H. B. 2424
(By Delegates Martin, Michael, Thompson and Rowe)
[Introduced January 27, 1999; referred to the
Committee on Finance.]
A BILL 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 funds in individual retirement accounts from levy
and attachment by creditors.
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) in the name of the
defendant are exempt from attachment.
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) in the
name of the defendant are exempt from attachment, regardless of
the amount of those funds.
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), 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;
and
(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
1954 1986.
(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).
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.