ENROLLED
H. B. 2424
(By Delegates Martin, Michael, Thompson and Rowe)
[Passed March 13, 1999; in effect from passage.]
AN ACT to amend and reenact section seven, article seven, chapter
thirty-eight of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; to amend and reenact section
one, article eight of said chapter; and to amend and reenact
section four, article ten of said chapter, all relating to
exempting certain retirement funds from levy and attachment
by creditors; exempting individual retirement and simplified
employee pension accounts from attachments, levy and
bankruptcy proceedings; and providing limits for exemptions.
Be it enacted by the Legislature of West Virginia:
That section seven, article seven, chapter thirty-eight of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted; that section one, article
eight of said chapter be amended and reenacted; and that section
four, article ten of said chapter be amended and reenacted, all to read as follows:
ARTICLE 7. ATTACHMENT.
§38-7-7. What property may be attached.
Every attachment issued under the provisions of this article
may be levied upon any estate, real or personal, of the defendant
named therein, or so much thereof as is sufficient to pay the
amount for which it issues:
Provided, That funds on deposit in
an individual retirement account (IRA) including a simplified
employee pension (SEP) in the name of the defendant are exempt
from attachment:
Provided, however, That such amount shall be
exempt only to the extent it is not, or has not been, subject to
an excise or other 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 such tax is or has
been paid.
ARTICLE 8. EXEMPTIONS FROM LEVY.
§38-8-1. Exemptions of personal property.
Any husband, wife, parent or other head of a household
residing in this state, or the infant children of deceased
parents, may set apart and hold personal property not exceeding
one thousand dollars in value to be exempt from execution or
other process, except as hereinafter provided. Any mechanic, artisan or laborer residing in this state, whether he or she be
a husband, wife, parent or other head of a household, or not, may
hold the working tools of his or her trade or occupation to the
value of fifty dollars exempt from forced sale or execution:
Provided, That in no case shall the exemption allowed any one
person exceed one thousand dollars:
Provided, however, That
funds on deposit in an individual retirement account (IRA)
including a simplified employee pension (SEP) in the name of the
defendant are exempt from attachment:
Provided further, That such
amount shall be exempt only to the extent it is not or has not
been subject to an excise or other 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
such tax is or has been paid.
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 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 thousand four
hundred dollars in value, in one motor vehicle.
(c) The debtor's interest, not to exceed four 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 shall not exceed
eight 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 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 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 unmatured 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
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
unmatured 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) Such 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 such plan or contract arose;
(B) Such payment is on account of age or length of service;
(C) Such 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, such 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 such 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 such 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 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 prepaid tuition trust fund on
behalf of any beneficiary.
This section shall not be construed to affect the
applicability of any provision of the federal bankruptcy law
other than 11 U.S.C. 552(d).