interest secured party involved insubstantial apparently part nonpossessory interest personal property bundle rights accrues secured party obviously smaller accrues owner fee simple government cites cases supporting proposition differences relegate secured party interest something less property decisions radford supra armstrong militate proposition radford held act stat violated takings clause bank held mortgage radford farm radford defaulted instituted bankruptcy proceedings act terms applied retrospectively permitted debtor purchase property less fair market value held statute void effected taking substantive rights specific property acquired bank prior enactment opinion justice brandeis stated fifth amendment commands however great nation need private property shall thus taken even wholly public use without compensation public interest requires permits taking property individual mortgagees order relieve necessities individual mortgagors resort must proceedings eminent domain taxation burden relief afforded public interest may borne public total destruction government value liens constitute compensable property every possible element fifth amendment taking mere consequential incidence valid regulatory measure government finally contends resale value household goods generally low creditors therefore view principal value security lever negotiate reaffirmation debt rather vehicle foreclosure property interests involved merit protection takings clause contention dismissed hand seems run counter state characterization interest property see supra reliance takings cases characterizations see kaiser aetna also least implications radford supra armstrong supra foregoing discussion satisfies us substantial doubt whether retroactive destruction appellees liens case comports fifth amendment consider whether matter statutory construction must necessarily applied manner consider statutory question cardinal principle first ascertain whether construction statute fairly possible constitutional question may avoided lorillard pons quoting crowell benson appeals thought must apply retroactively liens attached enactment date bankruptcy law applicable cases involving liens apparently thought apply liens came existence enactment date part act apply cases involving liens necessarily case liens course exist state law independently act although act general effective cases commenced effective date congress might intended provisions destroy previously vested property rights apply interests came effect enactment date provision remainder act affect enforceability liens still apply liens cases think analysis appeals adequately dispose question retrospective effect therefore pursue inquiry principle statutes operate prospectively judicial decisions operate retrospectively familiar every law student compare sands sutherland statutory construction ed linkletter walker often pointed first rule construction legislation must considered addressed future past rule expressed varying degrees strength always one import retrospective operation given statute interferes antecedent rights unless unequivocal inflexible import terms manifest intention legislature union pacific laramie stock yards citations omitted principle repeatedly applied bankruptcy statutes affecting property rights holt henley new statute granting bankruptcy trustees position lienholder priority sellers conditional sales contracts act june ch stat provision like read literally divest property interests created enacted statute like act applied bankruptcy cases instituted became effective nonetheless followed lead lower courts refusing infer retroactivity absent explicitly expressed intent congress arctic ice machine armstrong county trust see also schneider ed opinion unanimous justice holmes stated reasonable usual interpretation bankruptcy statutes confine effect far may property rights established passed see rasin government nonetheless contends bankruptcy statutes usually construed apply rights statement unobjectionable context traditional contract rights hanover national bank moyses none cases cited government extend property rights involved neither cases come attention casts doubt principle statutory construction deducible holt bankruptcy law shall construed eliminate property rights existed law enacted absence explicit command congress light principle legislative history act suggests congress may intended operate destroy property rights early version act contained explicit requirement provisions shall apply cases proceedings instituted effective date regardless date occurrence operative facts determining legal rights duties liabilities hereunder sess reprinted bankruptcy act revision hearings subcommittee civil constitutional rights house committee judiciary appendix provision may may deleted directly response comments witness william plumb effect retroactive invalidation liens may unconstitutional taking nonetheless congress elimination explicit command evidence intend depart usual principle construction see bradley richmond school board reluctant read statute limitation congress eliminated accordingly absence clear expression congress intent apply property rights established enactment date decline construe act manner turn call upon resolve difficult sensitive questions arising guarantees takings clause nlrb catholic bishop chicago judgment appeals must therefore affirmed footnotes subsections provide pertinent part individual debtor may exempt property estate property specified subsection section following property may exempted subsection section debtor interest exceed value particular item household furnishings household goods wearing apparel appliances books animals crops musical instruments held primarily personal family household use debtor dependent debtor debtor aggregate interest exceed value jewelry held primarily personal family household use debtor dependent debtor debtor aggregate interest exceed value implements professional books tools trade debtor trade dependent debtor professionally prescribed health aids debtor dependent debtor see schulte beneficial finance kansas hunter beneficial finance kansas bankruptcy district kansas noted retrospective application creates constitutional problems held applied prospectively jackson security industrial bank stevens liberty loan rodrock security industrial bank knezel security industrial bank bankruptcy district colorado concluded applied retrospectively violates due process clause fifth amendment hoops freedom finance bankruptcy district colorado concluded applied retrospectively violates substantive due process gifford en banc holds constitutionally applies liens created enactment date webber holds constitutionally applies liens created act became effective enactment date ashe holds permits avoidance certain judicial liens constitutionally applies cognovit note created enactment date appellee beneficial finance kansas asserts judgments affirmed act violates art iii constitution granting judicial power iii bankruptcy judges see northern pipeline construction marathon pipe line plurality opinion brennan rehnquist concurring judgment decision northern pipeline prospective stayed issuance mandate case december post decision affect judgment case oral argument government conceded liens issue case treated property state law tr oral arg kansas colorado adopted uniform commercial code although code priority among secured parties often affected possessory character security interests see characterizations affect nature security interest see defining purchase money security interest providing perfection security interests possession section act defines lien charge interest property secure payment debt performance obligation make distinctions based possessory nature lien act permitted farmer mortgagee assented purchase property value deferred payment plan mortgagee refused assent required stay proceedings five years time farmer retain possession paying reasonable rent five years property reappraised farmer still right purchase free clear appraised value regardless amount lien see radford given interest rate present value deferred payments much less value property uniform commercial code definition statutory liens nonpossessory liens personal property see supra transition provisions statute stat substance act pub title iv stat claridge apartments commissioner involved rights certain tax benefits property rights dickinson industrial site cowan dealt application new procedural rules bankruptcy proceeding pending new statute enacted allowing appeal circuit appeals rather district case eliminate property rights carpenter wabash involved provision giving personal injury judgments status operating expenses thus priority mortgages ongoing railroad reorganizations although statute may disadvantaged mortgages reducing amount cash available pay notes affect property right collateral securing mortgages mcfaddin considered curative statute providing methods valid mortgages created indian territory legal tender cases wall decided debts paid legal tender defined congress time payment without impairing obligation contracts liens issue case established enactment date occasion consider whether applied liens established congress passed act became effective aid construction meaning words used statute available certainly rule law forbids use however clear words may appear superficial examination obviously danger courts conclusion legislative purpose unconsciously influenced judges views factors considered enacting body lively appreciation danger best assurance escape threat hardly justifies acceptance literal interpretation dogma withholds courts available information reaching correct conclusion words general connotation appearing text statutes given wide meaning contrary settled policy excepting different purpose plainly shown american trucking footnotes omitted justice blackmun justice brennan justice marshall join concurring judgment case concerns bankruptcy act et seq supp particular exemption provisions act specifically issue effect certain exemption provisions upon nonpossessory obligations given debtors small loan companies enactment act purported liens apply generally specifically property kind described practicable matter nothing prevent debtor selling property replacing replacing chooses section first time established set federal exemptions individual debtors concededly section similar statutes enacted protect debtor essential needs enable fresh start economically section permits debtor avoid fixing nonpossessory security interest certain property subsection extend property otherwise exempt limited certain personal items household furnishings wearing apparel jewelry tools debtor trade professionally prescribed health aids naturally struggles question application new exemption provisions obligations created new act notes concern constitutional problems also greets obvious relief possibility construing act prospective operation quickly pursues latter route order avoid constitutional issue understand sympathize desire thus resolve case usually much easier construe statute avoid constitutional issue resolve constitutional issue course cases announced feasible preferred method see lorillard pons writing clean slate however pursue case principle think case deserve consideration greater depth see nothing statute concerned speaks hints prospective applicability compels find necessary reach constitutional issue resolve issue favor debtor creditor exemptions question limited kinds property values amount loaned little relationship value property asserted lien interests come close contracts adhesion repossessions small loan companies kind situation rare purpose statute salutary give debtor fresh start minimum necessities creditor abuse congress merely adjusted priorities taken government use public use exemption provisions question affect remedy debt security interest seems little direct value weight right appears useful mainly convenient tool threaten debtor reaffirm underlying obligation statute essentially economic regulation insubstantial element precedent favorable debtor found cases penn central transp new york city pruneyard shopping center robins writing clean slate seems case holt henley precisely point unless chooses overrule must control present case holt eventual bankrupt signed agreement installation automatic sprinkler system property eventual bankrupt agreement specified system remain holt property paid right enter remove upon failure pay agreed thereafter also mortgage deed executed covering plant acquired placed upon said premises continuance trust section act june ch stat amended bankruptcy act give trustee bankruptcy property coming custody bankruptcy rights creditor holding lien upon holt debtor bankruptcy mortgagees claimed sprinkler system justice holmes writing unanimous observed amendment holt better title trustees got opinion act construed impair went need consider whether far event constitutional power congress limited enough reasonable usual interpretation statutes confine effect far may property rights established passed familiar natural mode interpretation opinion holt title affected enactment later date conditional sale opposite construction simply extend remedy impute act congress intent take away rights lawfully retained unimpeachable moment took start holt henley thus also involved agreement subsequent change bankruptcy act preservation right see way distinguish case one affirm judgment appeals simply compelling authority holt henley see also rasin much prefer avoid way dicta enunciates respect takings