I never get tired of pimping Google's guava-libraries, which takes a lot of the pain out of... well, most things in Java.
How about:
for (String line : Files.readLines(new File("file.txt"), Charsets.UTF_8)) {
   // Do something
}
In the case where you have a large file, and want a line-by-line callback (rather than reading the whole thing into memory) you can use a LineProcessor, which adds a bit of boilerplate (due to the lack of closures... sigh) but still shields you from dealing with the reading itself, and all associated Exceptions:
int matching = Files.readLines(new File("file.txt"), Charsets.UTF_8, new LineProcessor<Integer>(){
  int count;
  Integer getResult() {return count;}
  boolean processLine(String line) {
     if (line.equals("foo")
         count++;
     return true;
  }
});
If you don't actually want a result back out of the processor, and you never abort early (the reason for the boolean return from processLine) you could then do something like:
class SimpleLineCallback extends LineProcessor<Void> {
    Void getResult{ return null; }
    boolean processLine(String line) {
       doProcess(line);
       return true;
    }
    abstract void doProcess(String line);
}
and then your code might be:
Files.readLines(new File("file.txt"), Charsets.UTF_8, new SimpleLineProcessor(){
  void doProcess(String line) {
     if (line.equals("foo");
         throw new FooException("File shouldn't contain 'foo'!");
  }
});
which is correspondingly cleaner.