Introduced Version






HOUSE BILL No. 1192

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 34-55-10-2.

Synopsis: Bankruptcy exemptions. Provides that if the total value of property claimed as exempt by a bankruptcy debtor with respect to certain specified categories of property is less than the sum of the maximum allowed exemption values for those categories, the debtor may apportion among the specified categories an amount equal to the difference between the sum of the maximum allowed exemption values and the total amount claimed as exempt, notwithstanding the applicable maximum exemption value for each category. Provides that the total amount of intangible personal property that may be claimed as exempt by a debtor may not exceed $10,000.

Effective: July 1, 2013.





DeLaney




    January 10, 2013, read first time and referred to Committee on Judiciary.







Introduced

First Regular Session 118th General Assembly (2013)


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HOUSE BILL No. 1192



    A BILL FOR AN ACT to amend the Indiana Code concerning civil procedure.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 34-55-10-2; (13)IN1192.1.1. -->     SECTION 1. IC 34-55-10-2, AS AMENDED BY P.L.160-2012, SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. (a) This section does not apply to judgments obtained before October 1, 1977.
    (b) The amount of each exemption under subsection (c) applies until a rule is adopted by the department of financial institutions under section 2.5 of this chapter.
    (c) Subject to subsection (d), the following property of a debtor domiciled in Indiana is exempt:
        (1) Real estate or personal property constituting the personal or family residence of the debtor or a dependent of the debtor, or estates or rights in that real estate or personal property, of not more than fifteen thousand dollars ($15,000). The exemption under this subdivision is individually available to joint debtors concerning property held by them as tenants by the entireties.
        (2) Other real estate or tangible personal property of eight thousand dollars ($8,000).
        (3) Intangible personal property, including choses in action, deposit accounts, and cash (but excluding debts owing and income owing), of three hundred dollars ($300).
        (4) Professionally prescribed health aids for the debtor or a dependent of the debtor.
        (5) Any interest that the debtor has in real estate held as a tenant by the entireties. The exemption under this subdivision does not apply to a debt for which the debtor and the debtor's spouse are jointly liable.
        (6) An interest, whether vested or not, that the debtor has in a retirement plan or fund to the extent of:
            (A) contributions, or portions of contributions, that were made to the retirement plan or fund by or on behalf of the debtor or the debtor's spouse:
                (i) which were not subject to federal income taxation to the debtor at the time of the contribution; or
                (ii) which are made to an individual retirement account in the manner prescribed by Section 408A of the Internal Revenue Code of 1986;
            (B) earnings on contributions made under clause (A) that are not subject to federal income taxation at the time of the levy; and
            (C) roll-overs of contributions made under clause (A) that are not subject to federal income taxation at the time of the levy.
        (7) Money that is in a medical care savings account established under IC 6-8-11.
        (8) Money that is in a health savings account established under Section 223 of the Internal Revenue Code of 1986.
        (9) Any interest the debtor has in a qualified tuition program, as defined in Section 529(b) of the Internal Revenue Code of 1986, but only to the extent funds in the program are not attributable to:
            (A) excess contributions, as described in Section 529(b)(6) of the Internal Revenue Code of 1986, and earnings on the excess contributions;
            (B) contributions made by the debtor within one (1) year before the date of the levy or the date a bankruptcy petition is filed by or against the debtor, and earnings on the contributions; or
            (C) the excess over five thousand dollars ($5,000) of aggregate contributions made by the debtor for all programs under this subdivision and education savings accounts under subdivision (10) having the same designated beneficiary:
                (i) not later than one (1) year before; and
                (ii) not earlier than two (2) years before;
            the date of the levy or the date a bankruptcy petition is filed by or against the debtor, and earnings on the aggregate contributions.
        (10) Any interest the debtor has in an education savings account, as defined in Section 530(b) of the Internal Revenue Code of 1986, but only to the extent funds in the account are not attributable to:
            (A) excess contributions, as described in Section 4973(e) of the Internal Revenue Code of 1986, and earnings on the excess contributions;
            (B) contributions made by the debtor within one (1) year before the date of the levy or the date a bankruptcy petition is filed by or against the debtor, and earnings on the contributions; or
            (C) the excess over five thousand dollars ($5,000) of aggregate contributions made by the debtor for all accounts under this subdivision and qualified tuition programs under subdivision (9) having the same designated beneficiary:
                (i) not later than one (1) year before; and
                (ii) not earlier than two (2) years before;
            the date of the levy or the date a bankruptcy petition is filed by or against the debtor, and earnings on the excess contributions.
        (11) The debtor's interest in a refund or a credit received or to be received under the following:
            (A) Section 32 of the Internal Revenue Code of 1986 (the federal earned income tax credit).
            (B) IC 6-3.1-21-6 (the Indiana earned income tax credit).
        (12) A disability benefit awarded to a veteran for a service connected disability under 38 U.S.C. 1101 et seq. This subdivision does not apply to a service connected disability benefit that is subject to child and spousal support enforcement under 42 U.S.C. 659(h)(1)(A)(ii)(V).
        (13) Compensation distributed from the supplemental state fair relief fund under IC 34-13-8 to an eligible person (as defined in IC 34-13-8-1) for an occurrence (as defined in IC 34-13-8-2). This subdivision applies even if a debtor is not domiciled in Indiana.
    (d) If the total value of property claimed as exempt by a debtor under subsection (c)(1), (c)(2), and (c)(3) is less than the sum of the maximum total exemption values allowed under subsection (c)(1), (c)(2), and (c)(3), an amount equal to:
        (1) the sum of the maximum total exemption values allowed under subsection (c)(1), (c)(2), and (c)(3); minus
        (2) the total value of property claimed as exempt by the debtor under subsection (c)(1), (c)(2), and (c)(3);
may be apportioned, in a manner determined by the debtor, among subsection (c)(1), (c)(2), or (c)(3), or any combination of subsection (c)(1), (c)(2), and (c)(3), and applied as additional exemption amounts under those provisions, notwithstanding the applicable maximum exemption value for each of those provisions. However, the total amount that may be claimed as exempt by a debtor under subsection (c)(3) may not exceed ten thousand dollars ($10,000).

    (d) (e) A bankruptcy proceeding that results in the ownership by the bankruptcy estate of a debtor's interest in property held in a tenancy by the entireties does not result in a severance of the tenancy by the entireties.
    (e) (f) Real estate or personal property upon which a debtor has voluntarily granted a lien is not, to the extent of the balance due on the debt secured by the lien:
        (1) subject to this chapter; or
        (2) exempt from levy or sale on execution or any other final process from a court.