On December 19, 2023, the National Guard and Reservists Debt Relief Extension Act of 2023 was signed into law by President Biden. The Act extends the time during which National Guard and Air Force reservists who have been called to active duty, and have served at least 90 days post September 11, 2001, are exempt from having to complete the means test in a personal bankruptcy.
This is the fourth such extension of the 2008 amendment to the Bankruptcy Abuse Prevention and Consumer Protection Act (“BAPCPA”), providing qualified reservists with additional time to take advantage of filing for chapter 7 relief. The reservists servicemembers are distinguishable under the Act from active duty servicemembers, those who have completed active duty within 540 days of filing a bankruptcy, and permanently disabled veterans, for whom the exemption from completing the means test exists without limitation.
Exemption from the means test allows individuals the unrestricted ability to obtain chapter 7 relief regardless of their current monthly income calculation. The extension under the 2023 Act will provide a significant positive impact for qualified reservists to obtain the most desirable, time-efficient, and cost-effective form of federal debt relief available to consumers. It also indicates Congress’ intent to continue to provide qualified reservists and servicemembers who have served at least 90 days post-9/11 with the same degree of relief under the Bankruptcy Code as their disabled, and current or recent active-duty counterparts.
Interested veterans and servicemembers who have served at least 90 days following September 11, 2001, who are interested in their debt relief options can contact Michelle H. Bass [email protected]
The full text of the National Guard and Reservists Debt Relief Extension Act of 2023, 118 H.R. 3315 may be found at: