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