House Bill Helps Soldiers In Bankruptcy
When the call of duty strikes, many Americans step up to fight for our country. For many, leaving their jobs and families can create a sense of financial burden that can lead to hardship. As a result, many active service members are forced to seek bankruptcy protection while serving or when they return from duty.
Policy Changes
In the past, bankruptcy abuse prevention laws have made it difficult for some soldiers to protect assets or resolve debts in Chapter 7. The U.S. House of Representatives approved a bill to extend a law and allow exceptions for certain service members when entering the bankruptcy process.
The bill will extend the National Guard and Reservist Debt Relief Act of 2008, which had previously created exceptions for soldiers following the bankruptcy abuse and prevention law. Under the new bill, National Guard and Army reservists will now be able to shed debts in Chapter 7 with more ease than before. Citizen soldiers seeking bankruptcy protection will have certain restrictions over looked as the result of their deployment status.
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