Bankruptcy Protection For GUNS!

[Joanne98]

Don’t let Goldman and Bank of America repossess all the guns!

At his brand new blog (which you should be checking out) Adam Serwer discusses McDonald v. Chicago and concludes “The gun wars are pretty much over, and the gun rights side won. One wonders when they’ll will figure it out.”

Not so fast. There’s one last battle to be fought. A friend on the hill forwarded me the following. Supported by the NRA, Rep John Boccieri (D-OH) is pushing to allow firearms to be exempt from bankruptcy: “In those states that allow a debtor to use federal exemption law, this provision would prevent a trustee from selling a debtor’s firearms to satisfy the claims of creditors.” This amendment would make it so someone going through bankruptcy can’t have their guns liquidated and sold to pay off their bills.

I am all in if we can sneak “lien stripping” (mortgage cramdown) with it to help with the foreclosure crisis. We’ll be really quiet. Repossessed guns don’t reduce the value of their neighbors’ guns or devastate a municipality’s budget, unlike houses with foreclosures, so we have a good reason to ally. Team-up? The gun lobby gets everything, and I want to see what that’s like.

And if we can get the NRA to go against the banking lobbyists…we just might have a chance.

==== FORWARD =====

Protect 2nd Amendment Rights – Become an Original Cosponsor of The Protecting Gun Owners in Bankruptcy Act of 2010!

**Supported by the National Rifle Association**

Dear Colleague,

In these difficult times, it is vital that Congress maintain individuals’ constitutional property rights. Some property rights are secure; clothing, pets, or crops can be deemed exempt from repossession. Other property rights, however, are ignored, most notably 2nd Amendment rights.

In response, I urge you to join me in becoming an original cosponsor of The Protecting Gun Owners in Bankruptcy Act of 2010. The Protecting Gun Owners in Bankruptcy Act of 2010 will allow consumer bankruptcy debtors to exempt firearms from the claims of creditors. Specifically, the measure would permit firearms held primarily for the personal, family or household use of the debtor to be exempt from the claims of creditors under federal exemption law. In those states that allow a debtor to use federal exemption law, this provision would prevent a trustee from selling a debtor’s firearms to satisfy the claims of creditors.

According to the Congressional Research Service, only 10 states have some form of an explicit exemption for firearms. Everywhere else, gun owners in America facing bankruptcy have no choice but to relinquish the protection secured for them by the U.S. Constitution.

While Congress works to pull our nation out of this economic recession, many people across the nation continue to struggle with depleted savings and increasing financial restraint. Residents of areas hit particularly hard by the recent economic downturn must make hard choices to sustain their families, and are often forced to file bankruptcy. Many times this results in individuals seeing their assets reclaimed and sold to pay off their debt, with creditors paying little regard to their well-being.

That is why I ask you to please join me in standing up for American gun owners. To co-sponsor The Protecting Gun Owners in Bankruptcy Act of 2010, please contact .

Sincerely,

John Boccieri

Member of Congress

http://rortybomb.wordpress.com/2010/06/29/new-legislative-effort-to-get-bankruptcy-exemption-for-guns/

[Hosnon]

1. I think most states have opted out of the federal exemptions.

And most of those states probably already exempt firearms to some degree. In other words, this is likely not a big change.

And if it opens the door for additional bankruptcy reforms, bring it on. The new law is legislative rot-gut.

[ChoppinBroccoli]

6. Irrelevant

I will check with my wife, who is a Bankruptcy attorney right here in Ohio, but I'm virtually certain that all bankruptcies are Federal bankrutpcies, as they all must be filed in Federal court, and are therefore governed by Federal laws. I think this guy is off his rocker to suggest that some States handle bankruptcy exemptions different from others. They're all handled the same, as they are all handled under the same law (Federal law).

[Hosnon]

8. She'll tell you that states have the option to opt out of the federal exemptions.

And use their own.

But you're right that bankruptcy law is federal law and the federal government has exclusive jurisdiction.

[ChoppinBroccoli]

10. You're Right

Ohio is an "opt-out" State, but most of the exemptions closely mirror the federal exemptions. Ohio opting out caused a huge controversy because so many of the exemptions are so crappy (i.e. you only get a $5,000 homestead exemption--WTF?)

Federal law (including bankruptcy law) is just baffling to me. That's why I stick to the State courts. I would like to learn how to do bankruptcies, but that code just makes my head spin. I think I might be too old and/or too immersed in the State law to learn it now.

[Hosnon]

12. My state has opted out as well.

Unfortunately, the federal exemptions are more generous.

[ProgressiveProfessor]

9. Hmmm don't some states have different rules for things like homes and such?

I remember hearing that FL protects houses (homesteading) more that CA does IIRC. Is that bad data or how does that figure in?

[Hosnon]

13. Yes. Florida takes its homestead exemption to the extreme by allowing

unlimited or upwards of $1 million (I can't remember which - although they are effectively the same thing for most people).

Floridians can file, keep their house's equity, and then sell the house post-discharge for $$$. It's a great set up for them. Creditors? Not so much.

[ChoppinBroccoli]

11. I Just Forwarded This Article To My Wife (Who Is An Ohio AAG)

She works in Collections Enforcement (which requires an intimate knowledge of bankruptcy law), and she couldn't believe it. She forwarded it on to a lot of the other attorneys she works with and expects that they will be weighing in with their comments any minute now. Should be entertaining. I'll post what they say.

[Ozymanithrax]

2. Perhaps guns should have free speech rights...

so when they bang out their words,
to make their bullet points,
it would be unconstitutional
to quiet their leaded rhetoric.

[Turbineguy]

3. I'm OK with that.

As long as no measures are taken to reduce foreclosures or bankruptcies.:sarcasm:

[melm00se]

4. this raises a big question:

normally a liquidation under bankruptcy is done via auction under the auspices of the court. Is the court liable if the purchaser of the weapon(s) is, under the state/local/federal law, ineligible to purchase a firearm?

[Historic NY]

5. Guns.....how about my Rolls & Lambo too.

[OneTenthofOnePercent]

7. IMO, if you owe money on item and can't pay it should be repossesed.

Guns aren't THAT expensive.

That being said, if this bill passes and I see bankruptcy imminent I'm buying an MP5 and M16 for $30,000