The proposed legislation, Substitute Bill No. 300, aims to amend Section 52-352b of the general statutes to establish a debt collection exemption specifically related to joint accounts. The bill introduces a new provision that exempts any part of the balance of a joint account, as defined under section 36a-290, in which the exemptioner has no equitable ownership interest. This exemption applies to funds deposited in the account or acquired by a joint account holder other than the exemptioner for the sole benefit of that joint account holder.

Additionally, the bill repeals the existing provision regarding irrevocable transfers of money to accounts held by licensed debt adjusters for the benefit of creditors, thereby removing that exemption from the law. The overall effect of this legislation is to protect certain funds in joint accounts from being subject to debt collection actions, thereby providing greater financial security for individuals who may be facing debt issues. The changes are set to take effect on October 1, 2026.

Statutes affected:
Raised Bill: 52-352b
BA Joint Favorable Substitute: 52-352b
File No. 125: 52-352b
JUD Joint Favorable: 52-352b