Senate Bill No. 642
(By Senator Rowe and Hunter)
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[Introduced February 18, 2002; referred to the Committee
on the Judiciary.]
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A BILL to amend and reenact section four, article ten, chapter
thirty-eight of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to exemptions of
property in bankruptcy generally; and increasing the amount of
certain exemptions.
Be it enacted by the Legislature of West Virginia:
That section four, article ten, 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 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 fifteen thirty
thousand dollars 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.
(b) The debtor's interest, not to exceed two five thousand
four hundred dollars in value, in one motor vehicle.
(c) The debtor's interest, not to exceed four five hundred
dollars 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 eight fifteen thousand dollars.
(d) The debtor's interest, not to exceed one thousand dollars
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 eight
hundred three thousand dollars 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 one three thousand
five hundred dollars 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 eight
fifteen thousand dollars 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 fifteen twenty-five thousand
dollars 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 any prepaid tuition or other
educational 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 monetary
amount of certain debtor property exemptions in bankruptcy
proceedings.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.