Sunday, May 13, 2018

Arizona Governor Ducy Signs Bankruptcy and Guns Reform

Arizona has increased the bankruptcy exemption for firearms to two thousand dollars. Previously, only one gun was allowed as part of a basket of items that were limited to a total of one thousand dollars. From
But people filing for bankruptcy also have a choice to make. Under current Arizona law, they can keep only one shotgun, one rifle or one pistol.

The Republican-controlled Legislature wants to change that. The Senate is one step away from passing a bill allowing bankruptcy filers to keep up to $2,000 worth of weapons - any kind of weapon. The exemption expands to $4,000 for a couple.

"You could own four AR-15s in your household and still fall within that exemption amount," McGuire said.

Supporters says citizens must retain their ability to defend themselves.

"Keeping a cat in every room's not going to do it," Rick Dalton, of the Constitutional Sheriffs and Peace Officers Association, told a House hearing in February.

Advocates also argue a constitutional right is at stake.
HB 2211 passed the House 34-25, with one representative not voting, on February 20, 2018. It passed the Senate, 16 to 12, with two senators not voting on April 5th, 2018.

Arizona Governor Ducey signed HB 2211 into law on 12 April, 2018. The resulting reform exempts from bankruptcy, two thousand dollars worth of firearms.  From

In case you are wondering if you could convert all your wealth into cattle, there are specific exemptions for cattle and horses in the Arizona law.

Every state and the United States have exemptions from bankruptcy that are listed in law. California has two lists. In general, you have to choose one list. You are not allowed to mix items from different lists.

As valuable property that is specifically mentioned in the Bill of Rights, firearms are listed under bankruptcy exemptions in a number of states. From
The Idaho State Exemption permits one Firearm valued at $750 or less. In Iowa, the State Exemption provides for one shotgun, and either one rifle or one musket. There is no dollar value limitation in Iowa.

In Louisiana, the State Exemption limits the Debtor to one firearm with a maximum value of $500. In Mississippi, firearms are included in its State Exemption for Household Goods, which entitles the Debtor to a cumulative total of $10,000, in a laundry list of Household Goods. Included in this list is Firearms, of which the Debtor may claim an Exemption in one Firearm. The State Exemption in Texas provides for two Firearms with no limitation on value.

The remaining States of Montana, Nevada, Ohio, Oklahoma, Oregon, Virginia, and Wisconsin, all have State Exemptions that address Firearms in different permutations. Generally, most State Exemptions for Firearms limit the number of Firearms protected by the Exemption or the aggregate value of the Firearms, or both.
The dollar amounts listed are frozen at the time the law passed. Arizona has no provision to advance the amounts with inflation. If the intent of the legislation is to be maintained, the amounts have to be updated as the value of money falls.

In 1968, 1,000 dollars, adjusted for inflation, would be 7,270 dollars in 2018.

It is not uncommon for a high quality rifle, shotgun or pistol to top $2,000.  That would have been $275 in 1968.

Lawmakers that create exemptions in bankruptcy law for firearms are showing support for the Second Amendment and the right to defense of self and others.

©2018 by Dean Weingarten: Permission to share is granted when this notice and link are included.

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