Robert and Dawn Short (plaintiffs) bought furniture from Anderson Warehouse Furniture (Anderson) on credit, and the Shorts gave Anderson a security interest. Anderson assigned its interest to American General Finance, Inc. (American). The Shorts failed to make payments. Later, the Shorts consolidated the $2,880 owed with another loan and executed a new note. The disclosure statement indicated that American held a “continued purchase money interest” in the furniture. The Shorts made payments totaling $394.38 before seeking Chapter 7 bankruptcy. The Shorts sought to avoid American’s lien and exempt the furniture from the bankruptcy estate.