92 | | - | [(8)] (9) The debtor’s beneficial interest in any trust property that is 32 |
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93 | | - | immune from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts 33 |
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94 | | - | Article. 34 |
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95 | | - | |
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96 | | - | [(9)] (10) With respect to claims by a separate creditor of a husband or 35 HOUSE BILL 322 3 |
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97 | | - | |
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98 | | - | |
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99 | | - | wife, trust property that is immune from the claims of the separate creditors of the husband 1 |
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100 | | - | or wife under § 14.5–511 of the Estates and Trusts Article. 2 |
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101 | | - | |
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102 | | - | (c) (1) (I) In order to determine whether the property listed in subsection 3 |
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103 | | - | (b)(4) and [(5)] (6) of this section is subject to execution, the sheriff shall appraise the 4 |
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104 | | - | property at the time of levy. The sheriff shall return the appraisal with the writ. 5 |
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105 | | - | |
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106 | | - | [(2)] (II) An appraisal made by the sheriff under this [subsection] 6 |
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107 | | - | PARAGRAPH is subject to review by the court on motion of the debtor. 7 |
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108 | | - | |
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109 | | - | [(3)] (III) Procedures will be as prescribed by rules issued by the Court of 8 |
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110 | | - | Appeals. 9 |
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111 | | - | |
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112 | | - | (2) A WRIT OF GARNISHMENT ISSUED FOR A DEPOSIT ACCOUNT OR 10 |
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113 | | - | OTHER ACCOUNT HELD B Y A BANK, CREDIT UNION, TRUST COMPANY , SAVINGS BANK, 11 |
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114 | | - | OR SAVINGS AND LOAN ASSOCIATION OR ANY O F THEIR AFFILIATES O R 12 |
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115 | | - | SUBSIDIARIES SHALL I NSTRUCT THE GARNISHE E THAT, SUBJECT TO ADDITION AL 13 |
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116 | | - | EXEMPTIONS, IT IS TO GARNISH ONLY THE AMOUNT EXCEEDING THE AMOUNT 14 |
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117 | | - | EXEMPTED WITHOUT ELE CTION OF THE DEBTOR . 15 |
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118 | | - | |
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119 | | - | (d) The debtor may not waive, by cognovit note or otherwise, the provisions of 16 |
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120 | | - | subsections (b) and (h) of this section. 17 |
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121 | | - | |
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122 | | - | (e) The exemptions in this section do not apply to wage attachments. 18 |
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123 | | - | |
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124 | | - | (f) (1) (i) In addition to the exemptions provided in subsection (b) of this 19 |
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125 | | - | section, and in other statutes of this State, in any proceeding under Title 11 of the United 20 |
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126 | | - | States Code, entitled “Bankruptcy”, any individual debtor domiciled in this State may 21 |
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127 | | - | exempt the debtor’s aggregate interest in: 22 |
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128 | | - | |
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129 | | - | 1. Personal property, up to $5,000; and 23 |
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130 | | - | |
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131 | | - | 2. Subject to subparagraph (ii) of this paragraph: 24 |
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132 | | - | |
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133 | | - | A. Owner–occupied residential real property, including a 25 |
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134 | | - | condominium unit or a manufactured home that has been converted to real property in 26 |
---|
135 | | - | accordance with § 8B–201 of the Real Property Article; or 27 |
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136 | | - | |
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137 | | - | B. A cooperative housing corporation that owns property that 28 |
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138 | | - | the debtor occupies as a residence. 29 |
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139 | | - | |
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140 | | - | (ii) The exemption allowed under subparagraph (i)2 of this 30 |
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141 | | - | paragraph may not exceed the amount under 11 U.S.C. § 522(d)(1), adjusted in accordance 31 |
---|
142 | | - | with 11 U.S.C. § 104, subject to the provisions of paragraphs (2) and (3) of this subsection. 32 |
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143 | | - | |
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144 | | - | (2) An individual may not claim the exemption under paragraph (1)(i)2 of 33 4 HOUSE BILL 322 |
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145 | | - | |
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146 | | - | |
---|
147 | | - | this subsection on a particular property if: 1 |
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148 | | - | |
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149 | | - | (i) The individual has claimed successfully the exemption on the 2 |
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150 | | - | property within 8 years prior to the filing of the bankruptcy proceeding in which the 3 |
---|
151 | | - | exemption under this subsection is claimed; or 4 |
---|
152 | | - | |
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153 | | - | (ii) The individual’s spouse, child, child’s spouse, parent, sibling, 5 |
---|
154 | | - | grandparent, or grandchild has claimed successfully the exemption on the property within 6 |
---|
155 | | - | 8 years prior to the filing of the bankruptcy proceeding in which the exemption under this 7 |
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156 | | - | subsection is claimed. 8 |
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157 | | - | |
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158 | | - | (3) The exemption under paragraph (1)(i)2 of this subsection may not be 9 |
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159 | | - | claimed by both a husband and wife in the same bankruptcy proceeding. 10 |
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160 | | - | |
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161 | | - | (g) In any bankruptcy proceeding, a debtor is not entitled to the federal 11 |
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162 | | - | exemptions provided by § 522(d) of the federal Bankruptcy Code. 12 |
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163 | | - | |
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164 | | - | (h) (1) In addition to the exemptions provided in subsections (b) and (f) of this 13 |
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165 | | - | section and any other provisions of law, any money or other assets payable to a participant 14 |
---|
166 | | - | or beneficiary from, or any interest of any participant or beneficiary in, a retirement plan 15 |
---|
167 | | - | qualified under § 401(a), § 403(a), § 403(b), § 408, § 408A, § 414(d), or § 414(e) of the United 16 |
---|
168 | | - | States Internal Revenue Code of 1986, as amended, or § 409 (as in effect prior to January 17 |
---|
169 | | - | 1984) of the United States Internal Revenue Code of 1954, as amended, shall be exempt 18 |
---|
170 | | - | from any and all claims of the creditors of the beneficiary or participant, other than claims 19 |
---|
171 | | - | by the Maryland Department of Health. 20 |
---|
172 | | - | |
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173 | | - | (2) Paragraph (1) of this subsection does not apply to: 21 |
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174 | | - | |
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175 | | - | (i) An alternate payee under a qualified domestic relations order, as 22 |
---|
176 | | - | defined in § 414(p) of the United States Internal Revenue Code of 1986, as amended; 23 |
---|
177 | | - | |
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178 | | - | (ii) A retirement plan, qualified under § 401(a) of the United States 24 |
---|
179 | | - | Internal Revenue Code of 1986, as amended, as a creditor of an individual retirement 25 |
---|
180 | | - | account qualified under § 408 of the United States Internal Revenue Code of 1986, as 26 |
---|
181 | | - | amended; or 27 |
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182 | | - | |
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183 | | - | (iii) The assets of a bankruptcy case filed before January 1, 1988. 28 |
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184 | | - | |
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185 | | - | (3) The interest of an alternate payee in a plan described under paragraph 29 |
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186 | | - | (1) of this subsection shall be exempt from any and all claims of any creditor of the alternate 30 |
---|
187 | | - | payee, except claims by the Maryland Department of Health. 31 |
---|
188 | | - | |
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189 | | - | (4) If a contribution to a retirement plan described under paragraph (1) of 32 |
---|
190 | | - | this subsection exceeds the amount deductible or, in the case of contribution under § 408A 33 |
---|
191 | | - | of the Internal Revenue Code, the maximum contribution allowed under the applicable 34 |
---|
192 | | - | provisions of the United States Internal Revenue Code of 1986, as amended, the portion of 35 |
---|
193 | | - | that contribution that exceeds the amount deductible or, in the case of contribution under 36 HOUSE BILL 322 5 |
---|
194 | | - | |
---|
195 | | - | |
---|
196 | | - | § 408A of the Internal Revenue Code, the maximum contribution allowed, and any accrued 1 |
---|
197 | | - | earnings on such a portion, are not exempt under paragraph (1) of this subsection. 2 |
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198 | | - | |
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199 | | - | (i) (1) In this subsection, “net recovery” means the sum of money to be 3 |
---|
200 | | - | distributed to the debtor after deduction of attorney’s fees, expenses, medical bills, and 4 |
---|
201 | | - | satisfaction of any liens or subrogation claims arising out of the claims for personal injury, 5 |
---|
202 | | - | including those arising under: 6 |
---|
203 | | - | |
---|
204 | | - | (i) The Medicare Secondary Payer Act, 42 U.S.C. § 1395y; 7 |
---|
205 | | - | |
---|
206 | | - | (ii) A program of the Maryland Department of Health for which a 8 |
---|
207 | | - | right of subrogation exists under §§ 15–120 and 15–121.1 of the Health – General Article; 9 |
---|
208 | | - | |
---|
209 | | - | (iii) An employee benefit plan subject to the federal Employee 10 |
---|
210 | | - | Retirement Income Security Act of 1974; or 11 |
---|
211 | | - | |
---|
212 | | - | (iv) A health insurance contract. 12 |
---|
213 | | - | |
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214 | | - | (2) Twenty–five percent of the net recovery by the debtor on a claim for 13 |
---|
215 | | - | personal injury is subject to execution on a judgment for a child support arrearage. 14 |
---|
216 | | - | |
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217 | | - | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 15 |
---|
218 | | - | apply only prospectively and may not be applied or interpreted to have any effect on or 16 |
---|
219 | | - | application to any writ of garnishment or writ of execution issued before the effective date 17 |
---|
220 | | - | of this Act. 18 |
---|
221 | | - | |
---|
222 | | - | SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 19 |
---|
223 | | - | October 1, 2022. 20 |
---|
| 94 | + | (c) (1) (I) In order to determine whether the property listed in subsection 34 |
---|
| 95 | + | (b)(4) and [(5)] (6) of this section is subject to execution, the sheriff shall appraise the 35 |
---|
| 96 | + | property at the time of levy. The sheriff shall return the appraisal with the writ. 36 HOUSE BILL 322 3 |
---|
228 | | - | Approved: |
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229 | | - | ________________________________________________________________________________ |
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230 | | - | Governor. |
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231 | | - | ________________________________________________________________________________ |
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232 | | - | Speaker of the House of Delegates. |
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233 | | - | ________________________________________________________________________________ |
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234 | | - | President of the Senate. |
---|
| 103 | + | [(3)] (III) Procedures will be as prescribed by rules issued by the Court of 3 |
---|
| 104 | + | Appeals. 4 |
---|
| 105 | + | |
---|
| 106 | + | (2) A WRIT OF GARNISHMENT ISSUED FOR A DEPOSIT ACCOUNT OR 5 |
---|
| 107 | + | OTHER ACCOUNT HELD B Y A BANK, CREDIT UNION, TRUST COMPANY , SAVINGS BANK, 6 |
---|
| 108 | + | OR SAVINGS AND LOAN ASSOCIATION OR ANY O F THEIR AFFILIATES O R 7 |
---|
| 109 | + | SUBSIDIARIES SHALL I NSTRUCT THE GARNISHE E THAT, SUBJECT TO ADDITIONA L 8 |
---|
| 110 | + | EXEMPTIONS, IT IS TO GARNISH ONLY THE AMOUNT EXCEEDING THE AMOUNT 9 |
---|
| 111 | + | EXEMPTED WITHOUT ELE CTION OF THE DEBTOR . 10 |
---|
| 112 | + | |
---|
| 113 | + | (d) The debtor may not waive, by cognovit note or otherwise, the provisions of 11 |
---|
| 114 | + | subsections (b) and (h) of this section. 12 |
---|
| 115 | + | |
---|
| 116 | + | (e) The exemptions in this section do not apply to wage attachments. 13 |
---|
| 117 | + | |
---|
| 118 | + | (f) (1) (i) In addition to the exemptions provided in subsection (b) of this 14 |
---|
| 119 | + | section, and in other statutes of this State, in any proceeding under Title 11 of the United 15 |
---|
| 120 | + | States Code, entitled “Bankruptcy”, any individual debtor domiciled in this State may 16 |
---|
| 121 | + | exempt the debtor’s aggregate interest in: 17 |
---|
| 122 | + | |
---|
| 123 | + | 1. Personal property, up to $5,000; and 18 |
---|
| 124 | + | |
---|
| 125 | + | 2. Subject to subparagraph (ii) of this paragraph: 19 |
---|
| 126 | + | |
---|
| 127 | + | A. Owner–occupied residential real property, including a 20 |
---|
| 128 | + | condominium unit or a manufactured home that has been converted to real property in 21 |
---|
| 129 | + | accordance with § 8B–201 of the Real Property Article; or 22 |
---|
| 130 | + | |
---|
| 131 | + | B. A cooperative housing corporation that owns property that 23 |
---|
| 132 | + | the debtor occupies as a residence. 24 |
---|
| 133 | + | |
---|
| 134 | + | (ii) The exemption allowed under subparagraph (i)2 of this 25 |
---|
| 135 | + | paragraph may not exceed the amount under 11 U.S.C. § 522(d)(1), adjusted in accordance 26 |
---|
| 136 | + | with 11 U.S.C. § 104, subject to the provisions of paragraphs (2) and (3) of this subsection. 27 |
---|
| 137 | + | |
---|
| 138 | + | (2) An individual may not claim the exemption under paragraph (1)(i)2 of 28 |
---|
| 139 | + | this subsection on a particular property if: 29 |
---|
| 140 | + | |
---|
| 141 | + | (i) The individual has claimed successfully the exemption on the 30 |
---|
| 142 | + | property within 8 years prior to the filing of the bankruptcy proceeding in which the 31 |
---|
| 143 | + | exemption under this subsection is claimed; or 32 |
---|
| 144 | + | 4 HOUSE BILL 322 |
---|
| 145 | + | |
---|
| 146 | + | |
---|
| 147 | + | (ii) The individual’s spouse, child, child’s spouse, parent, sibling, 1 |
---|
| 148 | + | grandparent, or grandchild has claimed successfully the exemption on the property within 2 |
---|
| 149 | + | 8 years prior to the filing of the bankruptcy proceeding in which the exemption under this 3 |
---|
| 150 | + | subsection is claimed. 4 |
---|
| 151 | + | |
---|
| 152 | + | (3) The exemption under paragraph (1)(i)2 of this subsection may not be 5 |
---|
| 153 | + | claimed by both a husband and wife in the same bankruptcy proceeding. 6 |
---|
| 154 | + | |
---|
| 155 | + | (g) In any bankruptcy proceeding, a debtor is not entitled to the federal 7 |
---|
| 156 | + | exemptions provided by § 522(d) of the federal Bankruptcy Code. 8 |
---|
| 157 | + | |
---|
| 158 | + | (h) (1) In addition to the exemptions provided in subsections (b) and (f) of this 9 |
---|
| 159 | + | section and any other provisions of law, any money or other assets payable to a participant 10 |
---|
| 160 | + | or beneficiary from, or any interest of any participant or beneficiary in, a retirement plan 11 |
---|
| 161 | + | qualified under § 401(a), § 403(a), § 403(b), § 408, § 408A, § 414(d), or § 414(e) of the United 12 |
---|
| 162 | + | States Internal Revenue Code of 1986, as amended, or § 409 (as in effect prior to January 13 |
---|
| 163 | + | 1984) of the United States Internal Revenue Code of 1954, as amended, shall be exempt 14 |
---|
| 164 | + | from any and all claims of the creditors of the beneficiary or participant, other than claims 15 |
---|
| 165 | + | by the Maryland Department of Health. 16 |
---|
| 166 | + | |
---|
| 167 | + | (2) Paragraph (1) of this subsection does not apply to: 17 |
---|
| 168 | + | |
---|
| 169 | + | (i) An alternate payee under a qualified domestic relations order, as 18 |
---|
| 170 | + | defined in § 414(p) of the United States Internal Revenue Code of 1986, as amended; 19 |
---|
| 171 | + | |
---|
| 172 | + | (ii) A retirement plan, qualified under § 401(a) of the United States 20 |
---|
| 173 | + | Internal Revenue Code of 1986, as amended, as a creditor of an individual retirement 21 |
---|
| 174 | + | account qualified under § 408 of the United States Internal Revenue Code of 1986, as 22 |
---|
| 175 | + | amended; or 23 |
---|
| 176 | + | |
---|
| 177 | + | (iii) The assets of a bankruptcy case filed before January 1, 1988. 24 |
---|
| 178 | + | |
---|
| 179 | + | (3) The interest of an alternate payee in a plan described under paragraph 25 |
---|
| 180 | + | (1) of this subsection shall be exempt from any and all claims of any creditor of the alternate 26 |
---|
| 181 | + | payee, except claims by the Maryland Department of Health. 27 |
---|
| 182 | + | |
---|
| 183 | + | (4) If a contribution to a retirement plan described under paragraph (1) of 28 |
---|
| 184 | + | this subsection exceeds the amount deductible or, in the case of contribution under § 408A 29 |
---|
| 185 | + | of the Internal Revenue Code, the maximum contribution allowed under the applicable 30 |
---|
| 186 | + | provisions of the United States Internal Revenue Code of 1986, as amended, the portion of 31 |
---|
| 187 | + | that contribution that exceeds the amount deductible or, in the case of contribution under 32 |
---|
| 188 | + | § 408A of the Internal Revenue Code, the maximum contribution allowed, and any accrued 33 |
---|
| 189 | + | earnings on such a portion, are not exempt under paragraph (1) of this subsection. 34 |
---|
| 190 | + | |
---|
| 191 | + | (i) (1) In this subsection, “net recovery” means the sum of money to be 35 |
---|
| 192 | + | distributed to the debtor after deduction of attorney’s fees, expenses, medical bills, and 36 |
---|
| 193 | + | satisfaction of any liens or subrogation claims arising out of the claims for personal injury, 37 HOUSE BILL 322 5 |
---|
| 194 | + | |
---|
| 195 | + | |
---|
| 196 | + | including those arising under: 1 |
---|
| 197 | + | |
---|
| 198 | + | (i) The Medicare Secondary Payer Act, 42 U.S.C. § 1395y; 2 |
---|
| 199 | + | |
---|
| 200 | + | (ii) A program of the Maryland Department of Health for which a 3 |
---|
| 201 | + | right of subrogation exists under §§ 15–120 and 15–121.1 of the Health – General Article; 4 |
---|
| 202 | + | |
---|
| 203 | + | (iii) An employee benefit plan subject to the federal Employee 5 |
---|
| 204 | + | Retirement Income Security Act of 1974; or 6 |
---|
| 205 | + | |
---|
| 206 | + | (iv) A health insurance contract. 7 |
---|
| 207 | + | |
---|
| 208 | + | (2) Twenty–five percent of the net recovery by the debtor on a claim for 8 |
---|
| 209 | + | personal injury is subject to execution on a judgment for a child support arrearage. 9 |
---|
| 210 | + | |
---|
| 211 | + | SECTION 2. AND BE IT FURT HER ENACTED, That this Act shall be construed to 10 |
---|
| 212 | + | apply only prospectively and may not be applied or interpreted to have any effect on or 11 |
---|
| 213 | + | application to any writ of garnishment or writ of execution issued before the effective date 12 |
---|
| 214 | + | of this Act. 13 |
---|
| 215 | + | |
---|
| 216 | + | SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 14 |
---|
| 217 | + | October 1, 2022. 15 |
---|
| 218 | + | |
---|