Contact: Krista D’Amelio, Director of Government Affairs & Communications, NACBA
Email: krista.damelio@nacba.com

NACBA Reaffirms Commitment to Michigan Families Following Veto of Critical Consumer Protection Legislation

After years of advocacy for HB 4900 and HB 4901, NACBA stands ready to support immediate reintroduction of updated legislation

LANSING, MI — The National Association of Consumer Bankruptcy Attorneys (NACBA) expressed deep disappointment following Governor Gretchen Whitmer’s veto of House Bills 4900 and 4901, long-sought legislation that would have modernized Michigan’s outdated bankruptcy exemption and consumer protection laws.

For more than two years, NACBA has worked alongside Michigan advocates, lawmakers, and consumer protection partners to advance these reforms. HB 4900 and HB 4901 represented a meaningful step toward ensuring that Michigan families facing financial hardship could retain the basic resources they need to remain housed, keep reliable transportation, support their families, and pursue a fresh start.

“These bills reflected the core purpose of consumer protection and bankruptcy law: allowing families in financial distress to retain essential property while they work toward financial recovery. They were about making sure families in crisis are not stripped of the basic tools they need to survive and recover,” said Matthew Mason, NACBA Lead Michigan Legislative Committee Member. “NACBA has fought for these reforms since 2023 because Michigan’s current laws are outdated and because the consequences fall hardest on working families, low-income households, seniors, veterans, and communities already facing economic instability.”

HB 4900 and HB 4901 passed the Michigan Legislature at the end of the 2023-2024 legislative session after extensive advocacy and coalition support. NACBA was a major sponsor of the legislation and continued to support the bills through every stage of the process, including the subsequent litigation over whether the bills should be presented to the Governor.

NACBA and the National Consumer Bankruptcy Rights Center (NCBRC) also filed an amicus brief in the Michigan Supreme Court urging the Court to deny the appellants’ request to hear their appeal, reinforcing the importance of allowing the legislative process to move forward.

The Governor’s veto letter stated that she “stand[s] ready to work with the Legislature to consider new versions.” NACBA welcomes that statement and stands ready to support the immediate introduction of a new version of this legislation for consideration.

“Michigan families cannot afford to wait another decade for basic protections that reflect the realities of today’s economy,” said Richard Nemeth, NACBA President. “The path this legislation took was long and difficult, but the need for reform has not changed. NACBA will not back down.

We are ready to work with legislators, advocates, and the Governor’s office to reintroduce these protections and get them across the finish line.”

Michigan’s exemption laws have lagged behind the real cost of housing, transportation, and daily necessities. Without meaningful updates, families who fall behind on debt can face wage garnishment, seizure of bank account funds, and loss of essential property needed to maintain stability and employment.

NACBA remains committed to ensuring that Michigan’s consumer protection and bankruptcy exemption laws reflect the purpose of the bankruptcy system: to provide honest debtors with a meaningful fresh start.

“This fight is not over,” said Ike Shulman, NACBA Legislative Committee Co-chair. “The veto may have stopped these bills from becoming law this session, but it did not end the movement behind them. NACBA is ready to help bring this legislation back, strengthen it where needed, and continue advocating until Michigan families have the protections they deserve.”

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About NACBA
The National Association of Consumer Bankruptcy Attorneys is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy. NACBA advocates for fair and effective bankruptcy laws that give individuals and families a meaningful opportunity for financial recovery.

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DOWNLOAD GOVERNOR WHITMER'S VETO LETTER

DOWNLOAD NACBA'S 2024 LETTER OF SUPPORT

NACBA Applauds Georgia’s Increase in Bankruptcy Homestead Protections

Years of advocacy culminate in House Bill 1024, which more than doubles the exemption and establishes future inflation adjustments

ATLANTA, GA, June 12, 2026 — The National Association of Consumer Bankruptcy Attorneys (NACBA) applauds the enactment of Georgia House Bill 1024, landmark legislation that more than doubles the amount of home equity Georgia families can protect when seeking bankruptcy relief.

Signed into law by Governor Brian Kemp on May 11, 2026, HB 1024 raises Georgia’s bankruptcy homestead exemption from $21,500 to $50,000 for an individual debtor. For qualifying married couples, the exemption increases from $43,000 to $100,000. The new amounts take effect July 1, 2026.

The legislation amends Georgia Code § 44-13-100, which protects a debtor’s interest in real or personal property used as a residence, a cooperative that owns property used as a residence, or a burial plot.

Beginning July 1, 2031, the exemption will be adjusted annually based on inflation. This provision will help ensure that the protection keeps pace with rising costs and does not again remain frozen at an outdated amount for more than a decade.

Years of NACBA Advocacy Lead to Meaningful Reform

NACBA began advocating for stronger homestead protections in Georgia in 2022. Working alongside its Georgia members, the association continued building support for reform and made important progress during the 2024 legislative session.

Representative Soo Hong began working closely with NACBA on the issue in 2024. She listened to the experiences of consumer bankruptcy attorneys, considered the practical challenges facing Georgia debtors, and recognized the need to modernize the state’s outdated homestead exemption.

NACBA is proud to see that sustained advocacy result in meaningful change in 2026 and extends its sincere appreciation to Representative Hong for her partnership, leadership, and commitment to championing HB 1024 through enactment.

“This victory reflects years of sustained advocacy by NACBA and our members in Georgia,” said Carol Colliersmith, member of NACBA’s Board of Directors, a Georgia consumer bankruptcy attorney, and nationally recognized practitioner. “We began this work in 2022, made important progress in 2024, and are incredibly pleased to see these long-overdue protections enacted in 2026. Representative Soo Hong listened carefully to the concerns of consumer bankruptcy attorneys and understood why updating the homestead exemption was so important for Georgia families. We are deeply grateful for her leadership and determination in carrying this legislation across the finish line.”

Stronger Protections for Georgia Debtors

Georgia does not allow bankruptcy filers to elect the federal exemption system, making the protections available under state law especially consequential.

In a Chapter 7 bankruptcy, the homestead exemption can determine how much equity a debtor may protect and whether the debtor can retain a home. In Chapter 13, the exemption can affect the minimum amount a debtor must repay to unsecured creditors under the liquidation test.

The increase will provide meaningful protection to Georgia families seeking financial stability while preserving the fresh start that bankruptcy is intended to provide. It also better reflects current housing values and the economic realities facing consumers across the state.

For some Georgia families considering bankruptcy, the July 1 effective date could materially affect the amount of home equity they can protect. NACBA encourages consumers to consult with a qualified Georgia bankruptcy attorney regarding their individual circumstances and the timing of any potential filing.

“Bankruptcy exemptions must reflect current economic realities rather than remain frozen at outdated levels,” said Krista D’Amelio, NACBA’s Director of Government Affairs and Communications. “HB 1024 will help preserve housing stability, strengthen the fresh start, and bring greater fairness to Georgia’s bankruptcy system. NACBA was proud to advocate for this reform over several legislative sessions alongside our members in Georgia.”

NACBA also recognizes House sponsors Representatives Matt Reeves and Rob Leverett, Senate sponsor Senator Marty Harbin, Governor Kemp, and the members of the Georgia General Assembly and State Senate who supported the measure.

DOWNLOAD THE LEGISLATION

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About NACBA

The National Association of Consumer Bankruptcy Attorneys is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors. Formed in 1992, NACBA now has more than 1,500 members located in all 50 states and Puerto Rico. NACBA advocates for a fair and accessible bankruptcy system and provides its members with education, resources, professional support, and a unified voice on issues affecting consumer bankruptcy law.

Media Contact:
Krista D’Amelio, Director of Government Affairs & Communications
National Association of Consumer Bankruptcy Attorneys

Krista.damelio@nacba.com

www.NACBA.org                                                             

NCBRC Advocacy Helps Secure Unanimous Supreme Court Victory for Consumer Debtors

Keathley v. Buddy Ayers Construction decision rejects rigid judicial-estoppel rule and reflects the focused appellate advocacy advanced by NCBRC, NACBA, and NCLC

WASHINGTON, D.C., June 12, 2026 — The National Association of Consumer Bankruptcy Attorneys (NACBA) today welcomed the United States Supreme Court’s unanimous decision in Keathley v. Buddy Ayers Construction, Inc., No. 25-6, a significant victory for consumer debtors and a powerful demonstration of the impact of the National Consumer Bankruptcy Rights Center’s appellate advocacy.

Issued on June 11, 2026, the Court’s decision rejected a rigid and punitive approach to judicial estoppel that could prevent honest consumer debtors from pursuing otherwise valid legal claims. Instead, the Court held that whether a debtor’s omission was inadvertent or mistaken must be evaluated under the totality of the circumstances.

The unanimous opinion described the Fifth Circuit’s prior rule as “simultaneously too rigid and too broad,” rejecting an approach that relied on inflexible presumptions rather than a fair examination of the individual facts.

In December 2025, NCBRC, joined by NACBA and the National Consumer Law Center, filed an amicus curiae brief urging the Court to resolve the bad-faith issue narrowly and avoid unnecessarily expanding or deciding debtors’ disclosure obligations.

The Court followed that measured approach.

The Court Recognizes NCBRC’s Advocacy

In footnote 1 of its opinion, the Supreme Court expressly cited the amicus brief submitted by NCBRC, NACBA, and NCLC when declining to decide whether Chapter 13 debtors have a continuing duty to disclose claims arising after the filing of a bankruptcy petition.

The Court stated that the parties had proceeded under the assumption that such a duty existed but emphasized that it would “not opine on whether such a duty exists.” The Court cited the organizations’ amicus brief for its discussion of the split among courts on that question.

That reservation is significant. Rather than adopting a broad rule concerning post-petition disclosure obligations, the Court recognized that the issue remains unsettled and limited its decision to the question properly before it.

NCBRC’s participation ensured that the Court had a complete understanding of the legal landscape and a principled basis for avoiding an unnecessary expansion of debtors’ obligations.

A Meaningful Win for Debtors and the Bankruptcy System

Had the Fifth Circuit’s rule been allowed to stand, consumer debtors could have lost valid claims based on rigid assumptions about their intent, even where an omission was inadvertent or the circumstances demonstrated good faith.

Such outcomes would not only harm debtors. They could also deprive bankruptcy estates and creditors of recoveries that might otherwise become available.

By requiring courts to consider the totality of the circumstances, the Supreme Court preserved a more balanced and fact-specific approach. The decision protects against automatic forfeiture while still allowing courts to address genuine misconduct when the evidence supports it.

The ruling also reflects the importance of strategic appellate advocacy. NCBRC identified the broader risks presented by the case, assembled experienced co-amici, and offered the Court a restrained path that protected debtors without asking the Court to decide more than was necessary.

Why NCBRC’s Work Matters

NCBRC is the only national nonprofit organization dedicated exclusively to protecting the rights of consumer bankruptcy debtors in appellate courts.

Its work includes:

• Filing amicus briefs in cases with nationwide implications for consumer debtors.
• Conducting moot courts and providing strategic support to debtors’ counsel.
• Coordinating appellate advocacy with practitioners and national consumer organizations.
• Monitoring and reporting on developing bankruptcy case law.
• Ensuring that the perspective of consumer debtors is represented before federal appellate courts and the Supreme Court.

The outcome in Keathley demonstrates the real-world impact of that work. NCBRC’s advocacy helped prevent the adoption of a rigid national rule that could have unfairly barred debtors from pursuing valid claims and undermined the equitable administration of bankruptcy cases.

Continued Support Is Essential

High-quality appellate advocacy before the Supreme Court and federal circuit courts requires sustained financial support from the consumer bankruptcy community.

Contributions to NCBRC help the organization participate in high-stakes appeals, provide critical assistance to debtors’ counsel, coordinate amicus efforts, and keep practitioners informed about decisions affecting the fresh start and the integrity of the bankruptcy system.

Supporting NCBRC is a direct investment in protecting consumer debtors, preserving exemptions, promoting fair treatment in the courts, and ensuring that the bankruptcy system continues to serve the families who rely on it.

NCBRC has also published a detailed analysis of the ruling, “Unanimous Supreme Court Adopts Totality-of-the-Circumstances Test for Bankruptcy Judicial Estoppel.”

The Supreme Court opinion and the amicus brief filed by NCBRC, NACBA, and NCLC are available through NACBA and NCBRC.

Opinion and Briefs

Keathley v. Buddy Ayers Construction, Inc. – Supreme Court Slip Opinion (Jackson, J.)

NCBRC/NCLC/NACBA Amici Brief in Support of Petitioner

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About NACBA

The National Association of Consumer Bankruptcy Attorneys is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors. Formed in 1992, NACBA now has more than 1,500 members located in all 50 states and Puerto Rico. NACBA advocates for a fair and accessible bankruptcy system and provides its members with education, resources, professional support, and a unified voice on issues affecting consumer bankruptcy law.

About NCBRC

The National Consumer Bankruptcy Rights Center is a nonprofit organization dedicated to preserving and protecting the rights of consumer bankruptcy debtors in appellate courts. NCBRC provides appellate support, files amicus briefs, conducts moot courts, monitors significant legal developments, and works with attorneys and consumer advocates nationwide.

Media Contact: Krista D’Amelio, Director of Government Affairs & Communications, NACBA

Krista.damelio@nacba.com
www.NACBA.org

DOWNLOAD THE FULL PRESS RELEASE 

NACBA Applauds Passage of Maryland Homestead Exemption Legislation; Commits to Continued Consumer Debtor Reform Advocacy

Annapolis, MD — April 14, 2026 — The National Association of Consumer Bankruptcy Attorneys (NACBA) today applauded the final passage of Senate Bill 939, landmark legislation establishing Maryland’s first state homestead exemption in bankruptcy. The bill now heads to Governor Wes Moore for signature.

Once enacted, effective June 1, 2026, SB 939 will create a $125,000 homestead exemption for Maryland bankruptcy filers, applicable to both single and joint filers, marking a significant advancement in modernizing Maryland’s consumer bankruptcy protections.

NACBA has worked extensively throughout the legislative session in support of Maryland exemption reform and partnered closely with advocates, legislators, and stakeholders to advance protections for Maryland families.

“We are proud to see Maryland take this important step toward modernizing its bankruptcy laws,” said Krista D’Amelio, NACBA Director of Government Affairs. “Creating a meaningful homestead exemption will provide Maryland families with greater housing stability and a stronger opportunity for a true financial fresh start. This is a victory for consumer bankruptcy debtors across the state.”

NACBA extends special thanks to Maryland Legal Aid for its continued partnership and advocacy throughout the legislative process, as well as to Senator Shaneka Henson and Delegate Christopher Tomlinson for their leadership on exemption reform efforts.

While NACBA celebrates the passage of SB 939, the organization noted disappointment that House Bill 1520, broader exemption modernization legislation supported by NACBA, did not advance before the close of session.

HB 1520 would have further modernized Maryland’s outdated exemption framework by increasing protections for household goods, vehicles, tax credits, seniors, and individuals with disabilities. Despite unanimous support in the House Judiciary Committee, the bill ultimately stalled before final passage.

“This year’s progress demonstrates that Maryland lawmakers understand the need to modernize exemption protections, but our work is far from over,” said Richard “Hal” Nemeth, President of NACBA. “The creation of a homestead exemption is a tremendous achievement, but Maryland families still deserve broader protections that reflect today’s economic realities. NACBA will continue working with lawmakers and stakeholders to build on this momentum next session.”

NACBA remains committed to advancing comprehensive bankruptcy reform in Maryland and nationwide to ensure bankruptcy remains a meaningful pathway to financial recovery for working families.

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About NACBA
The National Association of Consumer Bankruptcy Attorneys (NACBA) is the only national organization dedicated to supporting consumer bankruptcy attorneys and protecting the rights of consumer debtors. Formed in 1992, NACBA now has more than 1,500 members located in all 50 states and Puerto Rico.

Contact: Krista D’Amelio, NACBA Director of Government Affairs, krista.damelio@nacba.com

Download the press release

Read the final legislation

Annapolis, MD — March 30, 2026 — The National Association of Consumer Bankruptcy Attorneys (NACBA) today announced continued support for House Bill 1520, legislation aimed at modernizing Maryland’s outdated exemption laws and strengthening financial protections for working families.

HB 1520 passed the Maryland House of Delegates with overwhelming bipartisan support by a vote of 137–0 and has now advanced to the Senate Judicial Proceedings Committee for consideration on March 31st.

NACBA has been actively engaged throughout the legislative process, submitting testimony before both the House Judiciary Committee and the Senate Judicial Proceedings Committee in support of the bill.

The legislation represents a significant step toward updating Maryland’s exemption framework to better reflect current economic realities. As outlined in NACBA’s testimony, the bill includes critical provisions to:

• Increase protections for essential household goods and personal property
• Establish meaningful safeguards for reliable transportation tied to employment and education
• Protect key federal tax credits, including the Child Tax Credit and Earned Income Tax Credit
• Strengthen protections for seniors and individuals living with disabilities

The bill was reported favorably out of the House Judiciary Committee with amendments, which included technical and clarifying changes to definitions and eligibility standards, as well as modifications to certain exemption provisions.

“Modern, fair exemption laws are essential to ensuring that bankruptcy provides a true opportunity for financial recovery,” said Krista D’Amelio, NACBA’s Director of Government Affairs. “HB 1520 helps ensure that Maryland families can maintain stability, preserve essential assets, and rebuild after financial hardship.”

NACBA will continue to work with lawmakers and stakeholders as the bill moves through the Senate and remains committed to advocating for policies that protect consumer debtors and strengthen the bankruptcy system.

About NACBA
The National Association of Consumer Bankruptcy Attorneys (NACBA) is the only national organization dedicated to supporting consumer bankruptcy attorneys and protecting the rights of consumer debtors. Formed in 1992, NACBA now has more than 1,500 members located in all 50 states and Puerto Rico.

Contact: Krista D’Amelio, NACBA Director of Government Affairs, krista.damelio@nacba.com

Click here to download the full press release

Click here to track the legislation's progress 

Kevin Corkran Named Recipient of NACBA’s Henry J. Sommer Legal Aid Scholarship

Washington, D.C. — The National Association of Consumer Bankruptcy Attorneys (NACBA) is proud to announce Kevin Corkran, Staff Attorney in the Consumer and Bankruptcy Units at the Volunteer Lawyers Project of the Boston Bar Association, as the recipient of the Henry J. Sommer Legal Aid Scholarship for NACBA’s 34th Annual Convention in Boston, Massachusetts.

The Henry J. Sommer Legal Aid Scholarship is awarded to a legal aid attorney who is attending a NACBA educational program for the first time. The scholarship was established in recognition of the extraordinary contributions of President Emeritus Henry J. Sommer, who served on NACBA’s Board of Directors from 1992 to 2011 and as President from 2005 to 2008. The scholarship supports legal aid attorneys seeking to deepen their expertise in consumer bankruptcy law.

Corkran serves as a Staff Attorney with the Volunteer Lawyers Project (VLP), where he represents indigent clients facing debt collection actions and works to connect individuals in need with pro bono attorneys for bankruptcy representation. During his first year with the organization, Corkran has taken more than 40 cases to trial through VLP’s court clinics, helping secure over $100,000 in debt relief for clients. He has also negotiated dozens of settlements to prevent interest from compounding on judgments and updated pro bono training materials to better prepare volunteer attorneys assisting low-income consumers.

“Attending the NACBA Convention will allow me to deepen my knowledge of bankruptcy law and build connections with practitioners dedicated to consumer advocacy,” Corkran wrote in his application. “With the materials and training NACBA provides, I will be better equipped to serve our clients and mentor the interns and volunteers who support our work.”

NACBA President Richard “Hal” Nemeth praised Corkran’s dedication to legal aid and consumer protection.

“Kevin Corkran represents the very spirit of the Henry J. Sommer Scholarship—an attorney committed to expanding access to justice and strengthening the capacity of legal aid organizations to serve vulnerable consumers,” said Nemeth. “His advocacy on behalf of low-income clients and his dedication to building deeper expertise in bankruptcy law will have a lasting impact on the individuals and families he serves. NACBA is proud to support his professional development and to welcome him to the Convention.”

One of the aspects of Corkran’s work he finds most rewarding is teaching and mentoring interns. By attending the NACBA Convention, he hopes to bring new knowledge and practical training back to his office so that both staff and volunteers are better equipped to assist consumers navigating financial hardship.

NACBA congratulates Kevin Corkran on this well-earned honor and looks forward to welcoming him to the 34th Annual Convention in Boston.

For more information about NACBA and the Henry J. Sommer Legal Aid Scholarship, please visit: https://nacba.org/page/awards

Media Contact:
Krista D’Amelio
Director of Government Affairs and Communications: Krista.damelio@nacba.com

Download the full press release

We are proud to share that this important decision was secured by NACBA Vice President Jenny Doling.

What the Case Was About

The debtor had borrowed $331,500 from his former in-laws to fund his education, including both:

• Pre-medical undergraduate coursework, and

• Medical school expenses.

The bankruptcy court concluded that only the portion of the loan used for medical school expenses qualified as a nondischargeable “qualified education loan,” and entered judgment excepting approximately $266,876 from discharge.

Both sides appealed.

The Appellate Panel’s Holding

The Ninth Circuit BAP reversed, holding that:

• Section 523(a)(8)(B) applies only to loans that meet the statutory definition of a “qualified education loan.”

• Under the Internal Revenue Code, a qualified education loan must be incurred solely to pay qualified higher education expenses.

• Because the loan at issue was incurred for both qualified and non-qualified expenses, it was a mixed-use loan.

• The Bankruptcy Code does not permit a court to partially except a private student loan from discharge if the loan does not fully satisfy the statutory definition.

As the panel emphasized, the statute does not authorize courts to partition a loan and except only the portion used for qualifying expenses. 

The result: the entire loan was discharged.

Why This Matters

This decision reinforces several important principles for consumer bankruptcy practitioners:

• Exceptions to discharge are construed narrowly.

• Private student loans must strictly satisfy the statutory requirements to qualify for nondischargeability.

• Mixed-use loans that exceed or include non-qualified expenses may be fully dischargeable.

For NACBA members handling private student loan litigation, this opinion provides persuasive authority supporting a strict interpretation of § 523(a)(8)(B) and the “solely” requirement embedded in the statutory framework.

We extend congratulations on this meaningful appellate victory and thank our Vice President for continuing to advance strong consumer protections in the courts.

CLICK HERE TO READ PEARSON V. NICHOLS

Michigan Court of Appeals Reinforces Legislative Duty, Paving the Way for Homestead Exemption Updates

Washington, D.C. — The National Association of Consumer Bankruptcy Attorneys (NACBA) is encouraged by a recent Michigan Court of Appeals ruling that reaffirmed a core constitutional principle: once both chambers of the Legislature approve a bill, it must be presented to the Governor for signature. The decision, issued on October 27, 2025, in Senate Majority Leader v. House of Representatives (Case No. 374786), arose after the House withheld nine duly enacted bills from the Governor during the 2024-2025 legislative session. The Court concluded that this action violated the Michigan Constitution’s presentment requirement, which requires all passed legislation to be promptly transmitted to the Governor for consideration.

Among the nine bills impacted by the decision is House Bill 4901 (HB 4901). This legislation, strongly advocated for by NACBA, would modernize Michigan’s outdated bankruptcy exemption laws—including critical updates to the state’s homestead exemption.

While the ruling does not mark the end of the case, it represents a significant victory for legislative integrity and Michigan consumers. The next step could be an appeal to the Michigan Supreme Court by the House of Representatives. If no appeal is filed, the Court of Claims will hold additional proceedings to determine how and when the bills are transmitted to the Governor. NACBA will continue to advocate for the prompt delivery of HB 4901 to Governor Whitmer for signature and for the enactment of these long-overdue updates to consumer debtor protections.

“This opinion reinforces the constitutional balance of power and ensures that the will of the Legislature cannot be stalled by procedural maneuvers,” said Richard Nemeth, NACBA President. “It’s an important win for fairness, transparency, and the integrity of our democratic process.”

NACBA extends its appreciation to the National Consumer Bankruptcy Rights Center (NCBRC) and the National Consumer Law Center (NCLC) for their vital support in this appeal, including joining in the filing of an amicus brief emphasizing the Legislature’s constitutional duty to deliver passed legislation to the Governor.

Background on HB 4901

HB 4901, which passed the Michigan Senate in December 2024 after an intense 29-hour session, represents the most comprehensive modernization of the state’s bankruptcy exemption laws in more than two decades.

Key provisions include:

• Homestead Exemption: Increases from $30,000 to $125,000 per debtor, or $200,000 for those who are disabled or age 65 and older.
• Motor Vehicle Exemption: Raises from $2,775 to $15,000 per debtor.
• Tools of the Trade: Expands from $2,000 to $10,000 per debtor.
• Crime Victim Payments: Establishes a new exemption for payments to victims or their dependents.
• Inflation Adjustment: Introduces automatic triennial inflation updates to all exemption amounts.

“These reforms will make a meaningful difference for Michigan families trying to keep their homes, vehicles, and essential assets after financial hardship,” said Krista D’Amelio, NACBA Director of Government Affairs. “While this is not yet a final victory, it’s a huge step forward for Michigan consumers.”

NACBA extends its appreciation to NACBA Michigan members Matt Mason and Alexander Berry-Santoro for their critical work on this appeal, and to Kurt O’Keefe and other members for their legislative advocacy.

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About NACBA
The National Association of Consumer Bankruptcy Attorneys (NACBA) is the only national association dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors. Founded in 1992, NACBA has been at the forefront of legislative advocacy, educational programming, and professional support for its members.

Media Contact
Krista D’Amelio, NACBA Director of Government Affairs & Communications: krista.damelio@nacba.com

DOWNLOAD NACBA'S PRESS RELEASE HERE

DOWNLOAD THE FULL MI COURT OF APPEALS OPINION HERE 

Springfield, IL – On August 1, 2025, Illinois officially enacted Public Act 1738, legislation that updates the state’s personal property and homestead exemptions, offering modest but meaningful relief for consumer bankruptcy debtors across Illinois.

Public Act 1738 increases the homestead exemption from $15,000 to $50,000 for a single individual and to $100,000 when two or more individuals own the property. These changes aim to provide stronger protections for homeowners facing financial hardship. This legislation takes effect on January 1, 2026.

The new law also updates other key personal property exemptions, including:

• Raising the motor vehicle exemption from $2,400 to $3,600;
• Increasing the exemption for implements, professional books, or tools of the debtor’s trade from $1,500 to $2,250.

In addition, Public Act 1738 introduces an automatic exemption for judgment debtors in consumer debt cases. This provision grants an automatic $1,000 exemption in a debtor's equity interest held in checking, savings, or credit union accounts for judgments entered on or after January 1, 2020. This $1,000 is considered part of the debtor’s existing $4,000 personal property exemption. The law takes effect on January 1, 2026.

The National Association of Consumer Bankruptcy Attorneys (NACBA) spent nearly two years negotiating this bill and worked in close partnership with Legal Action Chicago to secure these protections.

“While these increases are modest, they represent a step in the right direction for Illinois families,” said Krista D’Amelio, NACBA Director of Government Affairs. “We know these changes will benefit many consumer bankruptcy debtors, and NACBA remains committed to advocating for stronger protections that help individuals achieve a true fresh start and retain the essential personal property they need to do so.”

About NACBA
The National Association of Consumer Bankruptcy Attorneys (NACBA) is the only nationwide organization dedicated to serving the needs of consumer bankruptcy attorneys and their clients. Founded in 1992, NACBA has been at the forefront of legislative advocacy, educational programming, and professional support for its members.

NACBA Applauds Enactment of North Carolina Law Expanding Bankruptcy Protection for 529 College Savings Plans and ABLE Accounts

Washington, D.C. – The National Association of Consumer Bankruptcy Attorneys (NACBA) commends Governor Josh Stein and the North Carolina General Assembly for the enactment of Session Law 2025-46, a landmark bill that significantly expands the protection of education and disability savings accounts in bankruptcy.

Signed into law on July 1, 2025, the legislation exempts funds held in qualified 529 education savings accounts and 529A ABLE accounts from creditor claims and bankruptcy estates when used for permitted purposes. These protections apply regardless of whether the funds are retained in the accounts or withdrawn to pay qualifying expenses. This represents a substantial improvement over the state’s prior exemption structure, which capped protections at $25,000 and left families exposed to potential asset loss during financial distress.

“NACBA is proud to have supported this critical consumer protection measure,” said NACBA Legislative Co-Chair, Edward Boltz. “North Carolina families who prioritize saving for their children’s education or for individuals with disabilities should not be punished in bankruptcy for doing the right thing. This law ensures those hard-earned funds are shielded from creditors, providing dignity and opportunity for generations to come.”

The new exemption, codified at N.C. Gen. Stat. § 1C-1601.5, is effective for all cases filed on or after September 1, 2025. It brings North Carolina in line with a growing number of states that fully protect these tax-advantaged accounts.

NACBA expresses its sincere gratitude to the bill’s primary sponsors of the original legislation (S.B. 101) Senator Dana Jones and former Senator Paul Newton  and to the other legislative champions who co-sponsored this important reform including   Majority Leader Michael Lee  and Senator Amy Galey.  Their leadership affirms that protecting vulnerable families is not a partisan issue.

This legislative achievement reflects the momentum of a broader effort in North Carolina to update outdated exemptions. NACBA and its members collaborated with stakeholders in the North Carolina Bar Association (NCBA) Bankruptcy Section, whose recent survey showed overwhelming support for modernizing outdated exemption laws. For example, nearly 90% of respondents favored increasing protections for college savings plans—an endorsement that strongly informed NACBA’s advocacy on this issue.

The enactment of this targeted exemption reform also highlights the broader need to revisit and modernize North Carolina’s entire exemption framework. The state’s homestead exemption, last adjusted in 2009, now protects less than 10% of the median single-family home value—down from 22% at the time of its last increase. Similarly, exemptions for vehicles, household goods, and tools of the trade have failed to keep pace with inflation and the realities of modern living. NACBA urges the General Assembly to consider comprehensive updates that reflect current economic conditions and ensure that bankruptcy continues to provide a true fresh start for working families  and small business owners across North Carolina.

“This is hopefully just the beginning,” said North Carolina bankruptcy attorney Hector Quesada. “With this success, we hope to build momentum toward comprehensive exemption reform in North Carolina—ensuring that protections  in bankruptcy for consumers’ homes, vehicles,  and other property necessary for a fresh start reflect today’s economic realities, not those of two decades ago.”
For more information about NACBA’s advocacy efforts and upcoming exemption reform initiatives, please visit www.nacba.org.

Contact:
Krista D’Amelio
Director of Government Affairs & Communications
National Association of Consumer Bankruptcy Attorneys
krista.damelio@nacba.com | 800.499.9040

DOWNLOAD THE FULL PRESS RELEASE

Media Contact: Krista D’Amelio, Director of Government Affairs & Communications, krista.damelio@nacba.org

NACBA Applauds Introduction of H.R. 4444: The Student Loan Bankruptcy Improvement Act of 2025

Washington, D.C. — The National Association of Consumer Bankruptcy Attorneys (NACBA) proudly announces its strong support for H.R. 4444, the Student Loan Bankruptcy Improvement Act of 2025, introduced by Congressman J. Luis Correa (CA-46). This vital legislation takes long-overdue action to restore fairness and access to justice for millions of Americans burdened by student loan debt.

For decades, the “undue hardship” standard, particularly as interpreted through the outdated Brunner test, has made it virtually impossible for borrowers to discharge student loans in bankruptcy. Enacted in an era when student loan debt averaged around $5,200 (adjusted to $14,000 in today’s dollars), the Brunner standard has not kept pace with economic realities. In contrast, today's borrowers carry an average of over $37,000 in student loan debt.

"The existing legal standard is not only outdated—it’s unjust," said Richard Nemeth, President of NACBA. "Only 0.01% of student loan borrowers succeed in discharging their loans through bankruptcy under the current rules. That is a system that’s fundamentally broken."

H.R. 4444 addresses this crisis by amending Section 523(a)(8) of the U.S. Bankruptcy Code to remove the word “undue” from the hardship standard. This change would allow judges to apply a more reasonable and modern evaluation of a debtor’s financial condition, one that reflects current economic challenges while upholding key protections against abuse.

The legislation preserves existing safeguards, including means testing, asset limits, and oversight under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. By maintaining these protections, the bill balances debtor relief with responsible guardrails, reducing concerns over moral hazard.

According to recent data from the Federal Reserve and the U.S. Department of Education, more than six million federal student loan borrowers are over 90 days delinquent, many at risk of default, wage garnishment, and long-term financial ruin. Without reform, these individuals remain locked out of the very system designed to offer a second chance.

“This bill restores the core promise of bankruptcy—a fresh start for the honest but unfortunate debtor,” said Nemeth. “NACBA is proud to support this legislation and urges swift passage in Congress.”

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About NACBA

The National Association of Consumer Bankruptcy Attorneys (NACBA) is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and the clients they represent. Since its founding in 1992, NACBA has worked to preserve and protect the rights of consumer debtors in bankruptcy and to ensure fair, effective access to the bankruptcy courts. NACBA advocates for policies that support meaningful debt relief and a financial fresh start for millions of Americans.

Read NACBA’s Official Letter of Support for H.R. 4444, Sent to Rep. Correa

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Media Contact: Krista D’Amelio, NACBA Director of Government Affairs & Communications, krista.damelio@nacba.com

NACBA Congratulates Vice President Jenny Doling on Reappointment to the Judicial Conference Advisory Committee on Bankruptcy Rules

Washington, D.C. — The National Association of Consumer Bankruptcy Attorneys (NACBA) proudly announces that Board Vice President Jenny Doling has been reappointed to serve on the Judicial Conference Advisory Committee on Bankruptcy Rules for a full three-year term beginning in October 2025 and concluding in October 2028.

Doling, a nationally respected bankruptcy attorney and a fierce advocate for consumer debtors, was originally appointed to the committee in 2023 to fill the unexpired term of former NACBA Board Member Tara Twomey. Twomey vacated the seat following her appointment as Director of the U.S. Trustee Program. Doling’s initial term was set to conclude in October 2025, but she has been asked to continue in this critical role due to her expertise and ongoing contributions to the committee’s work.

She remains the only consumer bankruptcy attorney serving on the Advisory Committee—a body responsible for evaluating and recommending changes to the Federal Rules of Bankruptcy Procedure. Her continued presence ensures that consumer perspectives remain front and center in national discussions on bankruptcy rulemaking.

“NACBA congratulates Vice President Jenny Doling on her well-deserved reappointment,” said NACBA President Richard Nemeth. “Her commitment to advancing the rights of consumer debtors and her deep understanding of bankruptcy law make her an invaluable voice on the Advisory Committee and within NACBA’s leadership.”

Doling’s reappointment underscores the importance of consumer advocacy at the federal level and highlights her dedication to shaping fair, effective bankruptcy procedures that serve individuals and families facing financial hardship.

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About NACBA
The National Association of Consumer Bankruptcy Attorneys (NACBA) is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in the U.S. For over 30 years, NACBA has provided education, advocacy, and community for attorneys representing individuals and families in financial distress.

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Springfield, IL – May 21, 2025 the Illinois House of Representatives passed Senate Bill 1738, which now heads to Governor JB Pritzker’s desk for signature. This legislation updates Illinois' personal property and homestead exemptions, offering modest but meaningful relief for consumer bankruptcy debtors across the state.

SB 1738 increases the homestead exemption from $15,000 to $50,000 for a single individual and to $100,000 when two or more individuals own the property. These changes aim to provide more robust protections for homeowners facing financial hardship.

The bill also updates other key personal property exemptions, including:

• Raising the motor vehicle exemption from $2,400 to $3,600;
• Increasing the exemption for implements, professional books, or tools of the debtor’s trade from $1,500 to $2,250.

In addition, SB 1738 introduces an automatic exemption for judgment debtors in consumer debt cases. This provision grants an automatic $1,000 exemption in a debtor's equity interest held in checking, savings, or credit union accounts for judgments entered on or after January 1, 2020. This $1,000 is considered part of the debtor’s existing $4,000 personal property exemption. The bill is set to take effect on January 1, 2026.

The National Association of Consumer Bankruptcy Attorneys (NACBA) has spent nearly two years negotiating this bill and is proud to have worked in close partnership with our allies at Legal Action Chicago to bring these protections forward.

“While these increases are modest, they represent a step in the right direction for Illinois families,” said Krista D’Amelio, NACBA Director of Government Affairs. “We know these changes will benefit some consumer bankruptcy debtors, and NACBA remains committed to advocating for stronger protections that help individuals achieve a true fresh start and retain the essential personal property they need to do so.”

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About NACBA

The National Association of Consumer Bankruptcy Attorneys (NACBA) is the only nationwide

organization dedicated to serving the needs of consumer bankruptcy attorneys and their clients.

Founded in 1992, NACBA has been at the forefront of legislative advocacy, educational

programming, and professional support for its members.

Download NACBA's full press release

The National Association of Consumer Bankruptcy Attorneys (NACBA) agrees with and stands in full support of the American Bar Association's statement issued on March 3, 2025, regarding alarming efforts to undermine the courts and the legal profession.

NACBA shares a profound concern over the escalating pattern of governmental actions that threaten the fundamental principles of our democracy, including the independence of the judiciary, the right to counsel, due process, and the freedoms of speech and association. We have seen wide-scale affronts to the rule of law itself, such as attacks on constitutionally protected birthright citizenship, the disappearing of people without due process, the dismantling of government departments including USAID, the Department of Education and the Consumer Financial Protection Bureau, as well as attempts to punish law firms for providing the representation to which every person is entitled and to criminalize those who support lawful programs to eliminate bias and enhance diversity. We reject all attempts to intimidate judges for their rulings, to target lawyers for representing certain clients, or to interfere with the essential work of the legal profession.

Defending judges and courts, acknowledging the role of the courts, adhering to the rule of law, and respecting the separation of powers are cornerstones of our justice system. NACBA members and all lawyers must be free to zealously represent their clients and perform their ethical duties without fear of retribution. We oppose any attempts to prevent or limit parties from having access to the judicial system and courts, including the bankruptcy system and courts, or to interfere in the impartial administration of justice, consistent with the law and our commitment to pro bono service. NACBA firmly supports upholding these principles and condemns any actions that seek to erode them.

NACBA calls upon all members of the legal community, including those in appointed and elected positions, to join us in speaking out against these dangerous trends. We stand for the vital role of our courts, including our bankruptcy courts, and the essential job that lawyers do every day throughout our country in endeavoring to provide access to justice for all. Silence is not an option when the integrity of our courts and the ability of lawyers to fulfill their ethical duties are under threat.

The National Association of Consumer Bankruptcy Attorneys is a non-profit organization of more than 1,500 consumer bankruptcy attorneys nationwide. NACBA advocates nationally in support of issues that cannot adequately be addressed by individual member attorneys. It is the only national association of attorneys organized for the specific purpose of protecting the rights of consumer bankruptcy debtors.

Richard H. Nemeth

President, National Association of Consumer Bankruptcy Attorneys

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Ninth Circuit Victory Confirms Bankruptcy Protections for Social Security Recipients Facing Overpayment Recoupment

March 21, 2025 – Washington, D.C. – In a significant victory for Social Security recipients, the Ninth Circuit Court of Appeals has ruled in Cooper v. Social Security Administration, reinforcing the vital protections that bankruptcy provides for individuals who have been overpaid Social Security benefits. The court held that the Social Security Administration (SSA) cannot bypass bankruptcy discharge protections to recover overpaid benefits from individuals who have not engaged in any wrongdoing.

Debtors' counsel Marc Stern of Seattle, WA played a pivotal role in representing Cooper and other similarly situated Social Security recipients, ensuring that they retain the fresh start that bankruptcy law promises. The case received critical support from Thomas M. Mayer and Nancy Bello of Kramer Levin Naftalis & Frankel LLP in New York, NY, who represented Amici Curiae for the National Consumer Bankruptcy Rights Center (NCBRC) and the National Association of Consumer Bankruptcy Attorneys (NACBA). The ruling confirms that the SSA’s practice of withholding 100% of a recipient’s current benefit payments to recover pre-bankruptcy overpayments is impermissible under bankruptcy law.

“This decision is a lifeline for struggling Social Security beneficiaries who find themselves trapped by government overpayment errors,” said NCBRC President Henry J Sommer. “It ensures that individuals who have filed for bankruptcy are not left impoverished due to administrative mistakes.” NCBRC is a leading advocate for consumer bankruptcy protections. NACBA played an instrumental role in supporting this legal effort, further demonstrating its commitment to protecting the rights of consumer debtors nationwide.

For thousands of Social Security recipients who have received benefit overpayments due to SSA errors, this ruling confirms that bankruptcy remains a viable path to financial relief. Without this protection, vulnerable individuals—many of whom are elderly or disabled—would face the impossible burden of losing their only source of income.

“This ruling sends a clear message: bankruptcy protections work, and they extend to those receiving Social Security benefits,” said NACBA President Richard Nemeth. “We are proud that NACBA and NCBRC could contribute to this major win for consumer debtors and congratulate Attorney Stern on this monumental victory.”

The Ninth Circuit’s decision reverses the lower courts’ rulings, clarifying that equitable recoupment cannot be used to undermine the fresh start that bankruptcy provides. This outcome aligns with the fundamental purpose of the Bankruptcy Code: to grant relief to honest but unfortunate debtors and to prevent them from being subjected to unmanageable financial burdens.

As a result of this ruling, Social Security recipients who have been subjected to aggressive attempts to recover overpayments should consult with bankruptcy attorneys to determine how this decision may impact their cases. NACBA’s National Attorney Finder is a great resource to find a local qualified consumer bankruptcy attorney.

Media contact: Krista D’Amelio, NACBA Director of Government Affairs & Communications: krista.damelio@nacba.com

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About NACBA: The National Association of Consumer Bankruptcy Attorneys (NACBA) is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors. NACBA works tirelessly to promote fair and effective bankruptcy laws, ensuring that Americans burdened by overwhelming debt have access to relief and a fresh start.

About NCBRC: The National Consumer Bankruptcy Rights Center (NCBRC) The National Consumer Bankruptcy Rights Center (NCBRC) is a 501(c)(3) organization dedicated to protecting the integrity of the bankruptcy system and preserving the rights of consumer bankruptcy debtors. Created in 2010, NCBRC was founded by the Board of the National Association of Consumer Bankruptcy Attorneys to provide assistance to consumer debtors and their counsel in cases likely to impact consumer bankruptcy law. NCBRC is dedicated to preserving and advancing the rights of consumer debtors across the United States.

Tiffany Allison Harvey Named NACBA’s Henry J. Sommer Legal Aid Scholarship Recipient

Washington, D.C. – The National Association of Consumer Bankruptcy Attorneys (NACBA) is proud to announce Tiffany Allison Harvey, Senior Consumer Law Attorney at Prairie State Legal Services, Inc. in Waukegan, IL, as the recipient of the Henry J. Sommer Legal Aid Scholarship for NACBA’s 33rd Annual Convention in Hollywood, CA.

The Henry J. Sommer Legal Aid Scholarship is awarded to a legal aid attorney who is attending a NACBA educational program for the first time. This scholarship honors President Emeritus Henry J. Sommer, who served on NACBA’s Board from 1992 to 2011 and as President from 2005 to 2008, in recognition of his extraordinary contributions to the organization and the field of consumer bankruptcy law.

Ms. Harvey has dedicated nearly 25 years to legal aid at Prairie State Legal Services, focusing on foreclosure defense, homeownership protection, and consumer law advocacy. As a Senior Consumer Law Attorney, she provides legal training, updates, and litigation support across Prairie State’s eleven offices. Harvey has played a critical role in helping homeowners navigate foreclosure, mortgage rescue fraud, property tax issues, and consumer debt challenges.

As Prairie State expands its bankruptcy services, Harvey is preparing to incorporate Chapter 13 bankruptcy into her practice to help homeowners avoid foreclosure and secure housing stability. With Illinois considering legislation to increase the state’s homestead exemption—an effort in which NACBA has been actively engaged—she anticipates a rising demand for bankruptcy representation.

"I have lived around the world of bankruptcy for several years, and am excited to get more formal training in this area," said Harvey. "The NACBA Convention is an excellent opportunity for me to learn about both the nuts and bolts of bankruptcy practice and about how bankruptcy can address current issues.”

Henry J. Sommer himself praised Harvey’s commitment to legal aid and consumer advocacy: "Tiffany’s dedication to protecting homeowners and consumers aligns perfectly with the mission of this scholarship. I congratulate her on this well-deserved recognition and look forward to seeing the impact she will make in the field of consumer bankruptcy law."

NACBA congratulates Tiffany Allison Harvey on this well-earned honor and looks forward to welcoming her to the 33rd Annual Convention, April 24-27, 2025.

For more information about NACBA and the Henry J. Sommer Legal Aid Scholarship, please visit www.nacba.org/awards

Media Contact: Krista D’Amelio, krista.damelio@nacba.com

CLICK HERE to download the full press release

For media inquiries, please contact: Krista D’Amelio, NACBA Director of Government Affairs

Illinois Senate Introduces SB 1738, a Landmark Judgment Exemption Bill

Springfield, IL —On Feb. 5, 2025 State Senator Robert F. Martwick officially filed SB 1738, the highly anticipated judgment exemption bill, in the Illinois Senate. This bill represents the final negotiated version between consumer advocates and the banking and collections industry in Illinois, marking a significant step forward in protecting the financial well-being of Illinois residents.

Key Provisions of SB 1738 Include:

• Homestead Exemption Increase: Raised from $15,000/$30,000 to $50,000/$100,000
• Motor Vehicle & Professional Implements Exemptions: Increased by 50% for both
• Wildcard Exemption: Maintains the $4,000 limit, with modifications related to post-judgment proceedings
• Household Goods Exemption: Expanded significantly to $5,000

“Since 2022, the National Association of Consumer Bankruptcy Attorneys (NACBA) has been actively engaged in negotiations to incorporate stronger homestead exemption language into SB 1738,” said Krista D’Amelio, NACBA’s Director of Government Affairs & Communications. “NACBA’s persistent advocacy and collaborative efforts were instrumental in shaping the final version of the bill, ensuring enhanced protections for homeowners across Illinois. And while we had pushed for a higher exemption, the more than twofold increase represents a meaningful improvement for Illinois homeowners facing financial difficulties.”

CLICK HERE to read the full bill text

CLICK HERE to download NACBA's full press release

Lansing, Michigan —The National Association of Consumer Bankruptcy Attorneys (NACBA) is pleased to announce a significant legislative victory as Michigan’s House Bill 4901 (HB-4901) passed the State Senate in a 21-17 vote after an intense 29-hour session. This milestone marks the culmination of NACBA's legislative efforts for 2024, paving the way for substantial improvements to Michigan's bankruptcy exemption laws. The bill now awaits Governor Gretchen Whitmer’s signature.

HB-4901, alongside its companion bill HB-4900, updates Michigan's outdated exemption laws, last revised over 20 years ago. The changes address rising inflation and provide much-needed relief to Michigan residents struggling with financial insecurity.

Key Highlights of HB-4901:

1. Homestead Exemption: Increases the exemption from $30,000 to $125,000 per debtor in a joint case, or $200,000 per debtor if disabled or aged 65 or older.

2. Motor Vehicle Exemption: Raises the exemption from $2,775 to $15,000 per debtor in a joint case.

3. Tools of the Trade: Expands the exemption from $2,000 to $10,000 per debtor in a joint case.

4. Crime Victim Payments: Introduces a new exemption for payments to crime victims or their dependents.

5. Inflation Adjustment: Establishes a triennial inflation adjustment for all exemptions.

“These updates represent a monumental shift in Michigan’s bankruptcy laws, bringing long-overdue protections to vulnerable individuals and families,” said Krista D’Amelio, NACBA Director of Government Affairs & Communicaitons. “This legislation ensures that Michigan citizens retain the basic assets needed to rebuild their lives.”

NACBA extends its heartfelt gratitude to Michigan members Matt Mason, Kurt O’Keefe and Alexander Berry-Santoro, for their unwavering dedication and tireless advocacy throughout this legislative journey. Their efforts, alongside those of many other NACBA members who contributed their time and expertise, have been instrumental in driving these critical reforms forward. The passage of HB-4901 represents a monumental step toward establishing a more just and equitable system, offering Michigan residents the protections they need to navigate financial hardship with dignity and hope.

The updated exemptions address critical gaps, including protections for retirees, widows, and individuals affected by unforeseen financial crises. Current exemptions were deemed among the nation’s worst by the National Consumer Law Center, contributing to financial hardship for countless Michigan families.

The text of HB-4901 is available for review at: https://www.legislature.mi.gov/documents/2023-2024/billengrossed/House/pdf/2023-HEBS-4901.pdf

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Washington, DC- The National Association of Consumer Bankruptcy Attorneys (NACBA) acknowledges the leadership of Senator Elizabeth Warren and House Judiciary Committee Ranking Member Jerry Nadler, along with the efforts of co-sponsors Senator Sheldon Whitehouse and Representative Pramila Jayapal, for their continued advocacy on behalf of consumer debtors. NACBA is encouraged by their reintroduction of the Consumer Bankruptcy Reform Act, which aims to address longstanding challenges within the bankruptcy system.

NACBA President Richard Nemeth stated, “The Consumer Bankruptcy Reform Act introduces critical discussions about the need for modernizing bankruptcy laws to ensure fairness and efficiency for consumer debtors. NACBA appreciates the effort to tackle these issues and will closely evaluate the bill’s provisions.” Among the improvements are:

• restoring the dischargeability of student loans, a much-needed reform in light of the burden student loan debt places on debtors and the economy;

• reducing the cost and improving the efficiency of bankruptcy relief;

• improving debtors’ ability to retain their homes and modest personal property by creating updated fair federal exemptions; and

• saving homes from foreclosure by properly allowing for the modification of residential mortgages and treating those obligations like other secured debts, where the secured creditors are paid the value of the collateral over time.

As with all comprehensive bankruptcy reform proposals, NACBA is committed to conducting a thorough review of the bill’s many provisions and potential consequences. The association looks forward to providing constructive feedback that reflects the knowledge and experience of its members who work directly with consumer debtors.

President Nemeth added, “NACBA shares Senator Warren and Ranking Member Nadler’s goal of improving the bankruptcy system to better serve those in financial distress and that now is the time to make the improvements to the Bankruptcy Code that have long been needed. We appreciate the dialogue this bill initiates and will remain actively engaged in the process.”

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READ MORE: Nadler, Warren, Lawmakers Renew Push to Make Bankruptcy Less Expensive for Families

August 6, 2024

Delaware HB 318 Signed Into Law, Increasing Bankruptcy and Debt Proceeding Exemptions

Dover, DE— The National Association of Consumer Bankruptcy Attorneys (NACBA) is pleased to announce that Delaware House Bill 318, an Act to Amend Title 10 and Title 19 of the Delaware Code Relating to Exemptions in Bankruptcy and Debt Proceedings, has been signed into law by Governor John Carney on August 2, 2024. This Act significantly increases the exemptions available to debtors in bankruptcy and other debt proceedings, marking a crucial step forward in consumer debtor protection.

Effective January 1, 2025, the amended law raises the exemption for a debtor’s personal residence from $125,000 to $200,000. This adjustment addresses the substantial increase in home prices since the previous limit was set in 2012. Additionally, the Act increases the exemption for tools of the trade and vehicles from $15,000 to $25,000. The legislation also exempts workers’ compensation awards under the laws of other states from attachment in bankruptcy or other proceedings, aligning with protections already in place for Delaware awards.

NACBA’s Director of Government Affairs, Krista D’Amelio, expressed gratitude to NACBA member Vivian A. Houghton, Esq. for her dedicated advocacy in ensuring the passage of this critical legislation. “Vivian’s tireless work and unwavering commitment to protecting consumer debtors in Delaware have been instrumental in achieving this legislative victory. Amid this affordability crisis and the rise in consumer bankruptcies, it is more important than ever to help families stay in their homes, retain their property, and have the opportunity to start fresh and continue contributing to their communities.”

NACBA also extends appreciation to the Delaware legislative sponsors of the bill: Rep. Paul Baumbach, Rep. Larry Lambert, Rep. Sherry Dorsey Walker, and Sen. David Sokola, for their invaluable support and leadership in championing this legislation.

The passage of HB 318 represents the 11th state-level legislative win for NACBA in the past four years. NACBA remains steadfast in its commitment to state exemption law advocacy, ensuring that consumer debtor rights are protected across the country.

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For Immediate Release

May 28, 2024

St. Paul, MN– On May 21, 2024 Governor Walz has signed the Minnesota Debt Fairness Act (SF 4097) into law. The Act introduces significant new bankruptcy exemptions for state debtors that take effect on August 1, 2024.

Authored by Senator Boldon and Representative Reyer, in collaboration with Attorney General Ellison’s Office, the bill passed the Senate on May 16th as part of the Commerce Policy Omnibus bill. Following its passage in the House, the bill was sent to the Governor for his signature.

NACBA member Jeffrey Bursell, Esq., played a pivotal role in advocating for and drafting the exemption changes included in the bill, alongside Andrew Walker, Esq., Ron Lundquist, Esq., Brian McDaniel, Esq. of Hylden Advocacy, and Minnesota Legal Aid's Ron Elwood, Esq. and Andrew Knox, Esq.

“NACBA proudly recognizes member Jeffrey Bursell of Solvent Law PLLC for his key role in advancing bankruptcy exemption legislation in Minnesota,” said Krista D’Amelio, NACBA’s Director of Government Affairs & Communications. "Since bringing these efforts to NACBA in 2022, Jeffrey and his colleagues have tirelessly advocated for these critical changes. Their work ensures protections for Minnesota's debtors, including enhanced safeguards for vehicles, possessions, and household tools, as well as a new $1,500 wildcard exemption, providing better outcomes and needed relief for those seeking a fresh start."

Along with key medical debt reform and judgment collection reforms, provisions of the Act include bankruptcy exemption changes that will help more Minnesota debtors protect their property when getting back on financial track through bankruptcy relief. Key features of the Minnesota Debt Fairness Act include:

Bankruptcy Reforms

• Doubling vehicle protection from $5,000 to $10,000, with additional protection for persons with disabilities and work vehicles.
• $2,000 protection for sacred and religious possessions.
• $3,000 protection for household tools, such as snowblowers and lawnmowers.
• Low income-based tax credits.
• Protection for money received in personal injury lawsuits.
• Protection for personal electronics and jewelry.
• $1,500 wildcard exemption for any property.

Medical Debt Reforms

• Ending the automatic transfer of medical debt to a patient’s spouse.
• Banning medical debt from being reported to credit bureaus.
• Prohibiting medical providers from withholding necessary care due to unpaid debt.
• Establishing new protections against unethical medical debt collection practices.
• Allowing successful defendants in medical debt lawsuits to have their attorney's fees paid.
• Requiring medical providers to publish their debt collection practices.
• Creating a process to dispute medical coding and billing errors.

Judgment Collection Reforms

• Implementing income-based wage garnishment levels, ranging from 10% to 25%, replacing the flat 25% cap.
• Extending wage garnishment protections to independent contractors.
• Extending wage garnishment protections to all residents and workers in Minnesota.

Attorney General Ellison commented, “Spouses will no longer be forced to pay off each other's medical debt in life or death. People won’t be denied necessary medical care due to unpaid bills, and working-class Minnesotans will face fairer wage garnishment rules. This Act makes the already difficult process of bankruptcy more affordable and accessible.”

NACBA congratulates Jeffrey Bursell and all advocates involved in this legislative achievement and looks forward to continuing its support for state-level reforms that ensure better outcomes for debtors.

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Tallahassee, FL – A significant milestone was marked for individuals navigating bankruptcy in Florida as Governor Ron DeSantis signed SB158 into law on Friday, April 26, 2024. This state legislative victory substantially raises the value of motor vehicles owned by individuals in bankruptcy, providing crucial relief to countless families across the state.

SB158 elevates the motor vehicle exemption from $1,000 to $5,000, effectively enabling more individuals to retain their cars during bankruptcy proceedings. Previously one of the lowest in the nation, this increase promises tangible benefits for Floridians facing financial hardships.

"NACBA proudly recognizes the dedication of our esteemed member and Fort Lauderdale attorney, Chad Van Horn, of Van Horn Law Group, for his instrumental role in advancing this pivotal legislation in Florida," remarks Krista D’Amelio, NACBA’s Director of Government Affairs & Communications. "Attorney Van Horn's tireless advocacy underscores the critical importance of state-level initiatives in securing essential legislative exemptions that federal regulations often overlook. His endeavors bring Florida's debtors one step closer to a fresh start by safeguarding their vehicles, which serve as a lifeline for many striving to overcome debt and maintain employment. NACBA extends heartfelt congratulations to Chad for his unwavering commitment, and NACBA eagerly anticipates continuing to serve as a steadfast resource for those advocating for exemption reforms at the state level, thereby ensuring better outcomes for their clients and much-needed relief for those in need."

Chad Van Horn, founding partner attorney of Van Horn Law Group explained, "I pushed for this change because I see hundreds of people each year lose their transportation in bankruptcy proceedings, which makes it harder for them to work and perpetuates the downward spiral into financial insecurity and distress. Although it took two years, I’m still extremely gratified the motor vehicle exemption was approved as it will provide much-needed assistance to individuals in dire financial circumstances."

The genesis of this legislative initiative dates back to the 2022 legislative session when Rep. Michael Gottlieb and Rep. Christopher Benjamin, spurred by Attorney Chad Van Horn, initially introduced the bill. Despite approval from both the Florida House and Senate at the time, the bill awaited the governor's signature. This year, Rep. Christopher Benjamin, along with co-sponsors Rep. Gottlieb, Rep. Dotie Joseph, and Rep. Johanna Lopez, revived the bill, culminating in its successful passage and eventual signing into law by Governor DeSantis.

State advocacy is vital in addressing the evolving needs of individuals navigating bankruptcy. NACBA believes the passage of SB158 underscores the critical role of proactive measures in safeguarding the financial well-being of Floridians.

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For media inquiries, please contact:

Krista D’Amelio, NACBA Director of Government Affairs & Communications: krista.damelio@nacba.com

Cindy Schutt, Cindy Schutt PR: Cindy@SchuttPR.com

About Van Horn Law Group

Van Horn Law Group, P.A. among the top five bankruptcy firms in the state based on number of cases filed in the last 12 months (pacer.gov), is dedicated to restoring peace of mind to individuals in financial distress by providing first-rate, affordable legal services with compassion, understanding and respect. The firm practices in the areas of personal and corporate bankruptcy, student loan consolidation and litigation, foreclosure defense, corporate reorganization, debt negotiation, civil litigation, debt relief, personal injury and consumer law. Van Horn, the author of Everything You Need to Know About Bankruptcy in Florida and The Debt Life, is certified in business and consumer bankruptcy. 

Van Horn Law Group, P.A. is headquartered in Fort Lauderdale with satellite offices in Doral, Miramar and Orlando. For more information about Van Horn Law Group, call (954) 637-0000 or visit www.vanhornlawgroup.com.

About the National Association of Consumer Bankruptcy Attorneys

The National Association of Consumer Bankruptcy Attorneys (NACBA) is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy. NACBA provides resources, education, and advocacy to empower bankruptcy attorneys in their mission to help individuals achieve financial stability.

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April 10, 2024

Contact: Krista D'Amelio NACBA Director of Government Affairs & Communications: krista.damelio@nacba.com

Virginia HB 1339 Enacted into Law, Takes Effect on July 1, 2024

Richmond, VA –The National Association of Consumer Bankruptcy Attorneys (NACBA) is pleased to announce that on April 8, 2024 Virginia Governor Glenn Youngkin signed into law HB 1339, marking a significant step forward in aiding those seeking a fresh financial start within the state. The bill, which takes effect on July 1, 2024, encompasses several key provisions aimed at fortifying financial security for struggling Virginia residents.

HB 1339, championed by Delegate Marcus Simon (D-53), passed through the legislature with resounding support and brings new financial safeguards for Virginians, with its comprehensive provisions addressing crucial aspects of consumer bankruptcy exemptions:

• Homestead Exemption Doubling: Building upon the groundwork laid in 2020, HB 1339 doubles the homestead exemption from $25,000 to $50,000, affording homeowners enhanced protections to keep their homes.
• Increased Car Exemption: Recognizing the importance of reliable transportation, the bill raises the car exemption from $6,000 to $10,000, ensuring that individuals have adequate resources to maintain their mobility and livelihoods.
• Indexing Provision: HB 1339 includes a forward-thinking provision for indexing most exemptions, allowing for adjustments in line with evolving economic conditions, thereby ensuring the relevance and efficacy of these protections over time.
• Resolution of Ambiguity: The bill clarifies an ambiguity regarding the use of the $25,000 homestead exemption for non-residential personal property alongside the $5,000 wildcard. This clarification, aligned with the original legislative intent, closes a loophole and reinforces the integrity of the exemption system.

“NACBA owes much of this bill’s success to the unwavering advocacy efforts of member Dan Press, whose dedication and commitment were instrumental in advancing the legislation,” remarked Krista D’Amelio, NACBA Director of Government Affairs and Communications. “NACBA will continue our commitment to statewide advocacy and coalition efforts, advocating for additional transformative changes that provide essential protections for individuals and families pursuing a financial fresh start while confronting unfair debt practices. We anticipate replicating this success in other states alongside our loyal NACBA members.”

As the provisions of HB 1339 prepare to take effect on July 1, 2024, Virginia stands poised to set a new standard for consumer bankruptcy protection, empowering individuals and families to navigate financial challenges with greater confidence and resilience.

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SALEM, OR – The National Association of Consumer Bankruptcy Attorneys (NACBA) celebrates the enactment of SB 1595, known as the Family Financial Protection Act (FFPA), as Governor Kotek of Oregon signed it into law on April 4, 2024. This historic legislation, endorsed with bipartisan support, marks a significant triumph for Oregon families, representing years of advocacy efforts to bolster consumer protections. It will take effect on January 1, 2025.

The FFPA stands as a comprehensive initiative designed to offer vital safeguards to families grappling with debt, heralding a pivotal moment in the modernization of consumer protection and debt laws. By curtailing predatory financial practices, this legislation establishes a new paradigm of fairness and equity in financial matters.

NACBA proudly supported the FFPA, a campaign championed by the Oregon Consumer Justice (OCJ). Noteworthy contributions from Senator Chris Gorsek and Representative Nathan Sosa were instrumental in shepherding the bill to success.

Crafted to confront multifaceted challenges, the FFPA extends comprehensive protections for families navigating debt recovery and shields consumers from unjust collection practices. Key provisions of the bill include:

• Expansion of Home Protection: Individuals and couples now enjoy increased home protection up to $150,000 and $300,000, respectively, a significant enhancement from the previous $40,000 threshold for individuals.
• Gradual Wage Exemption Increase: By 2027, the wage exemption from court seizure or garnishment will rise annually to keep pace with inflation.
• Bank Account Protection: The first $2,500 in an individual's bank account is now shielded from garnishment or seizure, preventing debt collectors from depleting entire accounts.
• Protection Against Unowed/Incorrect Debt: Collectors are prohibited from attempting to collect debts known to be non-existent or inaccurately calculated.
• Motor Vehicle Protection: Debtors can now exempt up to $10,000 for any motor vehicle, a significant increase from $3,000.
• Fair Legal Fee Protection: Consumers are relieved from covering creditor or debt collectors' attorney fees, making it financially feasible to contest incorrect debts and fostering a level playing field for consumers.

NACBA reaffirms its commitment to statewide advocacy and coalition efforts, championing additional transformative changes that deliver essential protections for individuals and families seeking a financial fresh start while combating unfair debt practices.

For further information, please contact: Krista D'Amelio NACBA Director of Government Affairs & Communications: krista.damelio@nacba.com

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NACBA Awards Jayme Wiebold The 2024 Henry J. Sommer Legal Aid Scholarship

Washington, DC– The National Association of Consumer Bankruptcy Attorneys (NACBA) is thrilled to announce the 2024 recipient of the prestigious Henry J. Sommer Legal Aid Scholarship. Jayme Wiebold, a dedicated legal aid attorney and passionate consumer advocate, has been selected for this honor.

The Henry J. Sommer Legal Aid Scholarship was established to recognize the exceptional contributions of President Emeritus Henry J. Sommer to NACBA and is awarded to a legal aid attorney attending the NACBA Convention for the first time. Jayme will be recognized for this scholarship during NACBA’s 32nd Annual Convention being held at the stunning Broadmoor Resort in Colorado Springs, CO.

Jayme Wiebold, with over five years of experience in legal aid and consumer protection work, has demonstrated an unwavering commitment to serving her community. Graduating from The University of Pennsylvania Law School in 2018 with a clear vision of working in the consumer protection space, Wiebold embarked on a career path dedicated to advocating for those in need.

Her journey into bankruptcy practice began during a law school externship, where she assisted numerous clients in preparing bankruptcy schedules and navigating the complexities of the process. Despite being relatively new to bankruptcy practice, Wiebold's dedication and passion for helping clients through challenging times have been evident. She currently is a Senior Staff Attorney at Iowa Legal Aid where she handles all bankruptcy cases in the Southern District of Iowa.

"NACBA is thrilled to award the Henry J. Sommer Scholarship to Jayme Wiebold, whose early commitment to consumer debtors in bankruptcy aligns perfectly with NACBA's mission,” states NACBA President Richard H. Nemeth. “We look forward to welcoming her to the convention and witnessing her continued contributions to the legal aid community, providing help for individuals and families seeking a financial fresh start.”

NACBA’s Annual Convention is a premier event in consumer bankruptcy law, bringing together legal professionals from across the country for education, networking, and advocacy. NACBA looks forward to honoring Jayme in Colorado Springs, CO. Look to read about her convention experience in the Fall 2024 edition of NACBA’s Consumer Bankruptcy Journal being published in September 2024.

CONTACT: Krista D’Amelio, NACBA Director of Government Affairs & Communications; krista.damelio@nacba.com

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ABOUT NACBA

NACBA is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy. Formed in 1992, NACBA now has more than 4,000 members located in all 50 states and Puerto Rico.

An integral part of NACBA’s mission is enhancing the ability of its members to represent their clients effectively by holding educational programs that provide learning opportunities and collegial forums.

NACBA’s Annual Convention, held each spring, is the educational seminar of choice for consumer bankruptcy attorneys nationwide. Judges and nationally recognized speakers provide case law updates, practical tips on effective representation of clients, information on emerging trends nationwide, and in-depth discussions of topical issues.