U.S.
Rep. John Hall (D-NY19) helped the House yesterday pass legislation that would allow Reservists and National Guard Members to file for bankruptcy relief without the burdens imposed by the current bankruptcy law. H.R. 4044, the National Guard and Reservists Debt Relief Act, will now be sent to the Senate for further consideration.
“Too many service men and women suffer economic hardships as a result of their sacrifice for our country,” said Hall. “Not only are they pulled away from their families for their service, but also their careers, which can cause financial hardships. This bill gives our brave National Reservists and Guard Members a much needed break upon their return to our current troubled economy.”
The National Guard and Reservists Debt Relief Act would make it easier for soldiers to file for bankruptcy by prohibiting the bankruptcy court from dismissing or converting a case based on a means test. The bill would eliminate such a test for those serving for more than 90 days in Iraq and Afghanistan since September 11, 2001. The Bankruptcy Abuse Prevention and Consumer Act of 2005 made it more difficult for members of the armed services to file for Chapter 7 bankruptcy by placing rigorous restrictions on the dismissal of debt. The National Guard and Reservists Debt Relief Act’s means test exemption, which is already available to disabled veterans, extends the protection to other service men and women.
Last week, Congressman Hall helped the House pass historic legislation that will double the current veterans’ education benefit to fully cover four-year public college costs for U.S. service members.
