Mr. HATCH (for himself, Mr. LEAHY, Mr. CHAMBLISS, Mr. DURBIN, Mr. SCHUMER, and Mrs. CLINTON) introduced the following bill\; which was read twice and referred to the Committee on the Judiciary
A BILL
To make improvements in the operation and administration of the Federal courts, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled...
To amend title 11, United States Code, to provide for the avoidance of certain transfers, and the alternate prosecution of certain actions, relating to certain retirement benefits.
To extend the period for which chapter 12 of title 11, United States Code, is reenacted by 6 months.
To amend title 11 of the United States Code with respect to the dismissal of certain involuntary cases.
To authorize 36 additional bankruptcy judgeships, and for other purposes.
To authorize an additional permanent judgeship in the district of Idaho, and for other purposes.
To provide that bonuses and other extraordinary or excessive compensation of corporate insiders and wrongdoers may be included in the bankruptcy estate.
To amend title 11, United States Code, to limit the value of certain real and personal property that a debtor may elect to exempt under State or local law, and for other purposes.
S. 2996 Would Limit Homestead Exemption
S. 2996 WOULD LIMIT HOMESTEAD EXEMPTION
On September 24th, Senator Kohl (D-WI) introduced
S. 2996, a stand-alone bill that would cap homestead-related exemptions in
bankruptcy at $125,000 in the aggregate.
The bill titled the “Bankruptcy Abuse Reform Act of
2002” would amend section 522 to pre-empt higher state law exemptions in
cases where the debtor elected the state law exemption scheme or was required
to use the state law scheme because the relevant state had opted out of the
section 522(d) federal exemption list.
The $125,000 cap would apply to the aggregate of all exemptions claimed
in the case for real or personal property used as a residence by the debtor or
his/her dependants, interests in a cooperative that owns property used as a
residence by the debtor or his/her dependants (a cooperative apartment), or a
burial plot for the debtor or his/her dependants. Like the pending Bankruptcy Abuse Prevention and Consumer
Protection Act of 2002, the cap would not apply to an exemption claimed by a
family farmer for his/her principal residence. However, unlike the larger reform bill, this cap would be
absolute and would not provide exceptions for debtors who had lived in the
homestead for a lengthy period of time.
Prof. G. Ray Warner, ABI Resident Scholar, Professor of Law at the University of Missouri-Kansas City