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HR4044FEDERALin_committee

Congress proposes bankruptcy means-test exemption for National Guard and Reserve members

Original title: To amend title 11 of the United States Code to exempt for a limited period, from the application of the means-test presumption of abuse under Chapter 7, qualifying members of reserve components of the Armed Forces and members of the National Guard who, after September 11, 2001, are called to active duty or to perform a homeland defense activity for not less than 90 days.

June 24, 2008

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Where This Stands

Introduced
Committee
Floor Vote
Passed
Signed

Currently in_committee. The next step in the legislative lifecycle is Floor Vote.

Last action
Received in the Senate and Read twice and referred to the Committee on the Judiciary.Jun 24, 2008

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

The Frame

What this does

This measure provides financial flexibility for service members by removing a legal hurdle that typically prevents higher-income earners from liquidating debt through bankruptcy.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

National Guard

Members meeting the service criteria are exempt from the Chapter 7 means-test.

Reserve components of the Armed Forces

Members meeting the service criteria are exempt from the Chapter 7 means-test.

What changed

Current stage: in_committee.

What's next

Floor Vote.

Summary

This bill exempts qualifying National Guard and Reserve members from the '' bankruptcy requirement if they were called to active duty or homeland defense for at least 90 days after September 11, 2001. This change allows these service members to file for bankruptcy without being automatically presumed to be abusing the system.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is the 'means-test' in bankruptcy?
It is a calculation used to determine if a person has enough disposable income to pay back some of their debts, which can prevent them from filing for bankruptcy.
Who qualifies for this exemption?
Members of the National Guard or Reserve components of the Armed Forces who served at least 90 days of active duty or homeland defense after September 11, 2001.

Why It Matters

This measure provides financial flexibility for service members by removing a legal hurdle that typically prevents higher-income earners from liquidating debt through bankruptcy.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Post-9/11 Military Protections

The bill specifically ties bankruptcy relief to service requirements originating after the September 11, 2001 attacks.

Connected Entities

organizationNational GuardA primary group affected by the exemptionMap →
organizationCommittee on the JudiciaryThe Senate committee currently reviewing the billMap →
organizationArmed ForcesThe military branches whose reserve components are affectedMap →
otherUnited States CodeThe federal statutory code being amendedMap →

Analysis Score

0–100
  • Significance60
    How much this matters to a regular citizen
  • Controversy20
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz10
    Current news / social attention level

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