House Study Bill 71 



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            JUDICIARY BILL BY
                                            CHAIRPERSON SWAIM)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to a debtor's exempt personal injury payments in
  2    state court debt collection and federal bankruptcy actions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1636HC 82
  5 rh/je/5

PAG LIN



  1  1    Section 1.  Section 627.6, subsection 15, Code 2007, is
  1  2 amended to read as follows:
  1  3    15.  The debtor's interest in payments reasonably necessary
  1  4 for the support of the debtor or the debtor's dependents to or
  1  5 for the benefit of the debtor or the debtor's dependents,
  1  6 including structured settlements, resulting from personal
  1  7 injury to the debtor or the debtor's dependents or the
  1  8 wrongful death of a decedent upon which the debtor or the
  1  9 debtor's dependents were dependent.
  1 10                           EXPLANATION
  1 11    This bill relates to a debtor's exempt personal injury
  1 12 payments in state court debt collection and federal bankruptcy
  1 13 actions.
  1 14    The bill provides that a debtor's interest in payments
  1 15 reasonably necessary for the support of the debtor or the
  1 16 debtor's dependents and devoted to or for the benefit of the
  1 17 debtor or the debtor's dependents, including structured
  1 18 settlements, which result from personal injury to the debtor
  1 19 or the debtor's dependents, shall be exempt from execution by
  1 20 creditors in state court debt collection and federal
  1 21 bankruptcy actions.  Current law allows such an exemption
  1 22 resulting only from the wrongful death of a decedent.
  1 23 LSB 1636HC 82
  1 24 rh:rj/je/5