Feingold Amendment Protects Seniors Feingold Provisions Will Protect Americans 62 and Older From Losing Their Homes When Filing for Bankruptcy Due to Unforseen Events Like Illness February 17, 2005 Washington, D.C. -- U.S. Senator Russ Feingold today introduced an amendment during the Senate Judiciary Committee's mark-up of the bankruptcy bill that will go a long way to providing seniors with the security they deserve when filing for bankruptcy due to unforseen events like illness. Feingold's amendment sets a $75,000 floor for the "homestead exemption" for debtors who are 62 or older. That exemption allows debtors in bankruptcy to protect some or all of the value of their homes from creditors. "In many states, the most important asset exemption legally protects homes from the claims of most creditors. However, this exemption varies widely from state to state," Feingold said. "With the value of homes skyrocketing, people who no longer owe on their homes and who live in states with limited exemptions may lose their homes if they have to file for bankruptcy because of unforeseen events like illness. In many cases, the home may be an elderly individual's only significant asset, representing an entire life savings. Federal law should protect the elderly in states where the homestead exemption is very low." Only two states already have a higher exemption for the elderly. California's regular exemption is $50,000, but it is $150,000 for seniors. Maine's exemption is $35,000, but $70,000 for the elderly. Wisconsin's homestead exemption is $40,000 across the board. Florida and Texas have an unlimited dollar value homestead exemption while many states, like Ohio, have exemptions as low as $5,000. "[Senator Feingold's amendment] would permit older persons to file for bankruptcy, and reduce the risk that they will lose what is very often the primary - if not sole - financial asset they have," said David Certner, Director of Federal Affairs for the American Association of Retired Persons (AARP). "AARP supports this amendment... to provide this modest bankruptcy relief for older Americans."

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