New Law Aids Debt Relief for Guard, Reserve

Week of November 10, 2008

The new National Guard and Reserve Debt Relief Act of 2008 (public law 110-438) will ease bankruptcy rules for Guard and Reserve members who have served as active-duty Soldiers. The law was drafted after complaints from guardsmen and reservists whose small businesses and personal finances dwindled due to recurring combat deployments. The law prevents courts from dismissing bankruptcy cases based on means-testing if the Guard or Reserve member has been on active duty since Sept.11, 2001 and was active for more than 90 days. The law is effective through the first year and a half following the Soldier's return home. The full text of the new law is available at the Library of Congress' Thomas website at http://thomas.loc.gov/cgi-bin/bdquery/z?d110:s.03197:.