Read the full stored bill text
Senate
File
2054
-
Introduced
SENATE
FILE
2054
BY
SWEENEY
A
BILL
FOR
An
Act
related
to
bankruptcy
and
personal
property
exemption
1
amounts
and
including
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
561.16,
Code
2026,
is
amended
to
read
as
1
follows:
2
561.16
Exemption.
3
The
homestead
of
every
person
,
including
a
person
who
is
4
a
debtor
to
whom
the
law
of
this
state
applies
on
the
date
5
a
petition
in
bankruptcy
is
filed,
is
exempt
from
judicial
6
sale
where
there
is
no
special
declaration
of
statute
to
the
7
contrary.
Persons
who
reside
together
as
a
single
household
8
unit
are
entitled
to
claim
in
the
aggregate
only
one
homestead
9
to
be
exempt
from
judicial
sale.
A
single
person
may
claim
10
only
one
homestead
to
be
exempt
from
judicial
sale.
For
11
purposes
of
this
section
,
“household
unit”
means
all
persons
of
12
whatever
ages,
whether
or
not
related,
who
habitually
reside
13
together
in
the
same
household
as
a
group.
14
Sec.
2.
Section
627.6,
unnumbered
paragraph
1,
Code
2026,
15
is
amended
to
read
as
follows:
16
A
debtor
who
is
a
resident
of
this
state
or
to
whom
the
law
17
of
this
state
applies
on
the
date
a
petition
in
bankruptcy
is
18
filed
may
hold
exempt
from
execution
the
following
property:
19
Sec.
3.
Section
627.6,
subsections
1,
3,
5,
6,
9,
10,
11,
20
13,
and
14,
Code
2026,
are
amended
to
read
as
follows:
21
1.
The
debtor’s
interest
in:
22
a.
Any
wedding
or
engagement
ring
owned
or
received
by
23
the
debtor
or
the
debtor’s
dependents.
However,
any
interest
24
acquired
in
one
or
more
wedding
or
engagement
rings
owned
or
25
received
by
the
debtor
or
the
debtor’s
dependents
after
the
26
date
of
marriage
and
within
two
years
of
the
date
the
execution
27
is
issued
or
an
exemption
is
claimed
shall
not
exceed
a
value
28
equal
to
seven
eleven
thousand
one
hundred
fifty
dollars
in
the
29
aggregate
minus
the
amount
claimed
by
the
debtor
for
any
other
30
jewelry
claimed
in
paragraph
“b”
.
31
b.
All
jewelry
of
the
debtor
and
the
debtor’s
dependents
32
owned
or
received
by
the
debtor
or
the
debtor’s
dependents,
not
33
to
exceed
in
value
two
three
thousand
one
hundred
seventy-five
34
dollars
in
the
aggregate.
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3.
Private
libraries,
family
bibles,
portraits,
pictures
1
and
paintings
not
to
exceed
in
value
one
two
thousand
seven
2
hundred
twenty-five
dollars
in
the
aggregate.
3
5.
The
debtor’s
interest
in
all
wearing
apparel
of
the
4
debtor
and
the
debtor’s
dependents
kept
for
actual
use
and
the
5
trunks
or
other
receptacles
necessary
for
the
wearing
apparel,
6
musical
instruments,
household
furnishings,
and
household
goods
7
which
include,
but
are
not
limited
to,
appliances,
radios,
8
television
sets,
record
or
tape
playing
machines,
compact
9
disc
players,
satellite
dishes,
cable
television
equipment,
10
computers,
software,
printers,
digital
video
disc
players,
11
video
players,
and
cameras
held
primarily
for
the
personal,
12
family,
or
household
use
of
the
debtor
and
the
debtor’s
13
dependents,
not
to
exceed
in
value
seven
eleven
thousand
one
14
hundred
fifty
dollars
in
the
aggregate.
15
6.
The
interest
of
an
individual
in
any
accrued
dividend
16
or
interest,
loan
or
cash
surrender
value
of,
or
any
other
17
interest
in
a
life
insurance
policy
owned
by
the
individual
18
if
the
beneficiary
of
the
policy
is
the
individual’s
spouse,
19
child,
or
dependent.
However,
the
amount
of
the
exemption
20
shall
not
exceed
ten
twenty-seven
thousand
two
hundred
21
seventy-five
dollars
in
the
aggregate
of
any
interest
or
value
22
in
insurance
acquired
within
two
years
of
the
date
execution
23
is
issued
or
exemptions
are
claimed,
or
for
additions
within
24
the
same
time
period
to
a
prior
existing
policy
which
additions
25
are
in
excess
of
the
amount
necessary
to
fund
the
amount
of
26
face
value
coverage
of
the
policies
for
the
two-year
period.
27
For
purposes
of
this
unnumbered
paragraph,
acquisitions
shall
28
not
include
such
interest
in
new
policies
used
to
replace
prior
29
policies
to
the
extent
of
any
accrued
dividend
or
interest,
30
loan
or
cash
surrender
value
of,
or
any
other
interest
in
the
31
prior
policies
at
the
time
of
their
cancellation.
32
a.
In
the
absence
of
a
written
agreement
or
assignment
to
33
the
contrary,
upon
the
death
of
the
insured
any
benefit
payable
34
to
the
spouse,
child,
or
dependent
of
the
individual
under
a
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life
insurance
policy
shall
inure
to
the
separate
use
of
the
1
beneficiary
independently
of
the
insured’s
creditors.
2
b.
A
benefit
or
indemnity
paid
under
an
accident,
health,
or
3
disability
insurance
policy
is
exempt
to
the
insured
or
in
case
4
of
the
insured’s
death
to
the
spouse,
child,
or
dependent
of
5
the
insured,
from
the
insured’s
debts.
6
c.
In
case
of
an
insured’s
death
the
avails
of
all
7
matured
policies
of
life,
accident,
health,
or
disability
8
insurance
payable
to
the
surviving
spouse,
child,
or
dependent
9
are
exempt
from
liability
for
all
debts
of
the
beneficiary
10
contracted
prior
to
death
of
the
insured,
but
the
amount
thus
11
exempted
shall
not
exceed
fifteen
forty
thousand
nine
hundred
12
twenty-five
dollars
in
the
aggregate.
13
9.
The
debtor’s
interest
in
one
motor
vehicle,
not
to
exceed
14
in
value
seven
eleven
thousand
one
hundred
fifty
dollars.
15
10.
In
the
event
of
a
bankruptcy
proceeding,
the
debtor’s
16
interest
in
accrued
wages
and
in
state
and
federal
tax
refunds
17
as
of
the
date
of
filing
of
the
petition
in
bankruptcy,
not
18
to
exceed
one
three
thousand
six
hundred
twenty-five
dollars
19
in
the
aggregate.
This
exemption
is
in
addition
to
the
20
limitations
contained
in
sections
642.21
and
537.5105
.
21
11.
If
the
debtor
is
engaged
in
any
profession
or
occupation
22
other
than
farming,
the
debtor’s
interest
in
the
proper
23
implements,
professional
books,
or
tools
of
the
trade
of
the
24
debtor
or
a
dependent
of
the
debtor,
not
to
exceed
in
value
ten
25
twenty-eight
thousand
eight
hundred
dollars
in
the
aggregate.
26
13.
If
the
debtor
is
engaged
in
farming
the
agricultural
27
land
upon
the
commencement
of
an
action
for
the
foreclosure
of
28
a
mortgage
on
the
agricultural
land
or
for
the
enforcement
of
29
an
obligation
secured
by
a
mortgage
on
the
agricultural
land,
30
if
a
deficiency
judgment
is
issued
against
the
debtor,
and
if
31
the
debtor
does
not
exercise
the
delay
of
the
enforceability
32
of
the
deficiency
judgment
or
general
execution
under
section
33
654.6
in
relation
to
the
execution
under
which
the
exemption
is
34
claimed,
the
disposable
earnings
of
the
debtor
are
exempt
from
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garnishment
to
enforce
the
deficiency
judgment
after
two
years
1
from
the
entry
of
the
deficiency
judgment,
sections
642.21
and
2
642.22
notwithstanding.
However,
earnings
paid
to
the
debtor
3
directly
or
indirectly
by
the
debtor
are
not
exempt.
4
14.
The
debtor’s
interest,
not
to
exceed
one
thousand
5
six
hundred
dollars
in
the
aggregate,
in
any
cash
on
hand,
6
bank
deposits,
credit
union
share
drafts,
or
other
deposits,
7
wherever
situated,
or
in
any
other
personal
property
whether
8
otherwise
exempt
or
not
under
this
chapter
.
9
Sec.
4.
Section
627.6,
subsection
12,
unnumbered
paragraph
10
1,
Code
2026,
is
amended
to
read
as
follows:
11
If
the
debtor
is
engaged
in
farming
and
does
not
exercise
the
12
delay
of
the
enforceability
of
a
deficiency
judgment
or
general
13
execution
under
section
654.6
in
relation
to
the
execution
14
under
which
the
exemption
is
claimed
,
the
debtor’s
interest
in
15
any
combination
of
the
following,
not
to
exceed
a
value
of
ten
16
twenty-eight
thousand
eight
hundred
dollars
in
the
aggregate:
17
Sec.
5.
Section
627.6,
subsection
15,
paragraph
a,
18
unnumbered
paragraph
1,
Code
2026,
is
amended
to
read
as
19
follows:
20
The
debtor’s
interest,
not
to
exceed
five
hundred
one
21
thousand
twenty-five
dollars
in
the
aggregate,
in
any
22
combination
of
the
following
property:
23
Sec.
6.
NEW
SECTION
.
627.6B
Exemption
amount
adjustments.
24
1.
Beginning
April
1,
2028,
and
every
three
years
25
thereafter,
each
exemption
amount
provided
in
section
627.6
26
shall
be
adjusted
to
reflect
the
percentage
change
in
the
27
consumer
price
index
for
all
urban
consumers,
published
in
the
28
federal
register
by
the
United
States
department
of
labor,
29
bureau
of
labor
statistics,
for
the
most
recent
three-year
30
period
ending
immediately
before
January
1
preceding
such
31
April
1,
and
rounded
to
the
nearest
twenty-five
dollars.
The
32
exemption
adjustment
shall
be
subject
to
11
U.S.C.
§104.
33
2.
Beginning
March
1,
2028,
and
every
three
years
34
thereafter,
the
department
of
revenue
shall
publish
the
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adjusted
exemption
amounts.
1
3.
The
department
of
revenue
shall
adopt
rules
pursuant
to
2
chapter
17A
to
administer
this
section.
3
Sec.
7.
Section
627.8,
Code
2026,
is
amended
to
read
as
4
follows:
5
627.8
Pension
money.
6
All
money
received
by
any
person,
a
resident
of
the
state
or
7
a
debtor
to
whom
the
law
of
this
state
applies
on
the
date
a
8
petition
in
bankruptcy
is
filed
,
as
a
pension
from
the
United
9
States
government,
whether
the
same
shall
be
in
the
actual
10
possession
of
such
pensioner,
or
deposited,
loaned,
or
invested
11
by
the
pensioner,
shall
be
exempt
from
execution
,
whether
such
12
pensioner
shall
be
the
head
of
a
family
or
not
.
13
Sec.
8.
Section
627.9,
Code
2026,
is
amended
to
read
as
14
follows:
15
627.9
Homestead
bought
with
pension
money.
16
The
homestead
of
every
such
pensioner
,
whether
the
head
of
17
a
family
or
not,
purchased
and
paid
for
with
any
such
pension
18
money,
or
the
proceeds
or
accumulations
thereof,
shall
also
19
be
exempt;
and
such
exemption
shall
apply
to
debts
of
such
20
pensioner
contracted
prior
to
the
purchase
of
the
homestead.
21
Sec.
9.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
22
importance,
takes
effect
upon
enactment.
23
EXPLANATION
24
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
25
the
explanation’s
substance
by
the
members
of
the
general
assembly.
26
This
bill
relates
to
bankruptcy
and
personal
property
27
exemption
amounts.
28
The
bill
expands
eligibility
for
the
homestead
exemption
29
from
judicial
sale
to
include
any
debtor
to
whom
the
law
of
the
30
state
applies
on
the
date
a
petition
in
bankruptcy
is
filed.
31
The
bill
similarly
expands
eligibility
for
personal
property
32
exemptions
for
a
debtor
to
include
a
debtor
to
whom
the
law
33
of
this
state
applies
on
the
date
a
petition
in
bankruptcy
is
34
filed.
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The
bill
adjusts
the
personal
property
exemption
limits
for
1
wedding
or
engagement
rings,
jewelry,
private
libraries,
family
2
bibles,
portraits,
pictures,
paintings,
apparel,
household
3
goods,
life
insurance
policies,
policies
of
life,
accident,
4
health,
or
disability
insurance,
motor
vehicles,
state
and
5
federal
tax
refunds,
proper
implements,
professional
books,
6
tools
of
the
trade,
cash,
bank
deposits,
credit
union
share
7
drafts,
implements
and
equipment
of
normal
farming
operation,
8
livestock
and
livestock
feed,
residential
rental
deposits,
9
residential
utility
deposits,
and
prepaid
rent.
10
Under
current
law,
if
a
deficiency
judgment
is
issued
11
against
a
debtor
engaged
in
farming,
and
if
the
debtor
does
not
12
delay
the
enforcement
of
the
deficiency
judgment
or
general
13
execution
under
which
the
exemption
is
claimed,
the
disposable
14
earnings
of
the
debtor
are
exempt
from
garnishment.
The
bill
15
strikes
the
requirement
that
the
debtor
does
not
delay
the
16
enforcement
of
the
deficiency
judgment
or
general
execution
to
17
qualify
for
the
exemption.
18
Under
current
law,
if
a
debtor
is
engaged
in
farming
and
19
does
not
delay
enforcement
of
a
deficiency
judgment
or
general
20
execution
under
which
the
exemption
is
claimed,
the
debtor
may
21
exempt
certain
farming
operation
property.
The
bill
strikes
22
the
requirement
that
the
debtor
does
not
delay
the
enforcement
23
of
the
deficiency
judgment
or
general
execution
to
qualify
for
24
the
exemption.
25
Beginning
April
1,
2028,
and
every
three
years
thereafter,
26
each
exemption
amount
provided
in
Code
section
627.6
must
be
27
adjusted
to
reflect
the
percentage
change
in
the
consumer
price
28
index
for
all
urban
consumers
for
the
most
recent
three-year
29
period
and
rounded
to
the
nearest
$25.
Beginning
March
1,
30
2028,
and
every
three
years
thereafter,
the
department
of
31
revenue
shall
publish
the
adjusted
exemption
amounts
and
adopt
32
rules
to
implement
the
exemption
adjustment
process.
33
Current
law
exempts
moneys
received
by
a
resident
as
a
34
pension
from
the
United
States
government
from
execution,
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regardless
of
whether
the
pensioner
is
a
head
of
the
family.
1
The
bill
expands
eligibility
for
the
exemption
to
include
a
2
debtor
to
whom
the
law
of
this
state
applies
on
the
date
a
3
petition
in
bankruptcy
is
filed,
and
removes
the
language
4
clarifying
whether
the
pensioner
is
the
head
of
a
family
or
5
not.
6
The
bill
also
strikes
the
clarifying
language
“whether
the
7
pensioner
is
a
head
of
a
family
or
not”
from
the
provision
8
exempting
a
homestead
purchased
with
pension
money.
9
The
bill
takes
effect
upon
enactment.
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