Introduced Version
House Bill 2853 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 2853
(By Delegate Hunt (By request))
[Introduced March 6, 2013; referred to the
Committee on the Judiciary.]
A BILL to amend and reenact §38-10-4 of the Code of West Virginia,
1931, as amended, relating to increase the amount of certain
exemptions of property in bankruptcy proceedings.
Be it enacted by the Legislature of West Virginia:
That §38-10-4 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 10. FEDERAL TAX LIENS; ORDERS AND DECREES IN BANKRUPTCY.
§38-10-4. Exemptions of property in bankruptcy proceedings.
Pursuant to the provisions of 11 U.S.C. §522(b)(1), this state
specifically does not authorize debtors who are domiciled in this
state to exempt the property specified under the provisions of 11
U.S.C. §522(d).
Any person who files a petition under the federal bankruptcy
law may exempt from property of the estate in a bankruptcy proceeding the following property:
(a) The debtor's interest, not to exceed $25,000 $35,000 in
value, in real property or personal property that the debtor or a
dependent of the debtor uses as a residence, in a cooperative that
owns property that the debtor or a dependent of the debtor uses as
a residence or in a burial plot for the debtor or a dependent of
the debtor: Provided, That when the debtor is a physician licensed
to practice medicine in this state under article three or article
fourteen, chapter thirty of this code, and has commenced a
bankruptcy proceeding in part due to a verdict or judgment entered
in a medical professional liability action, if the physician has
current medical malpractice insurance in the amount of at least $1
million for each occurrence, the debtor physician's interest that
is exempt under this subsection may exceed $25,000 $35,000 in value
but may not exceed $250,000 per household.
(b) The debtor's interest, not to exceed $2,400 $5,000 in
value, in one motor vehicle.
(c) The debtor's interest, not to exceed $400 $600 in value in
any particular item, in household furnishings, household goods,
wearing apparel, appliances, books, animals, crops or musical
instruments that are held primarily for the personal, family or
household use of the debtor or a dependent of the debtor:
Provided, That the total amount of personal property exempted under
this subsection may not exceed $8,000 $12,000.
(d) The debtor's interest, not to exceed $1,000 in value, in
jewelry held primarily for the personal, family or household use of
the debtor or a dependent of the debtor.
(e) The debtor's interest, not to exceed in value $800 plus
any unused amount of the exemption provided under subsection (a) of
this section in any property.
(f) The debtor's interest, not to exceed $1,500 $3,000 in
value, in any implements, professional books or tools of the trade
of the debtor or the trade of a dependent of the debtor.
(g) Any unmeasured life insurance contract owned by the
debtor, other than a credit life insurance contract.
(h) The debtor's interest, not to exceed in value $8,000 less
any amount of property of the estate transferred in the manner
specified in 11 U.S.C. §542(d), in any accrued dividend or interest
under, or loan value of, any unmeasured life insurance contract
owned by the debtor under which the insured is the debtor or an
individual of whom the debtor is a dependent.
(I) Professionally prescribed health aids for the debtor or a
dependent of the debtor.
(j) The debtor's right to receive:
(1) A social security benefit, unemployment compensation or a
local public assistance benefit;
(2) A veterans' benefit;
(3) A disability, illness or unemployment benefit;
(4) Alimony, support or separate maintenance, to the extent
reasonably necessary for the support of the debtor and any
dependent of the debtor;
(5) A payment under a stock bonus, pension, profit sharing,
annuity or similar plan or contract on account of illness,
disability, death, age or length of service, to the extent
reasonably necessary for the support of the debtor and any
dependent of the debtor, and funds on deposit in an individual
retirement account (IRA), including a simplified employee pension
(SEP) regardless of the amount of funds, unless:
(A) The plan or contract was established by or under the
auspices of an insider that employed the debtor at the time the
debtor's rights under the plan or contract arose;
(B) The payment is on account of age or length of service;
(C) The plan or contract does not qualify under Section
401(a), 403(a), 403(b), 408 or 409 of the Internal Revenue Code of
1986; and
(D) With respect to an individual retirement account,
including a simplified employee pension, the amount is subject to
the excise tax on excess contributions under Section 4973 and/or
Section 4979 of the Internal Revenue Code of 1986, or any successor
provisions, regardless of whether the tax is paid.
(k) The debtor's right to receive or property that is
traceable to:
(1) An award under a crime victim's reparation law;
(2) A payment on account of the wrongful death of an
individual of whom the debtor was a dependent, to the extent
reasonably necessary for the support of the debtor and any
dependent of the debtor;
(3) A payment under a life insurance contract that insured the
life of an individual of whom the debtor was a dependent on the
date of the individual's death, to the extent reasonably necessary
for the support of the debtor and any dependent of the debtor;
(4) A payment, not to exceed $15,000 $25,000 on account of
personal bodily injury, not including pain and suffering or
compensation for actual pecuniary loss, of the debtor or an
individual of whom the debtor is a dependent;
(5) A payment in compensation of loss of future earnings of
the debtor or an individual of whom the debtor is or was a
dependent, to the extent reasonably necessary for the support of
the debtor and any dependent of the debtor;
(6) Payments made to the prepaid tuition trust fund or to the
savings plan trust fund, including earnings, in accordance with
article thirty, chapter eighteen of this code on behalf of any
beneficiary.
NOTE: The purpose of this bill is to increase the amount of
certain exemptions of property in bankruptcy proceedings.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.