If a user with lots of badges encircles (overlap) his whole avatar, then those badges won't be recognizable for other users, because those badges are covering each other.
Topic badges on the other hand can be place based on @MirHamid 's suggestion. Which i think is the perfect place for it. Or maybe on the corner right of that line instead of left corner?
Title badges can also be on top or below the avatar (ideally, under the avatar), without overlapping user's avatar.
Avatar is there for a reason and it's not a good idea to overly covered it with badges.