SOURCE: IC 34-55-10-2; (08)MO114601.2. -->
"SECTION 2. IC 34-55-10-2, AS AMENDED BY P.L.179-2005,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: 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) 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.
(8) (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
(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 aggregate
contributions.
(9) (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
(8) 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.
(10) (11) The debtor's interest in a refund or a credit received or
to be received under section 32 of the Internal Revenue Code of
1986.
(d) 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) 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.".
(Reference is to HB 1146 as printed January 17, 2008.)
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MO114601/DI 117 2008