H.R. 4064: Protecting Gun Owners in Bankruptcy Act

This bill, known as the "Protecting Gun Owners in Bankruptcy Act," proposes amendments to the U.S. Bankruptcy Code, specifically to greatly affect how firearms are handled in bankruptcy proceedings.

Key Provisions

• Exemption for Firearms: The bill allows individuals filing for bankruptcy to exempt up to $3,000 in value worth of firearms from the bankruptcy estate. This means that debtors can keep firearms valued at this amount without having to surrender them to pay creditors.
• Addition to Existing Code: The new provision would be added to Section 522 of Title 11 of the United States Code, which outlines what property can be exempted in bankruptcy cases.
• Amendment Clauses: The bill introduces two clauses specifying that debtors can exempt their interest in firearms. The first clause applies to general exemptions and a second applies specifically to the classification of property that can be excluded from the estate in bankruptcy.
• Effective Date: The amendments are set to take effect the day the bill is enacted, but they would apply only to bankruptcy cases initiated after that enactment date.

Impact on Bankruptcy Filings

If enacted, individuals going through bankruptcy would have the opportunity to retain certain firearms, thus preserving personal possessions that might otherwise be liquidated to settle debts. This aims to protect gun owners in financial distress by allowing them to keep a portion of their firearms within specified limits.

Considerations

The bill does not alter other aspects of bankruptcy law but focuses solely on the treatment of firearms within bankruptcy proceedings. It reflects a legislative intent to safeguard the rights of gun owners during financial hardships.

Relevant Companies

None found