S.F. 2054 Section 1. Section 561.16, Code 2026, is amended to read as 1 follows: 2 561.16 Exemption. 3 The homestead of every person , including a person who is 4 a debtor to whom the law of this state applies on the date 5 a petition in bankruptcy is filed, is exempt from judicial 6 sale where there is no special declaration of statute to the 7 contrary. Persons who reside together as a single household 8 unit are entitled to claim in the aggregate only one homestead 9 to be exempt from judicial sale. A single person may claim 10 only one homestead to be exempt from judicial sale. For 11 purposes of this section , “household unit” means all persons of 12 whatever ages, whether or not related, who habitually reside 13 together in the same household as a group. 14 Sec. 2. Section 627.6, unnumbered paragraph 1, Code 2026, 15 is amended to read as follows: 16 A debtor who is a resident of this state or to whom the law 17 of this state applies on the date a petition in bankruptcy is 18 filed may hold exempt from execution the following property: 19 Sec. 3. Section 627.6, subsections 1, 3, 5, 6, 9, 10, 11, 20 13, and 14, Code 2026, are amended to read as follows: 21 1. The debtor’s interest in: 22 a. Any wedding or engagement ring owned or received by 23 the debtor or the debtor’s dependents. However, any interest 24 acquired in one or more wedding or engagement rings owned or 25 received by the debtor or the debtor’s dependents after the 26 date of marriage and within two years of the date the execution 27 is issued or an exemption is claimed shall not exceed a value 28 equal to seven eleven thousand one hundred fifty dollars in the 29 aggregate minus the amount claimed by the debtor for any other 30 jewelry claimed in paragraph “b” . 31 b. All jewelry of the debtor and the debtor’s dependents 32 owned or received by the debtor or the debtor’s dependents, not 33 to exceed in value two three thousand one hundred seventy-five 34 dollars in the aggregate. 35 -1- LSB 5400XS (2) 91 lh/jh 1/ 7

S.F. 2054 3. Private libraries, family bibles, portraits, pictures 1 and paintings not to exceed in value one two thousand seven 2 hundred twenty-five dollars in the aggregate. 3 5. The debtor’s interest in all wearing apparel of the 4 debtor and the debtor’s dependents kept for actual use and the 5 trunks or other receptacles necessary for the wearing apparel, 6 musical instruments, household furnishings, and household goods 7 which include, but are not limited to, appliances, radios, 8 television sets, record or tape playing machines, compact 9 disc players, satellite dishes, cable television equipment, 10 computers, software, printers, digital video disc players, 11 video players, and cameras held primarily for the personal, 12 family, or household use of the debtor and the debtor’s 13 dependents, not to exceed in value seven eleven thousand one 14 hundred fifty dollars in the aggregate. 15 6. The interest of an individual in any accrued dividend 16 or interest, loan or cash surrender value of, or any other 17 interest in a life insurance policy owned by the individual 18 if the beneficiary of the policy is the individual’s spouse, 19 child, or dependent. However, the amount of the exemption 20 shall not exceed ten twenty-seven thousand two hundred 21 seventy-five dollars in the aggregate of any interest or value 22 in insurance acquired within two years of the date execution 23 is issued or exemptions are claimed, or for additions within 24 the same time period to a prior existing policy which additions 25 are in excess of the amount necessary to fund the amount of 26 face value coverage of the policies for the two-year period. 27 For purposes of this unnumbered paragraph, acquisitions shall 28 not include such interest in new policies used to replace prior 29 policies to the extent of any accrued dividend or interest, 30 loan or cash surrender value of, or any other interest in the 31 prior policies at the time of their cancellation. 32 a. In the absence of a written agreement or assignment to 33 the contrary, upon the death of the insured any benefit payable 34 to the spouse, child, or dependent of the individual under a 35 -2- LSB 5400XS (2) 91 lh/jh 2/ 7

S.F. 2054 life insurance policy shall inure to the separate use of the 1 beneficiary independently of the insured’s creditors. 2 b. A benefit or indemnity paid under an accident, health, or 3 disability insurance policy is exempt to the insured or in case 4 of the insured’s death to the spouse, child, or dependent of 5 the insured, from the insured’s debts. 6 c. In case of an insured’s death the avails of all 7 matured policies of life, accident, health, or disability 8 insurance payable to the surviving spouse, child, or dependent 9 are exempt from liability for all debts of the beneficiary 10 contracted prior to death of the insured, but the amount thus 11 exempted shall not exceed fifteen forty thousand nine hundred 12 twenty-five dollars in the aggregate. 13 9. The debtor’s interest in one motor vehicle, not to exceed 14 in value seven eleven thousand one hundred fifty dollars. 15 10. In the event of a bankruptcy proceeding, the debtor’s 16 interest in accrued wages and in state and federal tax refunds 17 as of the date of filing of the petition in bankruptcy, not 18 to exceed one three thousand six hundred twenty-five dollars 19 in the aggregate. This exemption is in addition to the 20 limitations contained in sections 642.21 and 537.5105 . 21 11. If the debtor is engaged in any profession or occupation 22 other than farming, the debtor’s interest in the proper 23 implements, professional books, or tools of the trade of the 24 debtor or a dependent of the debtor, not to exceed in value ten 25 twenty-eight thousand eight hundred dollars in the aggregate. 26 13. If the debtor is engaged in farming the agricultural 27 land upon the commencement of an action for the foreclosure of 28 a mortgage on the agricultural land or for the enforcement of 29 an obligation secured by a mortgage on the agricultural land, 30 if a deficiency judgment is issued against the debtor, and if 31 the debtor does not exercise the delay of the enforceability 32 of the deficiency judgment or general execution under section 33 654.6 in relation to the execution under which the exemption is 34 claimed, the disposable earnings of the debtor are exempt from 35 -3- LSB 5400XS (2) 91 lh/jh 3/ 7

S.F. 2054 garnishment to enforce the deficiency judgment after two years 1 from the entry of the deficiency judgment, sections 642.21 and 2 642.22 notwithstanding. However, earnings paid to the debtor 3 directly or indirectly by the debtor are not exempt. 4 14. The debtor’s interest, not to exceed one thousand 5 six hundred dollars in the aggregate, in any cash on hand, 6 bank deposits, credit union share drafts, or other deposits, 7 wherever situated, or in any other personal property whether 8 otherwise exempt or not under this chapter . 9 Sec. 4. Section 627.6, subsection 12, unnumbered paragraph 10 1, Code 2026, is amended to read as follows: 11 If the debtor is engaged in farming and does not exercise the 12 delay of the enforceability of a deficiency judgment or general 13 execution under section 654.6 in relation to the execution 14 under which the exemption is claimed , the debtor’s interest in 15 any combination of the following, not to exceed a value of ten 16 twenty-eight thousand eight hundred dollars in the aggregate: 17 Sec. 5. Section 627.6, subsection 15, paragraph a, 18 unnumbered paragraph 1, Code 2026, is amended to read as 19 follows: 20 The debtor’s interest, not to exceed five hundred one 21 thousand twenty-five dollars in the aggregate, in any 22 combination of the following property: 23 Sec. 6. NEW SECTION . 627.6B Exemption amount adjustments. 24 1. Beginning April 1, 2028, and every three years 25 thereafter, each exemption amount provided in section 627.6 26 shall be adjusted to reflect the percentage change in the 27 consumer price index for all urban consumers, published in the 28 federal register by the United States department of labor, 29 bureau of labor statistics, for the most recent three-year 30 period ending immediately before January 1 preceding such 31 April 1, and rounded to the nearest twenty-five dollars. The 32 exemption adjustment shall be subject to 11 U.S.C. §104. 33 2. Beginning March 1, 2028, and every three years 34 thereafter, the department of revenue shall publish the 35 -4- LSB 5400XS (2) 91 lh/jh 4/ 7

S.F. 2054 adjusted exemption amounts. 1 3. The department of revenue shall adopt rules pursuant to 2 chapter 17A to administer this section. 3 Sec. 7. Section 627.8, Code 2026, is amended to read as 4 follows: 5 627.8 Pension money. 6 All money received by any person, a resident of the state or 7 a debtor to whom the law of this state applies on the date a 8 petition in bankruptcy is filed , as a pension from the United 9 States government, whether the same shall be in the actual 10 possession of such pensioner, or deposited, loaned, or invested 11 by the pensioner, shall be exempt from execution , whether such 12 pensioner shall be the head of a family or not . 13 Sec. 8. Section 627.9, Code 2026, is amended to read as 14 follows: 15 627.9 Homestead bought with pension money. 16 The homestead of every such pensioner , whether the head of 17 a family or not, purchased and paid for with any such pension 18 money, or the proceeds or accumulations thereof, shall also 19 be exempt; and such exemption shall apply to debts of such 20 pensioner contracted prior to the purchase of the homestead. 21 Sec. 9. EFFECTIVE DATE. This Act, being deemed of immediate 22 importance, takes effect upon enactment. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill relates to bankruptcy and personal property 27 exemption amounts. 28 The bill expands eligibility for the homestead exemption 29 from judicial sale to include any debtor to whom the law of the 30 state applies on the date a petition in bankruptcy is filed. 31 The bill similarly expands eligibility for personal property 32 exemptions for a debtor to include a debtor to whom the law 33 of this state applies on the date a petition in bankruptcy is 34 filed. 35 -5- LSB 5400XS (2) 91 lh/jh 5/ 7

S.F. 2054 The bill adjusts the personal property exemption limits for 1 wedding or engagement rings, jewelry, private libraries, family 2 bibles, portraits, pictures, paintings, apparel, household 3 goods, life insurance policies, policies of life, accident, 4 health, or disability insurance, motor vehicles, state and 5 federal tax refunds, proper implements, professional books, 6 tools of the trade, cash, bank deposits, credit union share 7 drafts, implements and equipment of normal farming operation, 8 livestock and livestock feed, residential rental deposits, 9 residential utility deposits, and prepaid rent. 10 Under current law, if a deficiency judgment is issued 11 against a debtor engaged in farming, and if the debtor does not 12 delay the enforcement of the deficiency judgment or general 13 execution under which the exemption is claimed, the disposable 14 earnings of the debtor are exempt from garnishment. The bill 15 strikes the requirement that the debtor does not delay the 16 enforcement of the deficiency judgment or general execution to 17 qualify for the exemption. 18 Under current law, if a debtor is engaged in farming and 19 does not delay enforcement of a deficiency judgment or general 20 execution under which the exemption is claimed, the debtor may 21 exempt certain farming operation property. The bill strikes 22 the requirement that the debtor does not delay the enforcement 23 of the deficiency judgment or general execution to qualify for 24 the exemption. 25 Beginning April 1, 2028, and every three years thereafter, 26 each exemption amount provided in Code section 627.6 must be 27 adjusted to reflect the percentage change in the consumer price 28 index for all urban consumers for the most recent three-year 29 period and rounded to the nearest $25. Beginning March 1, 30 2028, and every three years thereafter, the department of 31 revenue shall publish the adjusted exemption amounts and adopt 32 rules to implement the exemption adjustment process. 33 Current law exempts moneys received by a resident as a 34 pension from the United States government from execution, 35 -6- LSB 5400XS (2) 91 lh/jh 6/ 7

S.F. 2054 regardless of whether the pensioner is a head of the family. 1 The bill expands eligibility for the exemption to include a 2 debtor to whom the law of this state applies on the date a 3 petition in bankruptcy is filed, and removes the language 4 clarifying whether the pensioner is the head of a family or 5 not. 6 The bill also strikes the clarifying language “whether the 7 pensioner is a head of a family or not” from the provision 8 exempting a homestead purchased with pension money. 9 The bill takes effect upon enactment. 10 -7- LSB 5400XS (2) 91 lh/jh 7/ 7