H. B. 2111
(By Delegates Fleischauer, Jenkins and Hunt)
[Introduced January 13, 1999; referred to the
Committee on the Judiciary.]
A BILL to amend and reenact section three, article nine, chapter
thirty-eight of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to homestead
exemptions; clarifying provisions establishing a limited
exemption from attachment for debts for hospital or medical
expenses incurred from a catastrophic illness or injury;
providing technical revisions; increasing the exemption;
removing requirement for the promulgation of legislative
rules; and providing for liberal construction in favor of
debtors.
Be it enacted by the Legislature of West Virginia:
That section three, article nine, chapter thirty-eight of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 9. HOMESTEAD EXEMPTIONS.
§38-9-3. Debts enforceable against homestead.
(a) As of the effective date of this article seventh day of
June, one thousand nine hundred seventy-four, a homestead shall
be exempt up to the value of five thousand dollars from all debts
and liabilities, except debts incurred for the purchase money
thereof of the homestead, or for the erection of permanent
improvements thereon on the homestead, and claims for taxes or
county or district or municipal levies due thereon on the
homestead. The exemption herein granted in this section by
operation of law shall not render the homestead exempt from liens
and all other debts and liabilities contracted and incurred prior
to the effective date of this article seventh day of June, one
thousand nine hundred seventy-four: Provided, That with respect
to a homestead exemption up to one thousand dollars perfected by
execution and recordation of a written instrument as required
under the former provisions of this article in effect prior to
the seventh day of June, one thousand nine hundred seventy-four,
such the exemption shall for all purposes continue to be governed
by such the former provisions of this article.
(b)(1) In addition to the exemption provided in subsection
(a) of this section, and subject to the provisions of section
eleven-c, article five, chapter nine of this code, effective the first day of July, one thousand nine hundred ninety-six, a
homestead shall be exempt up to the value of seven thousand five
hundred dollars from all debts and liabilities for hospital or
medical expenses incurred from a catastrophic illness or injury.
Effective the first day of July, one thousand nine hundred
ninety-nine, the exemption shall be increased up to the value
of fifty thousand dollars.
(2) For purposes of this section subsection, "catastrophic
illness or injury" means a medically verified illness or injury
for which any insurance or other applicable benefits have been
exhausted, and which incapacitates and creates a financial
hardship upon the debtor, his or her the debtor's spouse, or
sibling or other dependent, of the debtor who uses the homestead
as a principal home at the time the debt was incurred and for
which there is no insurance or for which any insurance or other
applicable benefit has been exhausted.
(3) The exemption provided by this section granted by the
provisions of this subsection shall expire upon the date of the
death of the debtor, the death of the debtor's spouse or the
death of a disabled dependent of the debtor who uses the
homestead as a principal home, whichever is the later.
(4) The exemption provided pursuant to granted by the
provisions of this subsection by operation of law shall not render the homestead exempt from liens and all or other debts and
liabilities for hospital or medical expenses contracted and
incurred prior to the first day of July, one thousand nine
hundred ninety-six.
The tax commissioner shall propose for promulgation
legislative rules, not inconsistent with this section, in
accordance with the provisions of article three, chapter
twenty-nine-a of this code, to establish the procedures for
exempting homesteads from debts and liabilities incurred from a
catastrophic illness or injury.
(c) The amendments to this section enacted during the
regular session of the Legislature in the year one thousand nine
hundred ninety-nine, are intended to clarify the intent of the
Legislature in establishing the exemption granted by the
provisions of subsection(b) of this section, to increase the
exemption effective the first day of July, one thousand nine
hundred ninety-nine, and to provide other technical revisions to
this section, and to this end, it is the intent of the
Legislature that the provisions of this section are to be
liberally construed in favor of a debtor claiming a homestead
exemption for debts incurred from a catastrophic illness or
injury.
NOTE: This bill increases the homestead exemption up to the
value of fifty thousand dollars effective July 1, 1999. The bill
also provides that a homestead is not exempt from liens or other
debts and liabilities for hospital or medical expenses incurred
from a catastrophic illness or injury.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.