H. B. 2040
(By Delegate Fleischauer)
[Introduced February 14, 2001; referred to the
Committee on the Judiciary then Finance.]
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;
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, two thousand one, a homestead shall be exempt 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 does 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 two thousand one are
intended to clarify the intent of the Legislature in establishing
the exemption granted by the provisions of subsection(b) of this
section, and to increase the exemption effective the first day of
July, two thousand one, and to this end, it is the intent of the
Legislature that the provisions of this section 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 to $50,000 the homestead exemption
from attachment for debts 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.