Notes on 11 U.S.C. § 522 : US Code - Notes

Search Notes on 11 U.S.C. § 522 : US Code - Notes

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2586; Pub. L. 98-353, title
III, Secs. 306, 453, July 10, 1984, 98 Stat. 353, 375; Pub. L. 99-
554, title II, Sec. 283(i), Oct. 27, 1986, 100 Stat. 3117; Pub. L.
101-647, title XXV, Sec. 2522(b), Nov. 29, 1990, 104 Stat. 4866;
Pub. L. 103-394, title I, Sec. 108(d), title III, Secs. 303,
304(d), 310, title V, Sec. 501(d)(12), Oct. 22, 1994, 108 Stat.
4112, 4132, 4133, 4137, 4145; Pub. L. 106-420, Sec. 4, Nov. 1,
2000, 114 Stat. 1868; Pub. L. 109-8, title II, Secs. 216, 224(a),
(e)(1), title III, Secs. 307, 308, 313(a), 322(a), Apr. 20, 2005,
119 Stat. 55, 62, 65, 81, 87, 96.)
HISTORICAL AND REVISION NOTES
LEGISLATIVE STATEMENTS
Section 522 of the House amendment represents a compromise on the
issue of exemptions between the position taken in the House bill,
and that taken in the Senate amendment. Dollar amounts specified in
section 522(d) of the House bill have been reduced from amounts as
contained in H.R. 8200 as passed by the House. The States may, by
passing a law, determine whether the Federal exemptions will apply
as an alternative to State exemptions in bankruptcy cases.
Section 522(c)(1) tracks the House bill and provides that
dischargeable tax claims may not be collected out of exempt
property.
Section 522(f)(2) is derived from the Senate amendment
restricting the debtor to avoidance of nonpossessory, nonpurchase
money security interests.
Exemptions: Section 522(c)(1) of the House amendment adopts a
provision contained in the House bill that dischargeable taxes
cannot be collected from exempt assets. This changes present law,
which allows collection of dischargeable taxes from exempt
property, a rule followed in the Senate amendment. Nondischargeable
taxes, however, will continue to the [be] collectable out of exempt
property. It is anticipated that in the next session Congress will
review the exemptions from levy currently contained in the Internal
Revenue Code [title 26] with a view to increasing the exemptions to
more realistic levels.
SENATE REPORT NO. 95-989
Subsection (a) of this section defines two terms: "dependent"
includes the debtor's spouse, whether or not actually dependent;
and "value" means fair market value as of the date of the filing of
the petition.
Subsection (b) tracks current law. It permits a debtor the
exemptions to which he is entitled under other Federal law and the
law of the State of his domicile. Some of the items that may be
exempted under Federal laws other than title 11 include:
Foreign Service Retirement and Disability payments, 22 U.S.C.
1104; (!1)
Social security payments, 42 U.S.C. 407;
Injury or death compensation payments from war risk hazards, 42
U.S.C. 1717;
Wages of fishermen, seamen, and apprentices, 46 U.S.C. 601;
(!2)
Civil service retirement benefits, 5 U.S.C. 729, 2265; (!3)
Longshoremen's and Harbor Workers' Compensation Act death and
disability benefits, 33 U.S.C. 916;
Railroad Retirement Act annuities and pensions, 45 U.S.C.
228(L); (!4)
Veterans benefits, 45 U.S.C. 352(E); (!5)
Special pensions paid to winners of the Congressional Medal of
Honor, 38 U.S.C. 3101; (!6) and
Federal homestead lands on debts contracted before issuance of
the patent, 43 U.S.C. 175.
He may also exempt an interest in property in which the debtor had
an interest as a tenant by the entirety or joint tenant to the
extent that interest would have been exempt from process under
applicable nonbankruptcy law.
Under proposed section 541, all property of the debtor becomes
property of the estate, but the debtor is permitted to exempt
certain property from property of the estate under this section.
Property may be exempted even if it is subject to a lien, but only
the unencumbered portion of the property is to be counted in
computing the "value" of the property for the purposes of
exemption.
As under current law, the debtor will be permitted to convert
nonexempt property into exempt property before filing a bankruptcy
petition. The practice is not fraudulent as to creditors, and
permits the debtor to make full use of the exemptions to which he
is entitled under the law.
Subsection (c) insulates exempt property from prepetition claims
other than tax claims (whether or not dischargeable), and other
than alimony, maintenance, or support claims that are excepted from
discharge. The bankruptcy discharge does not prevent enforcement of
valid liens. The rule of Long v. Bullard, 117 U.S. 617 (1886), is
accepted with respect to the enforcement of valid liens on
nonexempt property as well as on exempt property. Cf. Louisville
Joint Stock Land Bank v. Radford, 295 U.S. 555, 583 (1935).
Subsection (c)(3) permits the collection of dischargeable taxes
from exempt assets. Only assets exempted from levy under Section
6334 of the Internal Revenue Code [title 26] or under applicable
state or local tax law cannot be applied to satisfy these tax
claims. This rule applies to prepetition tax claims against the
debtor regardless of whether the claims do or do not receive
priority and whether they are dischargeable or nondischargeable.
Thus, even if a tax is dischargeable vis-a-vis the debtor's after-
acquired assets, it may nevertheless be collectible from exempt
property held by the estate. (Taxes incurred by the debtor's estate
which are collectible as first priority administrative expenses are
not collectible from the debtor's estate which are collectible as
first priority administrative expenses are not collectible from the
debtor's exempt assets.)
Subsection (d) protects the debtor's exemptions, either Federal
or State, by making unenforceable in a bankruptcy case a waiver of
exemptions or a waiver of the debtor's avoiding powers under the
following subsections.
Subsection (e) protects the debtor's exemptions, his discharge,
and thus his fresh start by permitting him to avoid certain liens
on exempt property. The debtor may avoid a judicial lien on any
property to the extent that the property could have been exempted
in the absence of the lien, and may similarly avoid a nonpurchase-
money security interest in certain household and personal goods.
The avoiding power is independent of any waiver of exemptions.
Subsection (f) gives the debtor the ability to exempt property
that the trustee recovers under one of the trustee's avoiding
powers if the property was involuntarily transferred away from the
debtor (such as by the fixing of a judicial lien) and if the debtor
did not conceal the property. The debtor is also permitted to
exempt property that the trustee recovers as the result of the
avoiding of the fixing of certain security interests to the extent
that the debtor could otherwise have exempted the property.
Subsection (g) provides that if the trustee does not exercise an
avoiding power to recover a transfer of property that would be
exempt, the debtor may exercise it and exempt the property, if the
transfer was involuntary and the debtor did not conceal the
property. If the debtor wishes to preserve his right to pursue any
action under this provision, then he must intervene in any action
brought by the trustee based on the same cause of action. It is not
intended that the debtor be given an additional opportunity to
avoid a transfer or that the transferee should have to defend the
same action twice. Rather, the section is primarily designed to
give the debtor the rights the trustee could have, but has not,
pursued. The debtor is given no greater rights under this provision
than the trustee, and thus, the debtor's avoiding powers under
proposed sections 544, 545, 547, and 548, are subject to proposed
546, as are the trustee's powers.
These subsections are cumulative. The debtor is not required to
choose which he will use to gain an exemption. Instead, he may use
more than one in any particular instance, just as the trustee's
avoiding powers are cumulative.
Subsection (h) permits recovery by the debtor of property
transferred by an avoided transfer from either the initial or
subsequent transferees. It also permits preserving a transfer for
the benefit of the debtor. In either event, the debtor may exempt
the property recovered or preserved.
Subsection (i) makes clear that the debtor may exempt property
under the avoiding subsections (f) and (h) only to the extent he
has exempted less property than allowed under subsection (b).
Subsection (j) makes clear that the liability of the debtor's
exempt property is limited to the debtor's aliquot share of the
costs and expenses recovery of property that the trustee recovers
and the debtor later exempts, and any costs and expenses of
avoiding a transfer by the debtor that the debtor has not already
paid.
Subsection (k) requires the debtor to file a list of property
that he claims as exempt from property of the estate. Absent an
objection to the list, the property is exempted. A dependent of the
debtor may file it and thus be protected if the debtor fails to
file the list.
Subsection (l) provides the rule for a joint case.
HOUSE REPORT NO. 95-595
Subsection (a) of this section defines two terms: "dependent"
includes the debtor's spouse, whether or not actually dependent;
and "value" means fair market value as of the date of the filing of
the petition.
Subsection (b), the operative subsection of this section, is a
significant departure from present law. It permits an individual
debtor in a bankruptcy case a choice between exemption systems. The
debtor may choose the Federal exemptions prescribed in subsection
(d), or he may choose the exemptions to which he is entitled under
other Federal law and the law of the State of his domicile. If the
debtor chooses the latter, some of the items that may be exempted
under other Federal laws include:
- Foreign Service Retirement and Disability payments, 22 U.S.C.
1104; (!7)
- Social security payments, 42 U.S.C. 407;
- Injury or death compensation payments from war risk hazards,
42 U.S.C. 1717;
- Wages of fishermen, seamen, and apprentices, 46 U.S.C. 601;
- Civil service retirement benefits, 5 U.S.C. 729, 2265; (!8)
- Longshoremen's and Harbor Workers' Compensation Act death and
disability benefits, 33 U.S.C. 916;
- Railroad Retirement Act annuities and pensions, 45 U.S.C.
228(l); (!9)
- Veterans benefits, 45 U.S.C. 352(E); (!10)
- Special pensions paid to winners of the Congressional Medal of
Honor, 38 U.S.C. 3101; (!11) and
- Federal homestead lands on debts contracted before issuance of
the patent, 43 U.S.C. 175.
He may also exempt an interest in property in which the debtor had
an interest as a tenant by the entirety or joint tenant to the
extent that interest would have been exempt from process under
applicable nonbankruptcy law. The Rules will provide for the
situation where the debtor's choice of exemption, Federal or State,
was improvident and should be changed, for example, where the court
has ruled against the debtor with respect to a major exemption.
Under proposed 11 U.S.C. 541, all property of the debtor becomes
property of the estate, but the debtor is permitted to exempt
certain property from property of the estate under this section.
Property may be exempted even if it is subject to a lien, but only
the unencumbered portion of the property is to be counted in
computing the "value" of the property for the purposes of
exemption. Thus, for example, a residence worth $30,000 with a
mortgage of $25,000 will be exemptable [sic] to the extent of
$5,000. This follows current law. The remaining value of the
property will be dealt with in the bankruptcy case as is any
interest in property that is subject to a lien.
As under current law, the debtor will be permitted to convert
nonexempt property into exempt property before filing a bankruptcy
petition. See Hearings, pt. 3, at 1355-58. The practice is not
fraudulent as to creditors and permits the debtor to make full use
of the exemptions to which he is entitled under the law.
Subsection (c) insulates exempt property from prepetition claims,
except tax and alimony, maintenance, or support claims that are
excepted from discharge. The bankruptcy discharge will not prevent
enforcement of valid liens. The rule of Long v. Bullard, 117 U.S.
617 (1886) [6 S.Ct. 917, 29 L.Ed. 1004], is accepted with respect
to the enforcement of valid liens on nonexempt property as well as
on exempt property. Cf. Louisville Joint Stock Land Bank v.
Radford, 295 U.S. 555, 583 (1935) [55 S.Ct. 854].
Subsection (d) specifies the Federal exemptions to which the
debtor is entitled. They are derived in large part from the Uniform
Exemptions Act, promulgated by the Commissioners of Uniform State
Laws in August, 1976. Eleven categories of property are exempted.
First is a homestead to the extent of $10,000, which may be claimed
in real or personal property that the debtor or a dependent of the
debtor uses as a residence. Second, the debtor may exempt a motor
vehicle to the extent of $1500. Third, the debtor may exempt
household goods, furnishings, clothing, and similar household
items, held primarily for the personal, family, or household use of
the debtor or a dependent of the debtor. "Animals" includes all
animals, such as pets, livestock, poultry, and fish, if they are
held primarily for personal, family or household use. The
limitation for third category items is $300 on any particular item.
The debtor may also exempt up to $750 of personal jewelry.
Paragraph (5) permits the exemption of $500, plus any unused
amount of the homestead exemption, in any property, in order not to
discriminate against the nonhomeowner. Paragraph (6) grants the
debtor up to $1000 in implements, professional books, or tools, of
the trade of the debtor or a dependent. Paragraph (7) exempts a
life insurance contract, other than a credit life insurance
contract, owned by the debtor. This paragraph refers to the life
insurance contract itself. It does not encompass any other rights
under the contract, such as the right to borrow out the loan value.
Because of this provision, the trustee may not surrender a life
insurance contract, which remains property of the debtor if he
chooses the Federal exemptions. Paragraph (8) permits the debtor to
exempt up to $5000 in loan value in a life insurance policy owned
by the debtor under which the debtor or an individual of whom the
debtor is a dependent is the insured. The exemption provided by
this paragraph and paragraph (7) will also include the debtor's
rights in a group insurance certificate under which the insured is
an individual of whom the debtor is a dependent (assuming the
debtor has rights in the policy that could be exempted) or the
debtor. A trustee is authorized to collect the entire loan value on
every life insurance policy owned by the debtor as property of the
estate. First, however, the debtor will choose which policy or
policies under which the loan value will be exempted. The $5000
figure is reduced by the amount of any automatic premium loan
authorized after the date of the filing of the petition under
section 542(d). Paragraph (9) exempts professionally prescribed
health aids.
Paragraph (10) exempts certain benefits that are akin to future
earnings of the debtor. These include social security, unemployment
compensation, or public assistance benefits, veteran's benefits,
disability, illness, or unemployment benefits, alimony, support, or
separate maintenance (but only to the extent reasonably necessary
for the support of the debtor and any dependents of the debtor),
and benefits under a certain stock bonus, pension, profitsharing,
annuity or similar plan based on illness, disability, death, age or
length of service. Paragraph (11) allows the debtor to exempt
certain compensation for losses. These include crime victim's
reparation benefits, wrongful death benefits (with a reasonably
necessary for support limitation), life insurance proceeds (same
limitation), compensation for bodily injury, not including pain and
suffering ($10,000 limitation), and loss of future earnings
payments (support limitation). This provision in subparagraph
(D)(11) is designed to cover payments in compensation of actual
bodily injury, such as the loss of a limb, and is not intended to
include the attendant costs that accompany such a loss, such as
medical payments, pain and suffering, or loss of earnings. Those
items are handled separately by the bill.
Subsection (e) protects the debtor's exemptions, either Federal
or State, by making unenforceable in a bankruptcy case a waiver of
exemptions or a waiver of the debtor's avoiding powers under the
following subsections.
Subsection (f) protects the debtor's exemptions, his discharge,
and thus his fresh start by permitting him to avoid certain liens
on exempt property. The debtor may avoid a judicial lien on any
property to the extent that the property could have been exempted
in the absence of the lien, and may similarly avoid a nonpurchase-
money security interest in certain household and personal goods.
The avoiding power is independent of any waiver of exemptions.
Subsection (g) gives the debtor the ability to exempt property
that the trustee recovers under one of the trustee's avoiding
powers if the property was involuntarily transferred away from the
debtor (such as by the fixing of a judicial lien) and if the debtor
did not conceal the property. The debtor is also permitted to
exempt property that the trustee recovers as the result of the
avoiding of the fixing of certain security interests to the extent
that the debtor could otherwise have exempted the property.
If the trustee does not pursue an avoiding power to recover a
transfer of property that would be exempt, the debtor may pursue it
and exempt the property, if the transfer was involuntary and the
debtor did not conceal the property. If the debtor wishes to
preserve his right to pursue an action under this provision, then
he must intervene in any action brought by the trustee based on the
same cause of action. It is not intended that the debtor be given
an additional opportunity to avoid a transfer or that the
transferee have to defend the same action twice. Rather, the
section is primarily designed to give the debtor the rights the
trustee could have pursued if the trustee chooses not to pursue
them. The debtor is given no greater rights under this provision
than the trustee, and thus the debtor's avoiding powers under
proposed 11 U.S.C. 544, 545, 547, and 548, are subject to proposed
11 U.S.C. 546, as are the trustee's powers.
These subsections are cumulative. The debtor is not required to
choose which he will use to gain an exemption. Instead, he may use
more than one in any particular instance, just as the trustee's
avoiding powers are cumulative.
Subsection (i) permits recovery by the debtor of property
transferred in an avoided transfer from either the initial or
subsequent transferees. It also permits preserving a transfer for
the benefit of the debtor. Under either case the debtor may exempt
the property recovered or preserved.
Subsection (k) makes clear that the debtor's aliquot share of the
costs and expenses [for] recovery of property that the trustee
recovers and the debtor later exempts, and any costs and expenses
of avoiding a transfer by the debtor that the debtor has not
already paid.
Subsection (l) requires the debtor to file a list of property
that he claims as exempt from property of the estate. Absent an
objection to the list, the property is exempted. A dependent of the
debtor may file it and thus be protected if the debtor fails to
file the list.
Subsection (m) requires the clerk of the bankruptcy court to give
notice of any exemptions claimed under subsection (l), in order
that parties in interest may have an opportunity to object to the
claim.
Subsection (n) provides the rule for a joint case: each debtor is
entitled to the Federal exemptions provided under this section or
to the State exemptions, whichever the debtor chooses.
REFERENCES IN TEXT
The Federal Rules of Bankruptcy Procedure, referred to in subsec.
(b)(1), are set out in the Appendix to this title.
The Internal Revenue Code of 1986, referred to in subsecs.
(b)(3)(C), (4), (d)(10)(E)(iii), (12), and (n), is classified
generally to Title 26, Internal Revenue Code.
Sections 3(a)(47), 12, and 15(d) of the Securities Exchange Act
of 1934, referred to in subsec. (q)(1)(B)(i), (ii), are classified
to sections 78c(a)(47), 78l, and 78o(d), respectively, of Title 15,
Commerce and Trade.
Section 6 of the Securities Exchange Act of 1933, referred to in
subsec. (q)(1)(B)(ii), is classified to section 77f of Title 15,
Commerce and Trade.
AMENDMENTS
2005 - Subsec. (b). Pub. L. 109-8, Sec. 224(a)(1)(B)-(F),
designated introductory provisions of subsec. (b) as par. (1),
substituted "paragraph (3)" for "paragraph (2)" in two places and
"paragraph (2)" for "paragraph (1)" wherever appearing, struck out
"Such property is - " after "case is filed.", and struck out former
par. (1) which read: "property that is specified under subsection
(d) of this section, unless the State law that is applicable to the
debtor under paragraph (2)(A) of this subsection specifically does
not so authorize; or, in the alternative,".
Subsec. (b)(2). Pub. L. 109-8, Sec. 224(a)(1)(B), added par. (2).
Former par. (2) redesignated (3).
Subsec. (b)(2)(C). Pub. L. 109-8, Sec. 224(a)(1)(A)(i)-(iii),
added subpar. (C).
Subsec. (b)(3). Pub. L. 109-8, Sec. 307(2), inserted "If the
effect of the domiciliary requirement under subparagraph (A) is to
render the debtor ineligible for any exemption, the debtor may
elect to exempt property that is specified under subsection (d)."
at end.
Pub. L. 109-8, Sec. 224(a)(1)(A)(iv), redesignated par. (2) as
(3) and inserted introductory provisions.
Subsec. (b)(3)(A). Pub. L. 109-8, Sec. 308(1), inserted "subject
to subsections (o) and (p)," before "any property".
Pub. L. 109-8, Sec. 307(1), substituted "730 days" for "180 days"
and "or if the debtor's domicile has not been located at a single
State for such 730-day period, the place in which the debtor's
domicile was located for 180 days immediately preceding the 730-day
period or for a longer portion of such 180-day period than in any
other place" for ", or for a longer portion of such 180-day period
than in any other place".
Subsec. (b)(4). Pub. L. 109-8, Sec. 224(a)(1)(G), added par. (4).
Subsec. (c)(1). Pub. L. 109-8, Sec. 216(1), added par. (1) and
struck out former par. (1) which read as follows: "a debt of a kind
specified in section 523(a)(1) or 523(a)(5) of this title;".
Subsec. (d). Pub. L. 109-8, Sec. 224(a)(2)(A), substituted
"subsection (b)(2)" for "subsection (b)(1)" in introductory
provisions.
Subsec. (d)(12). Pub. L. 109-8, Sec. 224(a)(2)(B), added par.
(12).
Subsec. (f)(1)(A). Pub. L. 109-8, Sec. 216(2), substituted "a
debt of a kind that is specified in section 523(a)(5); or" for "a
debt -
"(i) to a spouse, former spouse, or child of the debtor, for
alimony to, maintenance for, or support of such spouse or child,
in connection with a separation agreement, divorce decree or
other order of a court of record, determination made in
accordance with State or territorial law by a governmental unit,
or property settlement agreement; and
"(ii) to the extent that such debt -
"(I) is not assigned to another entity, voluntarily, by
operation of law, or otherwise; and
"(II) includes a liability designated as alimony,
maintenance, or support, unless such liability is actually in
the nature of alimony, maintenance or support.; or".
Subsec. (f)(4). Pub. L. 109-8, Sec. 313(a), added par. (4).
Subsec. (g)(2). Pub. L. 109-8, Sec. 216(3), substituted
"subsection (f)(1)(B)" for "subsection (f)(2)".
Subsec. (n). Pub. L. 109-8, Sec. 224(e)(1), added subsec. (n).
Subsec. (o). Pub. L. 109-8, Sec. 308(2), added subsec. (o).
Subsecs. (p), (q). Pub. L. 109-8, Sec. 322(a), added subsecs. (p)
and (q).
2000 - Subsec. (c)(4). Pub. L. 106-420 added par. (4).
1994 - Subsec. (b). Pub. L. 103-394, Sec. 501(d)(12)(A),
substituted "Federal Rules of Bankruptcy Procedure" for "Bankruptcy
Rules".
Subsec. (d)(1) to (6). Pub. L. 103-394, Sec. 108(d)(1)-(6),
substituted "$15,000" for "$7,500" in par. (1), "$2,400" for
"$1,200" in par. (2), "$400" and "$8,000" for "$200" and "$4,000",
respectively, in par. (3), "$1,000" for "$500" in par. (4), "$800"
and "$7,500" for "$400" and "$3,750", respectively, in par. (5),
and "$1,500" for "$750" in par. (6).
Subsec. (d)(8). Pub. L. 103-394, Sec. 108(d)(7), substituted
"$8,000" for "$4,000".
Subsec. (d)(10)(E)(iii). Pub. L. 103-394, Sec. 501(d)(12)(B),
substituted "or 408" for "408, or 409" and "Internal Revenue Code
of 1986" for "Internal Revenue Code of 1954 (26 U.S.C. 401(a),
403(a), 403(b), 408, or 409)".
Subsec. (d)(11)(D). Pub. L. 103-394, Sec. 108(d)(8), substituted
"$15,000" for "$7,500".
Subsec. (f)(1). Pub. L. 103-394, Secs. 303(3), 310(1), designated
existing provisions as par. (1) and inserted "but subject to
paragraph (3)" after "waiver of exemptions" in introductory
provisions. Former par. (1) redesignated subpar. (A) of par. (1).
Subsec. (f)(1)(A). Pub. L. 103-394, Secs. 303(2), 304(d),
redesignated par. (1) as subpar. (A) of par. (1) and inserted ",
other than a judicial lien that secures a debt -
"(i) to a spouse, former spouse, or child of the debtor, for
alimony to, maintenance for, or support of such spouse or child,
in connection with a separation agreement, divorce decree or
other order of a court of record, determination made in
accordance with State or territorial law by a governmental unit,
or property settlement agreement; and
"(ii) to the extent that such debt -
"(I) is not assigned to another entity, voluntarily, by
operation of law, or otherwise; and
"(II) includes a liability designated as alimony,
maintenance, or support, unless such liability is actually in
the nature of alimony, maintenance or support."
Subsec. (f)(1)(B). Pub. L. 103-394, Sec. 303(1), redesignated
par. (2) as subpar. (B) of par. (1) and subpars. (A) to (C) of par.
(2) as cls. (i) to (iii), respectively, of subpar. (B) of par. (1).
Subsec. (f)(2). Pub. L. 103-394, Sec. 303(4), added par. (2).
Former par. (2) redesignated subpar. (B) of par. (1).
Subsec. (f)(3). Pub. L. 103-394, Sec. 310(2), added par. (3).
1990 - Subsec. (c)(3). Pub. L. 101-647 added par. (3).
1986 - Subsec. (h)(1). Pub. L. 99-554, Sec. 283(i)(1),
substituted "553 of this title" for "553 of this tittle".
Subsec. (i)(2). Pub. L. 99-554, Sec. 283(i)(2), substituted
"this" for "his" after "subsection (g) of".
1984 - Subsec. (a)(2). Pub. L. 98-353, Sec. 453(a), inserted "or,
with respect to property that becomes property of an estate after
such date, as of the date such property becomes property of the
estate".
Subsec. (b). Pub. L. 98-353, Sec. 306(a), inserted provision that
in joint cases filed under section 302 of this title and individual
cases filed under section 301 or 303 of this title by or against
debtors who are husband and wife, and whose estates are ordered to
be jointly administered under Rule 1015(b) of the Bankruptcy Rules,
one debtor may not elect to exempt property listed in paragraph (1)
and the other debtor elect to exempt property listed in paragraph
(2) of this subsection, but that if the parties cannot agree on the
alternative to be elected, they shall be deemed to elect paragraph
(1), where such election is permitted under the law of the
jurisdiction where the case is filed.
Subsec. (c). Pub. L. 98-353, Sec. 453(b), amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as follows: "Unless
the case is dismissed, property exempted under this section is not
liable during or after the case for any debt of the debtor that
arose, or that is determined under section 502 of this title as if
such claim had arisen before the commencement of the case, except -

"(1) a debt of a kind specified in section 523(a)(1) or section
523(a)(5) of this title; or
"(2) a lien that is -
"(A) not avoided under section 544, 545, 547, 548, 549, or
724(a) of this title;
"(B) not voided under section 506(d) of this title; or
"(C)(i) a tax lien, notice of which is properly filed; and
"(ii) avoided under section 545(2) of this title."
Subsec. (d)(3). Pub. L. 98-353, Sec. 306(b), inserted "or $4,000
in aggregate value".
Subsec. (d)(5). Pub. L. 98-353, Sec. 306(c), amended par. (5)
generally. Prior to amendment, par. (5) read as follows: "The
debtor's aggregate interest, not to exceed in value $400 plus any
unused amount of the exemption provided under paragraph (1) of this
subsection, in any property."
Subsec. (e). Pub. L. 98-353, Sec. 453(c), substituted "an
exemption" for "exemptions".
Subsec. (m). Pub. L. 98-353, Sec. 306(d), substituted "Subject to
the limitation in subsection (b), this section shall apply
separately with respect to each debtor in a joint case" for "This
section shall apply separately with respect to each debtor in a
joint case".
EFFECTIVE DATE OF 2005 AMENDMENT
Amendment by Pub. L. 109-8 effective 180 days after Apr. 20,
2005, with amendments by sections 216, 224(a), (e)(1), 307, and
313(a) of Pub. L. 109-8 not applicable with respect to cases
commenced under this title before such effective date, except as
otherwise provided, and amendments by sections 308 and 322(a) of
Pub. L. 109-8 applicable with respect to cases commenced under this
title on or after Apr. 20, 2005, see section 1501 of Pub. L. 109-8,
set out as a note under section 101 of this title.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not
applicable with respect to cases commenced under this title before
Oct. 22, 1994, see section 702 of Pub. L. 103-394, set out as a
note under section 101 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-554 effective 30 days after Oct. 27,
1986, see section 302(a) of Pub. L. 99-554, set out as a note under
section 581 of Title 28, Judiciary and Judicial Procedure.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-353 effective with respect to cases filed
90 days after July 10, 1984, see section 552(a) of Pub. L. 98-353,
set out as a note under section 101 of this title.
ADJUSTMENT OF DOLLAR AMOUNTS
For adjustment of dollar amounts specified in subsecs. (d)(1) to
(6), (8), (11)(D), (f)(3), (4), (n), (p), and (q) of this section
by the Judicial Conference of the United States, see note set out
under section 104 of this title.
(!1) Replaced by 22 U.S.C. 4060(c).

(!2) Replaced by 46 U.S.C. 11108, 11109.

(!3) Replaced by 5 U.S.C. 8346.

(!4) Replaced by 45 U.S.C. 231m.

(!5) Railroad unemployment benefits are covered by 45 U.S.C.
352(e).
(!6) Veterans benefits generally are covered by 38 U.S.C. 3101
[now 5301].

(!7) Replaced by 22 U.S.C. 4060(c).

(!8) Replaced by 5 U.S.C. 8346.

(!9) Replaced by 45 U.S.C. 231m.

(!10) Railroad unemployment benefits are covered by 45 U.S.C.
352(e).
(!11) Veterans benefits generally are covered by 38 U.S.C. 3101
[now 5301].