Protecting Gun Owners in Bankruptcy Act

Bill Number

H.R. 4064

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2025-06-20: Referred to the House Committee on the Judiciary.

Last Updated

2025-09-17T15:09:50Z

AI-Generated Summary

Summary of H.R. 4064: Protecting Gun Owners in Bankruptcy Act

Purpose

This bill aims to protect gun owners by allowing them to exempt certain firearms from being seized or sold during bankruptcy proceedings. It updates federal bankruptcy law to include firearms as a type of personal property that can be protected, ensuring owners retain limited value in their possessions amid financial hardship.

Key Provisions

• New Exemption in Federal Bankruptcy Code: Adds a provision to Section 522(d) of Title 11, United States Code (the Bankruptcy Code), exempting a debtor's interest in a single firearm or multiple firearms, up to a total value of $3,000.
• Update to Avoidance Powers: Amends Section 522(f)(4)(A) to include this firearm exemption when debtors seek to avoid liens (legal claims) on their property, treating firearms similarly to other exempt items like household goods.
• Effective Date and Application: The changes take effect on the date of enactment and apply only to bankruptcy cases filed on or after that date.

Significant Changes to Existing Law

• Prior to this bill, the federal exemptions under the Bankruptcy Code (Section 522(d)) did not explicitly include firearms, leaving them potentially vulnerable to creditors in bankruptcy estates.
• This introduces firearms as a specific category of exempt property, limited to $3,000 in aggregate value, expanding protections beyond existing exemptions for items like clothing, furniture, or vehicles.
• It aligns federal exemptions with state-level protections in some areas but standardizes a minimum safeguard nationwide for bankruptcy filers who opt for federal exemptions (as opposed to state ones).

Potential Impacts

• On Citizens: Benefits individuals filing for bankruptcy who own firearms by allowing them to keep items up to $3,000 in value, reducing the risk of losing personal protection tools during financial distress. It may encourage more gun owners to file for bankruptcy without fear of total asset forfeiture.
• On Government Agencies: Minimal direct impact, though bankruptcy courts and the U.S. Trustee Program (which oversees bankruptcy cases) may see slight administrative adjustments in processing exemptions and valuations of firearms.
• On International Relations: No apparent impact, as the bill focuses solely on domestic bankruptcy procedures.

Main Stakeholders Affected

• Gun Owners in Bankruptcy: Primary beneficiaries, particularly those with modest firearm collections, as they gain explicit legal protection for their property.
• Creditors and Bankruptcy Trustees: May face limitations on recovering value from firearms, potentially reducing funds available to pay debts.
• Bankruptcy Courts and Attorneys: Will need to interpret and apply the new exemption, including appraising firearm values, which could involve minor procedural updates.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Strengthens debtor protections under the Bankruptcy Code by specifying firearms as exempt, potentially reducing disputes over whether guns qualify under broader "personal property" categories. It requires fair market valuation of firearms to enforce the $3,000 cap.
• Constitutional Implications: Indirectly supports Second Amendment rights (the right to bear arms) by preserving firearm ownership in bankruptcy, though it does not alter gun control laws and remains neutral on broader firearm regulations.
• Political Implications: Reflects priorities of pro-gun advocacy, as introduced by representatives supportive of firearm rights, but the bill's narrow scope limits broader controversy, focusing on economic relief rather than gun policy debates.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Tenney, Claudia [R-NY-24]

Cosponsors (4)

Rep. Collins, Mike [R-GA-10], Rep. Owens, Burgess [R-UT-4], Rep. Weber, Randy K. Sr. [R-TX-14], Rep. Gosar, Paul A. [R-AZ-9]

Recent Actions

• 2025-06-20: Referred to the House Committee on the Judiciary.
• 2025-06-20: Introduced in House
• 2025-06-20: Introduced in House

Bill Versions

• Protecting Gun Owners in Bankruptcy Act — issued 2025-06-20 — PDF (2 pages)