H. B. 2774
(By Delegate Louisos)
[Introduced February 24, 2009; referred to the
Committee on the Judiciary.]
A BILL to amend and reenact §38-10-4 of the Code of West Virginia,
1931, as amended, relating to allowing any party in a
bankruptcy proceeding to compel the bankruptcy trustee to
disclose the exact disposition of any property and any
compensation derived by the trustee in said proceeding.
Be it enacted by the Legislature of West Virginia:
That §38-10-4 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 38. 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 $25,000 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.
Provided, That However, when the debtor is a physician
licensed to practice medicine in this state under article three or
article fourteen, chapter thirty of this code, and has commenced a
bankruptcy proceeding in part due to a verdict or judgment entered
in a medical professional liability action, if the physician has
current medical malpractice insurance in the amount of at least $1
million for each occurrence, the debtor physician's interest that
is exempt under this subsection may exceed $25,000 in value but may
not exceed $250,000 per household.
(b) The debtor's interest, not to exceed $2,400 in value, in
one motor vehicle.
(c) The debtor's interest, not to exceed $400 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
However, the total amount of personal property exempted under this subsection may not exceed $8,000.
(d) The debtor's interest, not to exceed $1,000 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 $800 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 $1,500 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 $8,000 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 $15,000 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 Prepaid Tuition 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.
(l) Notwithstanding any other provision in this code, a
trustee appointed pursuant to Title 11 of the United States Code shall provide an accounting forthwith upon demand by any party in
any applicable proceeding in United States Bankruptcy Court
regarding the disposition of any property by the trustee in the
particular proceeding, as well as any compensation derived by the
trustee in said proceeding.
NOTE: The bill shall allow any party in a bankruptcy
proceeding to compel the trustee to disclose the exact disposition
of any property by the trustee, as well as any compensation derived
by the trustee in said proceeding.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.