House File 2739 - Introduced
HOUSE FILE
BY COMMITTEE ON JUDICIARY
(SUCCESSOR TO HSB 503)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to exemptions for certain personal property from
2 execution by creditors in state court debt collection and
3 federal bankruptcy actions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 627.6, subsections 1, 5, 9, and 13,
1 2 Code 2005, are amended to read as follows:
1 3 1. All wearing apparel of the debtor and the debtor's
1 4 dependents kept for actual use and the trunks or other
1 5 receptacles necessary for the wearing apparel, not to exceed
1 6 in value one thousand dollars in the aggregate. In addition,
1 7 the The debtor's interest in:
1 8 a. any Any wedding or engagement ring owned and or
1 9 received by the debtor or the debtor's dependents on or before
1 10 the date of marriage. However, any interest acquired in one
1 11 or more wedding or engagement rings owned or received by the
1 12 debtor or the debtor's dependents after the date of marriage
1 13 and within two years of the date the execution is issued or an
1 14 exemption is claimed shall not exceed a value equal to seven
1 15 thousand dollars in the aggregate minus the amount claimed by
1 16 the debtor for any other jewelry claimed in paragraph "b".
1 17 b. All jewelry of the debtor and the debtor's dependents
1 18 owned or received by the debtor or the debtor's dependents,
1 19 not to exceed in value two thousand dollars in the aggregate.
1 20 5. The debtor's interest in all wearing apparel of the
1 21 debtor and the debtor's dependents kept for actual use and the
1 22 trunks or other receptacles necessary for the wearing apparel,
1 23 musical instruments, household furnishings, and household
1 24 goods, and which include but are not limited to appliances,
1 25 radios, television sets, record or tape playing machines,
1 26 compact disc players, satellite dishes, cable television
1 27 equipment, computers, software, printers, digital video disc
1 28 players, video players, and cameras held primarily for the
1 29 personal, family, or household use of the debtor or a
1 30 dependent of the debtor and the debtor's dependents, not to
1 31 exceed in value two seven thousand dollars in the aggregate.
1 32 9. Any combination of the following, not to exceed a value
1 33 of five thousand dollars in the aggregate The debtor's
1 34 interest in the following:
1 35 a. Musical instruments, not including radios, television
2 1 sets, or record or tape playing machines, held primarily for
2 2 the personal, family, or household use of the debtor or a
2 3 dependent of the debtor.
2 4 b. One motor vehicle, not to exceed in value seven
2 5 thousand dollars in the aggregate.
2 6 c. b. In the event of a bankruptcy proceeding, the
2 7 debtor's interest in accrued wages and in state and federal
2 8 tax refunds as of the date of filing of the petition in
2 9 bankruptcy, not to exceed one thousand dollars in the
2 10 aggregate. This exemption is in addition to the limitations
2 11 contained in sections 642.21 and 537.5105.
2 12 13. The debtor's interest, not to exceed one hundred
2 13 thousand dollars in the aggregate, in any cash on hand, bank
2 14 deposits, credit union share drafts, or other deposits,
2 15 wherever situated, or other personal property not otherwise
2 16 specifically provided for in this chapter.
2 17 Sec. 2. Section 627.6, Code 2005, is amended by adding the
2 18 following new subsection:
2 19 NEW SUBSECTION. 15. The debtor's interest in the
2 20 following payments reasonably necessary for the support of the
2 21 debtor or the debtor's dependents:
2 22 a. Payments to or for the benefit of the debtor or the
2 23 debtor's dependents, including structured settlements,
2 24 resulting from the wrongful death of a decedent upon which the
2 25 debtor or the debtor's dependents were dependent.
2 26 b. Payments to or for the benefit of the debtor or the
2 27 debtor's dependents, including structured settlements,
2 28 resulting from bodily injuries to the debtor or the debtor's
2 29 dependents. Such payments shall include past and future
2 30 medical expenses, past and future earnings, and past and
2 31 future loss of bodily functions. Such payments shall not
2 32 include payments for pain and suffering, emotional distress,
2 33 and punitive damages or damages resulting from emotional
2 34 distress, sexual harassment, or employment discrimination.
2 35 EXPLANATION
3 1 This bill relates to exemptions for certain personal
3 2 property from execution by creditors in state court debt
3 3 collection and federal bankruptcy actions.
3 4 The bill provides that any exempt wedding or engagement
3 5 rings owned or received by a debtor or a debtor's dependents
3 6 after marriage but within two years of the date execution is
3 7 issued or an exemption is claimed shall not exceed a value of
3 8 $7,000 in the aggregate minus up to $2,000 for any other
3 9 jewelry claimed by the debtor or the debtor's dependents. The
3 10 current unlimited exemption for any wedding or engagement ring
3 11 owned or received by a debtor and a debtor's dependents prior
3 12 to or on the date of marriage remains intact.
3 13 The bill specifies that the debtor and the debtor's
3 14 dependents' interest in wearing apparel and household goods,
3 15 including but not limited to radios, television sets, record
3 16 or tape playing machines, compact disc players, satellite
3 17 dishes, cable television equipment, computers, software,
3 18 printers, digital video disc players, video players, and
3 19 cameras held primarily for personal, family, and household use
3 20 of the debtor and the debtor's dependents shall not exceed
3 21 $7,000 in the aggregate. Current law separately limits the
3 22 wearing apparel exemption to $1,000 and household goods
3 23 exemption to $2,000.
3 24 The bill allows a debtor to claim an exemption on a motor
3 25 vehicle not to exceed a value of $7,000 in the aggregate.
3 26 Current law places no limitation on such an exemption.
3 27 The bill increases the amount of the debtor's interest in
3 28 any cash on hand, bank deposits, credit union share drafts, or
3 29 other deposits or other personal property from $100 to $1,000.
3 30 The bill creates a new exemption relating to a debtor's
3 31 interest in support payments to include payments to or for the
3 32 benefit of the debtor or the debtor's dependents, including
3 33 structured settlements, resulting from the wrongful death of a
3 34 decedent upon which the debtor or the debtor's dependents were
3 35 dependent, and payments to or for the benefit of the debtor or
4 1 the debtor's dependents, including structured settlements,
4 2 resulting from bodily injuries to the debtor or the debtor's
4 3 dependents, including past and future medical expenses, past
4 4 and future earnings, and past and future loss of bodily
4 5 functions. Such payments shall not include payments for pain
4 6 and suffering, emotional distress, and punitive damages or
4 7 damages resulting from emotional distress, sexual harassment,
4 8 or employment discrimination.
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