[Congressional Record Volume 156, Number 111 (Tuesday, July 27, 2010)]
[Senate]
[Pages S6304-S6305]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LEAHY (for himself, Mr. Feingold, and Mr. Webb):
  S. 3654. A bill to amend title 11 of the United States Code to 
include firearms in the type of property allowable under the 
alternative provision for exempting property from the estate; to the 
Committee on the Judiciary.
  Mr. LEAHY. Mr. President, today I introduce legislation to create an 
express exemption in the Federal Bankruptcy Code for personal firearms.

[[Page S6305]]

Given the place that firearms occupy in our culture for law-abiding 
Americans, I believe it makes sense for the Federal Bankruptcy Code to 
reflect these values. The Supreme Court has confirmed that the Second 
Amendment protects a fundamental right. I agree that the right 
protected by the Second Amendment is ``deeply rooted in this Nation's 
history and tradition.'' One needs to look no further than the woods of 
Vermont in the autumn to know this is true. Amending the Code to 
expressly include this exemption will not only allow more Americans to 
participate in these traditions, but will further the exercise of the 
Second Amendment right itself.
  Under the Bankruptcy Code, debtors are permitted to exempt from the 
bankruptcy estate a wide variety of household goods and other personal 
effects. For example, a debtor using the Federal bankruptcy exemptions 
may exempt furniture, musical instruments, jewelry, and other household 
goods. The code defines ``household goods'' to include items such as 
linens, china, and a television or other entertainment equipment. All 
of this is subject to limitations on monetary value, which is important 
to ensure that the exemptions are not abused to the detriment of 
creditors. The code's list of exemptions is designed to permit a debtor 
to obtain a fresh start in such a way that he or she has the continued 
use of personal items that are both utilitarian and that add to the 
enjoyment of day to day life. I believe many Americans would place 
personal firearms squarely within both of these categories.
  Several States have enacted specific bankruptcy exemptions for 
firearms in their State laws. The Federal exemption I propose would 
leave all of these state exemptions untouched and would only apply if a 
debtor affirmatively chose, where permitted, to use the Federal 
exemptions. The exemption is modeled on the work these states have done 
and takes a modest approach that will nonetheless be meaningful for 
someone using the Federal exemptions. This legislation would permit a 
debtor using the Federal exemptions to at least exempt one rifle, 
shotgun, or pistol, separately or in combination, with an aggregate 
value of $3,000.
  For many Americans, a personal firearm--whether a hunting rifle, a 
family heirloom, or a firearm for self-protection--is an important 
possession. It is one that in many cases may have little significant 
monetary value to creditors. People own firearms for many lawful 
reasons. In many parts of the United States, hunting is an essential 
part of life. In others, people feel strongly about the need to own a 
firearm to help keep themselves and their families safe. For still 
others, firearms have deep historical or sentimental value. The 
Bankruptcy Code should reflect these values.
  Our bankruptcy policy is intended to help those in severe financial 
difficulty regain financial health and repay what they owe to their 
creditors to the extent possible. And in encouraging and helping those 
in bankruptcy to make a new start we are right to do so in a way that 
allows room for the things that give our lives enjoyment and meaning. 
If the amendment made by this legislation makes it possible for a 
parent and child to continue a family hunting tradition or a person to 
retain a piece of family history passed down through generations to 
them, those are good things.
  I hope all Senators will join me in supporting this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3654

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Protecting Gun Owners in 
     Bankruptcy Act of 2010''.

     SEC. 2. EXEMPTIONS.

       Section 522 of title 11, the United States Code, is 
     amended--
       (1) in subsection (d) by adding at the end the following:
       ``(13) The debtor's aggregate interest, not to exceed 
     $3,000 in value, in a single rifle, shotgun, or pistol, or 
     any combination thereof.''; and
       (2) in subsection (f)(4)(A)--
       (A) in clause (xiv), by striking ``and'' at the end;
       (B) in clause (xv), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(xvi) the debtor's aggregate interest, not to exceed 
     $3,000 in value, in a single rifle, shotgun, or pistol, or 
     any combination thereof.''.

     SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

       (a) Effective Date.--Except as provided in subsection (b), 
     this Act and the amendments made by this Act shall take 
     effect on the date of the enactment of this Act.
       (b) Application of Amendments.--The amendments made by this 
     Act shall apply only with respect to cases commenced under 
     title 11, United States Code, on or after the date of the 
     enactment of this Act.
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