National Guard Finally Gets Bankruptcy Relief
There was good news on the home front last week as the U.S. House approved a bipartisan bill to offer bankruptcy relief to thousands of members of the National Guard and reservists on active duty in Iraq and Afghanistan.
H.R. 4044 would amend the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) to exempt from the means test in bankruptcy cases certain reserve members who are called to active duty or homeland defense work for 90 days. Between September 11, 2001 and November 30, 2007, roughly 450,000 reservists have been deployed to the two war zones, and about one-fourth of those are suffering financially.
Military Families not Exempt from Economic Woes
Foreclosures and bankruptcy rates have continued to climb, and military families are no exception. The act would allow Guard members and reservists to receive the same means testing exemption for Chapter 7 bankruptcy that disabled veterans received in the 2005 act. By filing Chapter 7 bankruptcy, debts can be completely dissolved unless the debtor has the financial capacity for repayment.
Rep. Jan Schakowsky (D-Ill.), the bill's sponsor, was pleased to see it pass by a strong voice vote. "Today's passage brings us another step closer to providing modest financial relief to reservists and Guard members who are struggling to make ends meet because of their service," she said. Rep. Dana Rohrabacher (R-Cal.) was her Republican co-sponsor.
Information and help are available
You need not be a military family to be overloaded with a seemingly endless stack of bills needing payment. The current economy finds new victims each day.
So you too may wish to consider options to avoid losing your home or going even further into debt. Chapter 13 bankruptcy may be the answer if you have overwhelming bills and have fallen behind on your mortgage payments. Take action today by talking with a Total Lawyers sponsoring attorney! Our number is 1 (877) 349-1309, and you may also use our secure online case evaluation form to be connected with a local bankruptcy attorney.
