SB1246 Summary

• Amends Section 12-1001 of the Code of Civil Procedure to add ABLE Accounts (as defined by Section 529 of the Internal Revenue Code) to the list of exempt personal property from judgment and attachment.

• Exempts ABLE Account funds except for contributions made with intent to defraud creditors, contributions exceeding annual gift tax exclusion limits within 365 days before bankruptcy filing, and excessive contributions made 366-730 days before bankruptcy filing.

• Maintains existing exemptions for necessary clothing, school books, family pictures, motor vehicles (up to $2,400), professional tools (up to $1,500), health aids, life insurance proceeds, government benefits, crime victim awards, and college savings accounts.

• Provides that money from the sale of exempt property retains exemption status to the same extent as the original property.

• Prohibits exemption for property purchased with intent to defraud creditors or convert nonexempt property to exempt property, with property acquired within 6 months of bankruptcy filing presumed to be acquired in contemplation of bankruptcy.