Federal

Protecting Gun Owners in Bankruptcy Act of 2023

Source: Congress.gov · 400 words in original text

What This Bill Does

This bill changes bankruptcy law to allow people filing for bankruptcy to protect firearms from being taken to pay off debts. It adds firearms to the list of property that can be exempted (kept safe) in bankruptcy cases. The bill allows debtors to protect up to $3,000 in value of firearms.

Who It Affects

People who file for bankruptcy under federal law and own firearms.

Key Provisions

• People filing for bankruptcy can exempt (protect from creditors) their aggregate interest (total ownership share), not to exceed $3,000 in value, in a single firearm or firearms. (Sec. 2)

What Changes

Bankruptcy law will add firearms to property that debtors can protect when filing for bankruptcy. Currently, bankruptcy law allows people to exempt certain property through alternative provisions. This bill adds firearms to those options, with a $3,000 value limit.

Important Definitions

The bill does not provide explicit definitions. It uses these terms without defining them: "debtor" (a person who owes money), "aggregate interest" (total ownership share), "exempting" (protecting property from creditors), and "estate" (the collection of property and assets someone owns).

Effective Date

The bill takes effect on the date it is enacted (signed into law) and applies only to bankruptcy cases that begin on or after the date of enactment. (Sec. 3)

I 118TH CONGRESS 1ST SESSION H. R. 962 To amend title 11 of the United States Code to include firearms in the types of property allowable under the alternative provision for exempting property from the estate. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 9, 2023 Ms. TENNEY (for herself, Mr. GOSAR, Mr. WEBER of Texas, and Mr. LAM- BORN) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To amend title 11 of the United States Code to include firearms in the types of property allowable under the alternative provision for exempting property from the estate. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Protecting Gun Own- 4 ers in Bankruptcy Act of 2023’’. 5 SEC. 2. EXEMPTIONS. 6 Section 522 of title 11, United States Code, is 7 amended— 8 VerDate Sep 11 2014 05:17 Mar 07, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H962.IH H962 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 962 IH (1) in subsection (d) by adding at the end the 1 following: 2 ‘‘(13) The debtor’s aggregate interest, not to 3 exceed $3,000 in value, in a single firearm or fire- 4 arms.’’; and 5 (2) in subsection (f)(4)(A)— 6 (A) in clause (xiv) by striking ‘‘and’’ at the 7 end; 8 (B) in clause (xv) by striking the period at 9 the end and inserting ‘‘; and’’; and 10 (C) by adding at the end the following: 11 ‘‘(xvi) The debtor’s aggregate interest, not to 12 exceed $3,000 in value, in a single firearm or fire- 13 arms.’’. 14 SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENTS. 15 (a) EFFECTIVE DATE.—Except as provided in sub- 16 section (b), this Act and the amendments made by this 17 Act shall take effect on the date of the enactment of this 18 Act. 19 (b) APPLICATION OF AMENDMENTS.—The amend- 20 ments made by this Act shall apply only with respect to 21 cases commenced under title 11 of the United States Code 22 on or after the date of the enactment of this Act. 23 Æ VerDate Sep 11 2014 05:17 Mar 07, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H962.IH H962 kjohnson on DSK79L0C42PROD with BILLS

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.