Fiscal Note - SB 0359 - Increases Exemption Amounts in Bankruptcy Proceedings
L.R. NO. 1163-03
BILL NO. SB 359
SUBJECT: Bankruptcy Exemptions
TYPE: Original
DATE: February 21, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of State Courts Administrator, the Office of the
Attorney General, and the Department of Revenue assume the proposed
legislation would have no fiscal impact on their agencies.
Officials from the Department of Social Services did not respond to our
fiscal impact request.
Oversight assumes the proposal would have little to no fiscal impact on the
Department of Social Services, as child support awards are not dischargeable
in bankruptcy proceedings. The proposal could result in an increase in the
number of persons who file for bankruptcy, as the exemption amounts would be
increased. Therefore, the Department of Social Services could experience a
delay in the payment of child support collected in certain situations,
however, the overall fiscal impact would likely be minimal.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
Small businesses could be impacted by this proposal as the number of persons
filing for bankruptcy could increase based on the increased exemptions that
would be allowed. The increased exemptions could also result in less funds
available for disbursement to creditors in certain bankruptcy proceedings.
DESCRIPTION
The proposal would increase the caps on personal property, homestead and head
of household exemptions for an individual subject to a bankruptcy proceeding.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Office of State Courts Administrator
Office of the Attorney General
Department of Revenue
NOT RESPONDING: Department of Social Services.
This Fiscal Note is not an official copy and should not be quoted or cited.