STATE OF OKLAHOMA

2nd Session of the 53rd Legislature (2012)

HOUSE BILL 2734	By:	Morrissette

AS INTRODUCED

An Act relating to homestead and exemptions; amending 31 O.S. 2011, Section 1.1, which relates to exemptions from process; providing exemption for disabled debtor; adding guideline for court consideration when debtor is disabled; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     31 O.S. 2011, Section 1.1, is amended to read as follows:
Section 1.1  A.  Following the issuance of an execution, attachment, or garnishment, except process to collect a judgment or order for child support or maintenance of children or in cases in which the court has limited or reduced the application of this section pursuant to Section 142.18 of Title 21 of the Oklahoma Statutes, the debtor may file with the court an application requesting a hearing to exempt from such process by reason of undue hardship that portion of any earnings from personal services necessary for the maintenance of a family or other dependents supported wholly or partially by the labor of the debtor.  A debtor with no family or other dependents may not claim an exemption under this section, unless the debtor is disabled as determined by the Social Security Administration.  A hearing on the application shall be set and conducted in the manner provided by Section 1172.2 of Title 12 of the Oklahoma Statutes and subsection C of Section 1174 of Title 12 of the Oklahoma Statutes.
B.  In determining the existence of an undue hardship, the court should consider the income and expenses of the family and other dependents, and the standard of living created by the income and expenses.  The court should also consider the standard of living in relationship to the minimal subsistence needs of the debtor’s family and other dependents, with comparison to the minimal subsistence standards in the community, in regard to basic shelter, food, clothing, personal necessities and transportation.  In the case of a disabled debtor, the court shall consider the standard of living in relationship to the minimal subsistence needs of the debtor, taking into account the additional needs due to the disability of the debtor.  The court should then determine if the lack of the funds sought to be exempt would be an undue hardship by creating less than a minimal level of subsistence.  If deprivation of these earnings would create an undue hardship on a disabled debtor or the debtor and the family or other dependents the debtor supports, the court may:
1.  Order all or a portion of the personal earnings exempt; or
2.  In the case of a continuing earnings garnishment pursuant to Section 1173.4 of Title 12 of the Oklahoma Statutes, exempt all or a portion of the personal earnings withheld within the thirty (30) days preceding the filing of the claim for exemption or modify or stay the garnishment for a period of time not to exceed the remainder of the term of the garnishment.
SECTION 2.  This act shall become effective November 1, 2012.

53-2-8014	EK	12/30/11