AN
ACT Relating to updating creditor/debtor personal property exemptions; and
amending RCW 6.15.010, 6.15.050, and 6.27.160.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
6.15.010 and 1991 c 112 s 1 are each amended to read as follows:
Except
as provided in RCW 6.15.050, the following personal property shall be exempt
from execution, attachment, and garnishment:
(1)
All wearing apparel of every individual and family, but not to exceed one
thousand dollars in value in furs, jewelry, and personal ornaments for any
individual.
(2)
All private libraries of every individual, but not to exceed fifteen hundred
dollars in value, and all family pictures and keepsakes.
(3)
To each individual or, as to community property of spouses maintaining a single
household as against a creditor of the community, to the community:
(a)
The individual's or community's household goods, appliances, furniture, and
home and yard equipment, not to exceed two thousand seven hundred dollars in
value for the individual or five thousand four hundred dollars for the
community, said amount to include provisions and fuel for the comfortable
maintenance of the individual or community;
(b)
Other personal property, except personal earnings as provided under RCW
6.15.050(1), not to exceed ((one)) two thousand dollars in value,
of which not more than ((one)) two hundred dollars in value may
consist of cash, and of which not more than ((one)) two hundred
dollars in value may consist of bank accounts, savings and loan accounts,
stocks, bonds, or other securities; ((and))
(c)
((Two)) For an individual, a motor ((vehicles)) vehicle
used for personal transportation, not to exceed two thousand five hundred
dollars ((in aggregate value)) or for a community two motor vehicles
used for personal transportation, not to exceed five thousand dollars in
aggregate value;
(d)
Any past due, current, or future child support paid or owed to the debtor,
which can be traced;
(e)
All professionally prescribed health aids for the debtor or a dependent of the
debtor; and
(f)
To any individual, the right to or proceeds of a payment not to exceed sixteen
thousand one hundred fifty dollars on account of personal bodily injury, not
including pain and suffering or compensation for actual pecuniary loss, of the
debtor or an individual of whom the debtor is a dependent; or the right to or
proceeds of a payment in compensation of loss of future earnings of the debtor
or an individual of whom the debtor is or was a dependent, to the extent
reasonably necessary for the support of the debtor and any dependent of the
debtor. The exemption under this subsection (3)(f) does not apply to the right
of the state of Washington, or any agent or assignee of the state, as a lienholder
or subrogee under RCW 43.20B.060.
(4)
To each qualified individual, one of the following exemptions:
(a)
To a farmer, farm trucks, farm stock, farm tools, farm equipment, supplies and
seed, not to exceed five thousand dollars in value;
(b)
To a physician, surgeon, attorney, clergyman, or other professional person, the
individual's library, office furniture, office equipment and supplies, not to
exceed five thousand dollars in value;
(c)
To any other individual, the tools and instruments and materials used to carry
on his or her trade for the support of himself or herself or family, not to
exceed five thousand dollars in value.
For
purposes of this section, "value" means the reasonable market value
of the debtor's interest in an article or item at the time it is selected for
exemption, exclusive of all liens and encumbrances thereon.
Sec.
2. RCW
6.15.050 and 1987 c 442 s 305 are each amended to read as follows:
(1)
Wages, salary, or other compensation regularly paid for personal services
rendered by the debtor claiming the exemption shall not be claimed as exempt
under RCW 6.15.010, but the same may be claimed as exempt in any bankruptcy or
insolvency proceeding to the same extent as allowed under the statutes relating
to garnishments.
(2)
No property may be exempt under RCW 6.15.010 from execution, attachment, or
garnishment issued upon a judgment for all or any part of the purchase price of
the property.
(3)
No property may be exempt under RCW 6.15.010 from legal process issued upon
a judgment for restitution ordered by a court to be paid for the benefit of a
victim of a criminal act.
(4)
No property may be exempt under RCW 6.15.010 from legal process issued upon a
judgment for any tax levied upon such property.
(((4)))
(5) Nothing in this chapter shall be so construed as to prevent a debtor
from creating a security interest in personal property which might be claimed
as exempt, or the enforcement of such security interest against the property.
(((5)))
(6) Nothing in this chapter shall be construed to exempt personal
property of a nonresident of this state or of an individual who has left or is
about to leave this state with the intention to defraud his or her creditors.
(((6)))
(7) Personal property exemptions are waived by failure to claim them
prior to sale of exemptible property under execution or, in a garnishment
proceeding, within the time specified in RCW 6.27.160.
(((7)))
(8) Personal property exemptions may not be claimed by one spouse in a
bankruptcy case that is not a joint case or a joint administration of the
estate with the bankruptcy estate of the other spouse where (a) bankruptcy is
filed by both spouses within a six-month period, and (b) one spouse exempts
property from property of the estate under the bankruptcy exemption provisions
of 11 U.S.C. Sec. 522(d).
(9)
No property may be exempt under RCW 6.15.010 from execution, levy, attachment,
or garnishment issued by or on behalf of a child support agency operating under
Title IV-D of the federal social security act or by or on behalf of any agent
or assignee of the child support agency.
Sec.
3. RCW
6.27.160 and 1988 c 231 s 28 are each amended to read as follows:
(1)
A defendant may claim exemptions from garnishment in the manner specified by
the statute that creates the exemption or by delivering to or mailing by first
class mail to the clerk of the court out of which the writ was issued a
declaration in substantially the following form or in the form set forth in RCW
6.27.140 and mailing a copy of the form by first class mail to the plaintiff or
plaintiff's attorney at the address shown on the writ of garnishment, all not
later than twenty-eight days after the date stated on the writ except that the
time shall be extended to allow a declaration mailed or delivered to the clerk
within twenty-one days after service of the writ on the garnishee if service on
the garnishee is delayed more than seven days after the date of the writ.
[NAME OF COURT]
............................. No.
. . . . .
Plaintiff
.............................
Defendant
CLAIM OF EXEMPTION
.............................
Garnishee
I/We claim the following described property or money as exempt from
execution:
.................................................................
.................................................................
.................................................................
I/We believe the property is exempt because:
.................................................................
.................................................................
.................................................................
............................. ...............................
Print name
Print
name of spouse,
if
married
............................. ...............................
Signature
Signature
............................. ...............................
Address
Address
............................. ...............................
........................ .... ...............................
Telephone number
Telephone
number
............................. ...............................
(2) A
plaintiff who wishes to object to an exemption claim must, not later than seven
days after receipt of the claim, cause to be delivered or mailed to the
defendant by first class mail, to the address shown on the exemption claim, a
declaration by self, attorney, or agent, alleging the facts on which the
objection is based, together with notice of date, time, and place of a hearing
on the objection, which hearing the plaintiff must cause to be noted for a
hearing date not later than fourteen days after the receipt of the claim.
After a hearing on an objection to an exemption claim, the court shall award
costs to the prevailing party and may also award an attorney's fee to the prevailing
party if the court concludes that the exemption claim or the objection to the
claim was not made in good faith. The defendant bears the burden of proving
any claimed exemption, including the obligation to provide sufficient
documentation to identify the source and amount of any claimed exempt funds.
(3)
If the plaintiff elects not to object to the claim of exemption, the plaintiff
shall, not later than ten days after receipt of the claim, obtain from the
court and deliver to the garnishee an order directing the garnishee to release
such part of the debt, property, or effects as is covered by the exemption
claim. If the plaintiff fails to obtain and deliver the order as required or
otherwise to effect release of the exempt funds or property, the defendant
shall be entitled to recover fifty dollars from the plaintiff, in addition to
actual damages suffered by the defendant from the failure to release the exempt
property.
