Under current law, a debtor's interest in certain property and the value of
certain property are exempt from execution, from the lien of every judgment, and
from liability for the debtor's debts, allowing the debtor to keep that property rather
than have the property taken to pay the amounts owed to creditors. This bill raises
the value of some of the property that is exempt as shown by the following table: - See PDF for table PDF

The bill also allows a person who does not take an exemption for business
equipment, inventory, farm products, or professional books to take an exemption of
any interest the debtor has in a closely held business, up to a maximum amount of
$14,200.
In addition, the bill requires the Department of Administration, beginning in
January 2009, annually to adjust the exemption for the debtor's homestead,
currently set at $40,000, to reflect the annual change in the consumer price index for
all urban consumers. Current law extends the homestead exemption to land owned
by a husband and wife jointly or in common and allows either to claim the exemption
or to divide the exemption between them. The bill allows the husband and wife to
each claim a homestead exemption of not more than the adjusted $40,000 amount.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB858, s. 1 1Section 1. 815.18 (2) (bc) of the statutes is created to read:
AB858,2,52 815.18 (2) (bc) "Closely held business" means a corporation whose stocks are
3held by not more than 25 individuals, a partnership of not more than 25 partners who
4are individuals, or a limited liability company of not more than 25 members who are
5individuals.
AB858, s. 2 6Section 2. 815.18 (3) (b) of the statutes is renumbered 815.18 (3) (b) 1. and
7amended to read:
AB858,2,108 815.18 (3) (b) 1. Equipment, inventory, farm products , and professional books
9used in the business of the debtor or the business of a dependent of the debtor, not
10to exceed $7,500 $14,200 in aggregate value.
AB858, s. 3 11Section 3. 815.18 (3) (b) 2. of the statutes is created to read:
AB858,2,1412 815.18 (3) (b) 2. If the debtor does not claim an exemption under subd. 1., any
13interest of the debtor, not to exceed $14,200 in aggregate value, in a closely held
14business that employs the debtor or in whose business the debtor is actively involved.
AB858, s. 4 15Section 4. 815.18 (3) (d) of the statutes is amended to read:
AB858,3,5
1815.18 (3) (d) Consumer goods. Household goods and furnishings, wearing
2apparel, keepsakes, jewelry and other articles of personal adornment, appliances,
3books, musical instruments, firearms, sporting goods, animals, or other tangible
4personal property held primarily for the personal, family or household use of the
5debtor or a dependent of the debtor, not to exceed $5,000 $11,360 in aggregate value.
AB858, s. 5 6Section 5. 815.18 (3) (g) of the statutes is amended to read:
AB858,3,107 815.18 (3) (g) Motor vehicles. Motor vehicles not to exceed $1,200 $3,150 in
8aggregate value. Any unused amount of the aggregate value from par. (d) may be
9added to this exemption to increase the aggregate exempt value of motor vehicles
10under this paragraph.
AB858, s. 6 11Section 6. 815.18 (3) (i) 1. c. of the statutes is amended to read:
AB858,3,1412 815.18 (3) (i) 1. c. A payment, not to exceed $25,000 $45,440, resulting from
13personal bodily injury, including pain and suffering or compensation for actual
14pecuniary loss, of the debtor or an individual of whom the debtor is a dependent.
AB858, s. 7 15Section 7. 815.20 (1) and (2) of the statutes are amended to read:
AB858,4,916 815.20 (1) An exempt homestead as defined in s. 990.01 (14) selected by a
17resident owner and occupied by him or her shall be exempt from execution, from the
18lien of every judgment, and from liability for the debts of the owner to the amount
19of $40,000, as adjusted under sub. (3), except mortgages, laborers', mechanics', and
20purchase money liens and taxes and except as otherwise provided. The exemption
21shall not be impaired by temporary removal with the intention to reoccupy the
22premises as a homestead nor by the sale of the homestead, but shall extend to the
23proceeds derived from the sale to an amount not exceeding $40,000, as adjusted
24under sub. (3),
while held, with the intention to procure another homestead with the
25proceeds, for 2 years. The exemption extends to land owned by husband and wife

1jointly or in common or as marital property, and when they reside in the same
2household may be claimed by either or may be divided in any proportion between
3them, but the exemption may not exceed $40,000 for the household. If the husband
4and wife fail to agree on the division of exemption, the exemption shall be divided
5between them by the court in which the first judgment was taken
each spouse may
6claim a homestead exemption of not more than $40,000, as adjusted under sub. (3)
.
7The exemption extends to the interest therein of tenants in common, having a
8homestead thereon with the consent of the cotenants, and to any estate less than a
9fee.
AB858,4,16 10(2) Any owner of an exempt homestead against whom a judgment has been
11rendered and entered in the judgment and lien docket, and any heir, devisee, or
12grantee of the owner, or any mortgagee of the homestead, may proceed under s.
13806.04 for declaratory relief if the homestead is less than $40,000 , as adjusted under
14sub. (3),
in value and the owner of the judgment shall fail, for 10 days after demand,
15to execute a recordable release of the homestead from the judgment owner's
16judgment lien.
AB858, s. 8 17Section 8. 815.20 (3) of the statutes is created to read:
AB858,4,2518 815.20 (3) The department of administration shall adjust the amount of the
19homestead exemption under this section and s. 815.21 annually, beginning in
20January 2009, or on the effective date of this subsection .... [revisor inserts date],
21whichever is later, to reflect the annual change in the consumer price index for all
22urban consumers, U.S. city average, as determined by the U.S. department of labor.
23By March 1 of each year, the department of administration shall notify the director
24of state courts of the adjusted amount of the homestead exemption, which shall apply
25to all executions issued on or after that date.
AB858, s. 9
1Section 9. 815.21 (2) of the statutes is amended to read:
AB858,5,142 815.21 (2) If such plaintiff is dissatisfied with the quantity selected or the
3estimate of the value thereof, the officer shall cause such lands to be surveyed,
4beginning at a point to be designated by the owner and set off in compact form. After
5the lands are surveyed and set off, if in the opinion of the plaintiff, the same shall be
6of greater value than $40,000, as adjusted under s. 815.20 (3), the officer may still
7advertise and sell the premises so set off, and out of the proceeds of such sale pay to
8the exempt homestead claimant the sum of $40,000, as adjusted under s. 815.20 (3),
9and apply the balance of the proceeds of such sale on the execution; but no sale shall
10be made in the case last mentioned unless a greater sum than $40,000 , as adjusted
11under s. 815.20 (3),
is paid for said premises. The expenses of such survey and sale
12shall be collected on the execution if the owner claimed as the owner's homestead a
13greater quantity of land or land of greater value than the owner was entitled to;
14otherwise such expenses shall be borne by the plaintiff.
AB858, s. 10 15Section 10. 815.21 (4) of the statutes is amended to read:
AB858,5,2516 815.21 (4) A homestead so selected and set apart by such officer shall be the
17exempt homestead of such person. The costs of such notice and survey shall be
18collected upon the execution. A failure of the officer to set apart such homestead shall
19affect such levy, only as to such homestead; and the failure of such person to select
20that person's homestead shall not impair that person's right thereto, but only that
21person's right to select the same when such selection is lawfully made by such officer.
22After such homestead is thus set off by such officer, if, in the officer's opinion or in
23the opinion of the plaintiff, the premises are of greater value than $40,000, as
24adjusted under s. 815.20 (3),
the officer may sell the same as where the owner makes
25the selection.
AB858, s. 11
1Section 11. 815.21 (5) of the statutes is amended to read:
AB858,6,62 815.21 (5) If the land claimed as an exempt homestead exceeds in value
3$40,000, as adjusted under s. 815.20 (3), the officer shall not be bound to set off any
4portion thereof but may sell the same, unless the debtor shall make the debtor's
5selection of such a portion thereof as shall not exceed $40,000, as adjusted under s.
6815.20 (3),
in value.
AB858, s. 12 7Section 12. Initial applicability.
AB858,6,98 (1) This act first applies to executions issued on the effective date of this
9subsection.
AB858,6,1010 (End)
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