Related to bankruptcy and personal property exemption amounts and including effective date provisions

This bill relates to bankruptcy and personal property exemption amounts. The bill expands eligibility for the homestead exemption from judicial sale to include any debtor to whom the law of the state applies on the date a petition in bankruptcy is filed. The bill similarly expands eligibility for personal property exemptions for a debtor to include a debtor to whom the law of this state applies on the date a petition in bankruptcy is filed. The bill adjusts the personal property exemption limits for wedding or engagement rings, jewelry, private libraries, family bibles, portraits, pictures, paintings, apparel, household goods, life insurance policies, policies of life, accident, health, or disability insurance, motor vehicles, state and federal tax refunds, proper implements, professional books, tools of the trade, cash, bank deposits, credit union share drafts, implements and equipment of normal farming operation, livestock and livestock feed, residential rental deposits, residential utility deposits, and prepaid rent. Under current law, if a deficiency judgment is issued against a debtor engaged in farming, and if the debtor does not delay the enforcement of the deficiency judgment or general execution under which the exemption is claimed, the disposable earnings of the debtor are exempt from garnishment. The bill strikes the requirement that the debtor does not delay the enforcement of the deficiency judgment or general execution to qualify for the exemption. Under current law, if a debtor is engaged in farming and does not delay enforcement of a deficiency judgment or general execution under which the exemption is claimed, the debtor may exempt certain farming operation property. The bill strikes the requirement that the debtor does not delay the enforcement of the deficiency judgment or general execution to qualify for the exemption.6 must be adjusted to reflect the percentage change in the consumer price index for all urban consumers for the most recent three-year period and rounded to the nearest $25. Beginning March 1, 2028, and every three years thereafter, the department of revenue shall publish the adjusted exemption amounts and adopt rules to implement the exemption adjustment process. Current law exempts moneys received by a resident as a pension from the United States government from execution, regardless of whether the pensioner is a head of the family. The bill expands eligibility for the exemption to include a debtor to whom the law of this state applies on the date a petition in bankruptcy is filed, and removes the language clarifying whether the pensioner is the head of a family or not. The bill also strikes the clarifying language “whether the pensioner is a head of a family or not” from the provision exempting a homestead purchased with pension money. The bill takes effect upon enactment.