As a creditor’s lawyer, I’m not sure I like the recent passage of H.R. 5827, which allows a bankrupt debtor to exempt up to $3,000 in value of his “rifle, shotgun, or pistol” collection. The Bankruptcy Law Network explains the possible reasoning behind the law:
“Americans should retain the right to defend themselves with firearms even though they face financial difficulties.”
And, yes, collection attorneys are the intended target of this law. (Pun intended…it’s Friday, people, and I’m blogging about exemptions.)
All kidding aside, bankruptcy and state law “exemptions” are actually the best defense against judgment collections. These laws allow a judgment debtor to protect a limited amount of assets from garnishment or levy by creditors. Assuming he properly claims this exemption (and most state court debtors never do), a debtor can fully protect his $3,000 rifle collection from a Chapter 7 Trustee or a creditor.