Protecting Gun Owners in Bankruptcy Act

Protecting Gun Owners in Bankruptcy Act amends the federal bankruptcy code to create a new exemption category for firearms. Specifically, it adds a provision allowing a debtor to exempt, from the bankruptcy estate, an aggregate interest in firearms up to $3,000 in value. The exemption is added to the federal list of property that can be exempted under Chapter 7 or other applicable proceedings. The bill clarifies that this exemption applies to cases filed on or after the enactment date (not retroactive to existing cases) and is intended to help bankruptcy debtors keep firearms in certain circumstances. The effect is to protect a debtor’s right to retain firearms up to a $3,000 value cap, rather than having them fully liquidated to satisfy creditors. In short, if enacted, individuals in bankruptcy could exempt up to $3,000 worth of firearms from the bankruptcy estate, provided their case is commenced after enactment.