House Judiciary Committee Approves the National Guard and Reservists Debt Relief Act

Press Release

HOUSE JUDICIARY COMMITTEE APPROVES THE NATIONAL GUARD AND RESERVISTS DEBT RELIEF ACT

The House Judiciary Committee unanimously approved H.R. 4044, the National Guard and Reservists Debt Relief Act, which was introduced by U.S. Representatives Jan Schakowsky (D-IL) and Dana Rohrabacher (R-CA). The bipartisan bill, which currently has 65 cosponsors, would allow Reservists and National Guard Members to file for bankruptcy relief without the burdens imposed by the current bankruptcy law. The bill will soon be considered by the full House of Representatives where it is expected to pass with bipartisan support.

"This bill will provide modest financial relief to Reservists and Guard Members who risk their lives to protect our way of life. We owe it to our service men and women to provide some measure of financial relief from the economic burdens caused by their service," said U.S. Representative Jan Schakowsky (D-IL). "Many reservists and guard members are pulled away from their families and jobs at a moments notice, leaving their spouse behind to support their family until they return. Our bill would help members of the National Guard and Reserve whose service has caused them financial hardship."

The National Guard and Reservists Debt Relief Act would make it easier for soldiers to file for bankruptcy by eliminating the means tests for those serving for more than 90 days in Iraq and Afghanistan. This exemption currently exists for disabled veterans. The Bankruptcy Abuse Prevention and Consumer Act, which became law in 2005, made it more difficult for members of the National Guard and Reservists to file for Chapter 7 bankruptcy by placing tougher restrictions on the dismissal of debt.

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