SB427 Summary

• Increases homestead exemption from $5,000 to $30,000 and personal property exemption from $3,000 to $10,000 for individual debtors and surviving spouses.

• Allows debtors filing bankruptcy to use federal exemption limits under Title 11 of the U.S. Code as an option in addition to state exemptions.

• Restricts wage garnishment to 10% of disposable income above 80 times the minimum wage, or 15% if weekly disposable earnings exceed $1,200, with exemptions for support obligations.

• Mandates State Treasurer to adjust all exemption amounts every three years based on the federal Consumer Price Index, rounded to the nearest $25, effective July 1, 2016.

• Takes effect on the first day of the third month following passage and approval by the Governor.