no fresh start NCLC HOW STATES LET DEBT COLLECTORS PUSH FAMILIES INTO POVERTY STATE PROTECTION OF WAGES NATIONAL CONSUMER LAW CENTER

Transcription

1 NL NTIONL ONSUMER LW ENTER no fresh start HOW STTES LET ET OLLETORS PUSH MILIES INTO POVERTY opyright 2013, National onsumer Law enter, Inc. STTE PROTETION O WGES RI E.. P.R. V.I National onsumer Law enter No resh Start 5 1

2 2013 National onsumer Law enter No resh Start PROTETION O THE MILY R V.I. P.R... RI E

3 2013 National onsumer Law enter No resh Start 5 3 PROTETION O THE MILY HOME (See ppendix on page 12 for specifics on each jurisdiction's rating.) V.I. P.R... RI E

4 2013 National onsumer Law enter No resh Start PROTETION O THE MILY HOUSEHOL GOOS V.I. P.R... RI E

5 PROTETION O MILY NK OUNTS (See ppendix E on page 16 for specifics on each jurisdiction's rating.) RI E.. P.R. V.I. States that protect at least $1200 in bank account States that protect at least $700 in bank account, plus car and household goods worth at least $9000, or that explicitly exempt deposited wages States that protect at least $700 in bank account, plus car and household goods worth total of $7000 States that protect car and household goods worth at least $4000 to $6999, plus at least $300 in bank account States with no protection, or with protection only for specialized types of accounts, or that provide just a wild card of $3999 or less for bank account, household goods, and car 2013 National onsumer Law enter No resh Start 5 5

6 OVERLL RTINGS: THE STRENGTH O STTE 6 5 No resh Start 2013 National onsumer Law enter

7 PROTETIONS OR MILY INNES (Rhode Island) (elaware) (Washington,..) Strong protections in all five categories (not one state meets this standard) airly strong protections in most categories Protections have many gaps and weaknesses Weak protections Extremely weak protections (Puerto Rico) (Virgin Islands) 2013 National onsumer Law enter No resh Start 5 7

8 PPENIX STTE PROTETION O WGES NL s Model amily inancial Protection ct Recommendation: 80 times federal or state minimum wage or 10% of disposable income (15% if weekly disposable income exceeds $1200) STTE MOUNT PROTETE States an Wage Garnishment for Most ebts North arolina ll wages exempt if supporting a family Pennsylvania ll wages exempt for most debts South arolina ll wages exempt Texas ll wages exempt States Preserve 90% of the ebtor s Wages Iowa 90% to 97% of wages, depending on amount of annual earnings Missouri 90% of wages for head of family New Jersey 90% of wages if under 250% of federal poverty level New York 90% of wages earned in the last 60 days, or 30 times state or federal minimum wage (now $7.25) Virgin Islands 90% of wages States Protect Enough Wages So That Paycheck oes Not rop elow the Poverty Level ($ per week for family of four) laska lorida Wisconsin $2970 per month (about $691 per week, which is 95 times the federal minimum wage), if debtor s income is sole support of household irst $750 is exempt if wage earner is head of family ederal poverty amount, based on family size, is exempt States Preserve More of a Worker s Wages than the Minimum Required by ederal Law alifornia 40 times state minimum wage for individual; more if debtor proves higher amount is needed olorado 30 times state minimum wage ($7.78 per hour as of Jan. 1, 2013) onnecticut elaware Hawaii Illinois Maine Massachusetts Minnesota Nebraska Nevada 40 times state or federal minimum wage ($8.25 per hour) 85% of wages ll but 5% of the first $100 in wages, all but 10% of the next $100, and all but 20% of the remainder 85% of wages or 45 times federal minimum wage 75% of wages or 40 times federal minimum wage (for consumer credit transactions) 85% of wages or 50 times the greater of the state or federal minimum wage 75% of wages or 40 times federal minimum wage 85% of wages of head of household 75% of wages or 50 times federal minimum wage 8 5 No resh Start 2013 National onsumer Law enter

9 STTE MOUNT PROTETE States Preserve More of a Worker s Wages than the Minimum Required by ederal Law (continued) New Hampshire New Mexico North akota South akota Tennessee Vermont Virginia Washington West Virginia 50 times federal minimum wage 75% of wages or 40 times federal minimum wage 75% of wages or 40 times federal minimum wage, plus $20 per dependent 80% of wages, or 40 times federal minimum wage plus $25 per dependent, plus $2.50 per week for each dependent child under age 16 85% of wages or 40 times federal minimum wage; if debt arose from consumer credit transaction, more is protected if debtor shows need 75% of wages or 40 times federal minimum wage 75% of wages or 35 times federal minimum wage 80% of wages or 30 times federal minimum wage States Protect Only the ederal Minimum labama rizona rkansas istrict of olumbia Georgia Idaho Indiana Kansas Kentucky Louisiana Maryland Michigan Mississippi Montana Ohio Oklahoma Oregon Puerto Rico Rhode Island Utah Wyoming, but judge can protect more in case of hardship 2013 National onsumer Law enter No resh Start 5 9

10 PPENIX PROTETION O THE MILY R NL s Model amily inancial Protection ct Recommendation: $15,000 car ($25,000 if adapted for disability), plus $10,000 wild card STTE VLUE O R PROTETE States Protect an verage Used ompact ar from Seizure Idaho $7000 Iowa $7000 Kansas $20,000 Louisiana $7500 Massachusetts $7500 Nevada $15,000 Oklahoma $7500 Puerto Rico Rhode Island $12,000 No cap if vehicle used in occupation States Provide t Least $9000 in ombined Exemption for ar and Household Goods istrict of olumbia Indiana $9350 Mississippi $10,000 New Hampshire New Mexico North arolina North akota South arolina Tennessee $10,000 Texas Vermont Wisconsin $10,650 but only if debtor does not claim homestead exemption $4000 car, $1000 wild card, plus up to $7000 in unused exemption for tools, household goods, and certain other items $4000 car plus up to $5000 wild card if debtor does not claim homestead exemption $3500 car plus up to $5000 if debtor does not use homestead exemption $2950 plus up to $7500 wild card $5625 plus up to $5625 wild card $30,000 wild card ($60,000 for a family) that can be applied to household goods, vehicles, and various other items $2500 plus up to $7000 of unused exemptions for other specified personal property $4000 plus up to $12,000 wild card States Protect a ar Worth $5000 to $6999 rizona $6000 olorado $5000 Maine $5000 Maryland No specific protection; $6000 wild card is available but must also cover any household goods over $ No resh Start 2013 National onsumer Law enter

11 STTE VLUE O R PROTETE States Protect a ar Worth $5000 to $6999 (continued) Virginia $6000 Washington West Virginia $5000 Wyoming $5000 $3250 plus $3000 wild card States Protect a ar Worth $1500 to $4999 laska $4050 in car worth not more than $27,000 alifornia $2900 onnecticut lorida Georgia Hawaii $2575 Illinois $2400 Kentucky $2500 Minnesota $4600 Missouri Montana $2500 Nebraska New York $4000 Ohio $3450 Oregon $3000 South akota Utah $3000 $3500 plus $1000 wild card. $1000 plus unused homestead exemption up to $4000, which must also cover any household goods over $1000 $5000 exemption but must also cover household goods and other personal property $3000 plus $600 wild card ($1250 for head of family with additional $350 per dependent minor child) $2400 (tools of trade exemption; must be used for work or commuting). $5000 wild card ($7000 for head of household), but must also cover household goods States Provide No Realistic Protection for the ebtor s ar labama rkansas elaware Michigan New Jersey Pennsylvania Virgin Islands Protects just $3000 total for household goods, car, and tools Only protects car worth $1200, and then only if debtor files bankruptcy; otherwise a $200 exemption ($500 if married or head of household) must cover all personal property Unless debtor files bankruptcy, only protection is a $500 wild card that must cover all property except bedding, clothing, and work tools Protects car worth $1000 but only if used in debtor s principal business or profession Protects just $1000 of real and personal property (plus $1000 for household goods and furniture). Protects just $300 total for household goods, car, and other personal property No protection 2013 National onsumer Law enter No resh Start 5 11

12 PPENIX PROTETION OR THE MILY HOME NL s Model amily inancial Protection ct Recommendation: Median house price STTE HOME EXEMPTION MOUNT States that Protect the amily Home Regardless of Value rkansas (head of household only) istrict of olumbia (head of household only) lorida Iowa Kansas Oklahoma South akota Texas Limit on number of acres, but no dollar cap No dollar cap Limit on number of acres, but no dollar cap Limit on number of acres, but no dollar cap Limit on number of acres, but no dollar cap Limit on number of acres, but no dollar cap Limit on number of acres, but no dollar cap Limit on number of acres, but no dollar cap States that Protect a Median-Priced Home ($211,312) Massachusetts Minnesota Montana $250,000 Nevada $550,000 Rhode Island $500,000 $125,000 (up to $500,000 if recorded homestead declaration) $390,000 ($975,000 if a farm) States Protect a Home Worth $100,000 to $211,311 rizona $150,000 Idaho $100,000 New Hampshire $100,000 North akota $100,000 Ohio $125,000 Vermont $125,000 Washington $125, No resh Start 2013 National onsumer Law enter

13 STTE HOME EXEMPTION MOUNT States Protect a Home etween $50,001 and $99,999 in Value laska $70,900 alifornia olorado onnecticut Maine Mississippi $75,000 Nebraska New Mexico New York South arolina $56,150 Wisconsin $75,000 $75,000, but $100,000 if married; $175,000 for certain elder, disabled, or lowincome debtors $60,000 ($90,000 if elderly or disabled) $75,000 ($125,000 for hospital debt) $47,500, but $95,000 if household includes dependent minor or if debtor or dependent is elder or disabled $60,000, but only for head of household or elder $60,000 ($120,000 if home is jointly owned) $75,000 to $150,000, depending on county States Only Protect a Home Worth $5001 to $50,000 Georgia $21,500 Hawaii Illinois $15,000 Indiana $17,600 Louisiana $35,000 Maryland Missouri $15,000 North arolina Oregon Puerto Rico Tennessee Utah $30,000 Virgin Islands $30,000 Wyoming $20,000 $20,000 ($30,000 if head of household) No homestead exemption, just $6000 wild card $35,000 ($60,000 for certain elders) $40,000 ($50,000 if married) $15,000 (head of family only) $5,000 to $25,000, depending on owner s age, marital status, and minor children States Provide Little or No Protection for the amily Home labama $5000 elaware Kentucky $5000 Michigan $3500 New Jersey Pennsylvania Virginia $500 wild card can be applied to home (head of family only) None West Virginia $5000 $300 wild card $5000 (plus $500 per dependent); $10,000 for elder 2013 National onsumer Law enter No resh Start 5 13

14 PPENIX PROTETION O MILY HOUSEHOL GOOS NL s Model amily inancial Protection ct Recommendation: ll household goods, but creditor can seek court order to seize any item worth over $3,000 STTE MOUNT O PROTETION OR HOUSEHOL GOOS States Protect ll of a ebtor s Necessary Household Goods alifornia onnecticut Hawaii Kansas Louisiana Maine New York Oklahoma ll necessary household goods ll necessary household goods ll necessary household goods ll necessary household goods ll necessary household goods ll household goods and appliances as long as item value does not exceed $200, plus wild card of $400 to $6000 that can be used to protect more expensive items ll household furniture plus stove, refrigerator, and certain other items ll necessary household goods States Protect at Least $10,000 of Household Goods istrict of olumbia Massachusetts $15,000 Minnesota $10,350 Nevada New Hampshire North arolina Ohio $11,525 Texas Washington Wisconsin $12,000 $8,625 plus a wild card of up to $8075 if debtor does not claim homestead exemption $12,000 plus a $1000 wild card $3500 plus a $1000 wild card plus up to $7000 of unused exemptions Up to $14,000 depending on number of dependents and whether debtor claims homestead exemption $30,000 for individual, $60,000 for family $6500 for individual, $13,000 for married persons, plus $3000 wild card States Protect $7000-$9999 of Household Goods Idaho $7500 Indiana Iowa $7000 Mississippi North akota Rhode Island $9600 South arolina $9350, but must also cover motor vehicle $10,000 wild card ($50,000 for elders) but must also cover any motor vehicle $1000, plus $7500 if head of household or $3750 if individual $4500 plus up to $5000 of certain unused exemptions 14 5 No resh Start 2013 National onsumer Law enter

15 STTE MOUNT O PROTETION OR HOUSEHOL GOOS States Protect $7000-$9999 of Household Goods (continued) Tennessee Vermont West Virginia $10,000 wild card but must also cover motor vehicle $2500, plus $400 wild card and up to $7000 of unused exemptions for other specified personal property $8000 (plus $1000 wild card for head of household) States Protect $2,001-$6999 in Household Goods labama $3000 laska $4050 rizona $4000 olorado $3000 lorida $1000 plus unused homestead exemption up to $4000 Georgia $5000 Illinois $4000 Kentucky $3000 Maryland Missouri Montana $4500 New Mexico Oregon $3000 South akota Utah Virgin Islands $3000 Virginia $5000 Wyoming $4000 $1000 plus $6000 wild card $3000 plus $600 wild card (for head of family additional $1250 wild card and $350 per dependent child) urniture and books plus $500 wild card and up to $5000 of unused homestead exemption $5000 wild card ($7000 if head of household), which must also cover any motor vehicle $4000 plus appliances, food, and bedding States Protect lmost None of a ebtor s Household Goods rkansas elaware Michigan $1000 Nebraska $1500 New Jersey Pennsylvania Puerto Rico $850 $200 ($500 if married or head of household), which must cover all personal property Just apparel and bedding, plus $500 wild card, which must cover all personal property except work tools $1000 household furnishings, plus $1000 wild card, which must also cover car, work tools, and other property $300 wild card, which must also cover car, work tools, and other property 2013 National onsumer Law enter No resh Start 5 15

16 PPENIX E PROTETION O MILY NK OUNTS NL s Model amily inancial Protection ct Recommendation: $10,000 in a bank account STTE MOUNT O PROTETION OR MILY NK OUNTS States Protect t Least $1200 in ank ccount Massachusetts $2500 New York Wisconsin $1740 (240 times the minimum wage), and a possible $1000 exemption in lieu of homestead exemption $5000 ($10,000 for married couple) States Protect at Least $700 in ank ccount, Plus ar and Household Goods Worth t Least $9000, or That Explicitly Exempt eposited Wages alifornia istrict of olumbia lorida Hawaii Protects deposited wages Protects $8250 household goods, $2575 vehicle, plus $850 wild card that can be used for bank account Protects deposited wages Protects deposited wages Iowa $1000 (cash, bank accounts, or any other personal property); also exempts $7000 in household goods and vehicle worth $7000 Minnesota Mississippi Montana Nebraska Nevada New Hampshire North arolina Protects deposited wages $10,000 wild card that can cover car, household goods, and money Protects deposited wages Protects deposited wages; also provides $2500 wild card that appears to be available for bank account Protects $400 in bank account, and $1000 wild card is also available; protects car and household goods worth more than $9000; also protects deposited wages $3500 household goods, $4000 motor vehicle, plus $1000 wild card (increased to $5000 if debtor does not claim work tools) that can be applied to bank account $3500 car; $5000 household goods ( plus $1000 more per dependent, up to an additional $4000), plus wild card of $5000 of unused homestead exemption North akota $2950 car, $7500 ($3750 if not head of family) wild card, plus additional $7500 wild card if debtor does not claim homestead exemption Oklahoma Oregon South arolina Tennessee Vermont Protects deposited wages Protects deposited wages; also provides $400 wild card that appears to be available for bank account $5625 for motor vehicle, $4500 household goods, plus $5625 cash or liquid assets if debtor does not claim homestead $10,000 wild card that can be applied to household goods, car, and bank account $700 in bank account; protects $2500 car and $2500 household goods but debtor who does not claim exemption for work tools or crops can exempt $7000 more 16 5 No resh Start 2013 National onsumer Law enter

17 STTE MOUNT O PROTETION OR MILY NK OUNTS States Protect at Least $700 in ank ccount, Plus ar and Household Goods Worth t Least $9000, or That Explicitly Exempt eposited Wages (continued) Washington $200 in bank account; $6500 household goods; $3250 motor vehicle; plus $3000 wild card, of which $500 can be used for bank account West Virginia $1000 in bank account; $2400 motor vehicle; $8000 household goods States Protect at Least $700 in ank ccount, plus ar and Household Goods Worth Total of $7000 onnecticut Indiana New Mexico ll necessary household goods plus $3500 vehicle and $1000 wild card that can be applied to bank account (all necessary household goods plus $3500 vehicle is probably the equivalent of a combined exemption of $7000 so falls within this category) $350 for bank account plus $9350 personal property $4000 motor vehicle, $5000 wild card if debtor does not claim homestead exemption; note that furniture is also exempt so New Mexico rates a high Virginia $5000 wild card for any property, plus $5000 for household goods and $6000 for vehicle States Protect ar and Household Goods Worth at Least $4000 to $6999, plus at Least $300 in ank ccount rizona Georgia Illinois Maine Maryland Missouri Ohio South akota $4000 household goods, $6000 car, but only $300 in bank account and no wild card that can be applied to bank account $5000 wild card for all real and personal property $2400 for motor vehicle, plus $4000 wild card that can be used for bank account and household goods $400 general wild card that can be applied to bank account, plus any household goods worth less than $200 per item and a car worth up to $5000, plus up to $6000 of unused homestead exemption, which that can be applied to household goods $1000 for household goods, plus $6000 wild card that can be applied to bank account $3000 household goods, $3000 car, and $600 wild card that can be applied to bank account Protects $425 in bank account, $3450 motor vehicle, and $11,525 in household goods; no wild card that can be applied to protect more in bank account $7000 wild card ($5000 if not head of family) to cover car, motor vehicle, and bank account 2013 National onsumer Law enter No resh Start 5 17

18 STTE MOUNT O PROTETION OR MILY NK OUNTS States With No Protection, or With Protection Only or Specialized Types of ccounts, or Provide Just a Wild ard of $3999 or Less for ank ccount, Household Goods, and ar labama laska rkansas olorado elaware Idaho Kansas Kentucky Louisiana Michigan $3000 wild card must cover household goods, car, and bank account $1400 ($2200 if sole support of household), but only if individual is not receiving earnings weekly, monthly, or semi-monthly; $4050 car, $4050 household goods $200 ($500 if married or head of household) for all personal property $500 wild card must cover bank accounts and all personal property except bedding, clothing, and work tools $1000 wild card but must cover household goods and vehicle New Jersey $1000 wild card must cover all personal property except clothing and $1000 of household goods and furniture Pennsylvania Puerto Rico Rhode Island Texas Utah Virgin Islands Wyoming $300 exemption must cover all property 18 5 No resh Start 2013 National onsumer Law enter