Sec. 5. 14 MRSA §4422, sub-§13, ¶F is enacted to read:

F.__A payment or account under an individual retirement account or similar plan or contract on account of illness, disability, death, age or length of service to the sum of $15,000 or to the extent reasonably necessary for the support of the debtor and any dependent of the debtor, whichever is greater.

SUMMARY

This bill amends the laws that govern what property is exempt from attachment and execution and is exempt for purposes of a bankruptcy proceeding. It increases the exemption for a residence from $12,500 to $25,000 and from $25,000 to $50,000 if minor dependents live with the debtor. It increases the exemption for a motor vehicle from $2,500 to $5,000. It provides that a payment or account under an individual retirement account or similar plan or contract is generally exempt to the sum of $15,000 or to the extent reasonably necessary for the support of the debtor and any dependent of the debtor, whichever is greater. Current law provides that such a payment or account is exempt to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.