Exempts retirement accounts established by not-for-profit corporations from application to the satisfaction of money judgments for bankruptcy purposes.
Summary
Bill A00737 proposes amendments to the civil practice law and rules in New York, specifically aiming to exempt certain accounts established by not-for-profit corporations from being applied to the satisfaction of money judgments in bankruptcy proceedings. This includes retirement accounts such as individual retirement accounts (IRAs), Keogh plans, and other qualified plans under the Internal Revenue Code. The bill seeks to protect these accounts from being seized to satisfy debts in bankruptcy cases, thereby providing a safeguard for individuals involved with not-for-profit organizations.
Impact
If enacted, this bill would alter the current legal framework regarding the treatment of retirement accounts in bankruptcy situations, specifically for not-for-profit corporations. It would ensure that funds in these retirement accounts remain protected from creditors, thereby potentially encouraging more individuals to save for retirement without the fear of losing their savings in bankruptcy. This change could also influence how not-for-profit organizations manage their retirement plans and the financial security of their employees.
Sentiment
The sentiment surrounding Bill A00737 appears to be generally supportive, as it aims to provide additional protections for retirement savings. However, there may be concerns from creditors or those who believe that such exemptions could hinder the ability to collect debts owed. The lack of recorded votes or committee discussions suggests that the bill has not yet faced significant opposition or debate.
Contention
Notable points of contention may arise from creditors who argue that exempting these accounts from judgment satisfaction could limit their ability to recover debts. Additionally, there may be discussions regarding the fairness of such exemptions and whether they disproportionately benefit certain groups over others. Stakeholders in the not-for-profit sector likely support the bill, while those representing creditor interests may oppose it.
Exempts retirement accounts established by not-for-profit corporations from application to the satisfaction of money judgments for bankruptcy purposes.
Defines the term "satisfaction" in relation to the satisfaction of judgments; allows satisfaction of judgments to be filed by affirmation rather than after notarization; increases the time during which attorneys may file satisfaction of judgment from ten to twenty years; clarifies that the twenty-day time limit applicable to filing satisfactions of judgment is measured in business days.
Defines the term "satisfaction" in relation to the satisfaction of judgments; allows satisfaction of judgments to be filed by affirmation rather than after notarization; increases the time during which attorneys may file satisfaction of judgment from ten to twenty years; clarifies that the twenty-day time limit applicable to filing satisfactions of judgment is measured in business days.
Providing for child support orders for unborn children from the date of conception, including the direct medical and pregnancy-related expenses of the mother as a factor in child support orders and providing for an income tax exemption for unborn and stillborn children, requiring courts to consider the value of retirement accounts in certain circumstances, authorizing payment from certain retirement accounts to pay child support arrearages and eliminating the exemption of pension and retirement moneys from claims to fulfill child support obligations.