WASHINGTON – U.S. Senate Majority Whip Dick Durbin (D-IL) and U.S. Senator Lindsey Graham (R-SC) expressed their appreciation to President Biden for signing into law their bipartisan National Guard and Reservists Debt Relief Extension Act. The legislation, which reauthorizes relief for an additional four years for qualifying members of the National Guard and Reserves experiencing financial hardship, will protect a long-standing bipartisan carveout from means-testing restrictions in Chapter 7 bankruptcy cases.
"Declaring bankruptcy is a difficult choice for any American, and that option should be assessed using an accurate depiction of a person’s income and financial standing. Our National Guard members and reservists must not be penalized for any active duty pay should financial calamity force them to file for Chapter 7 bankruptcy," said Durbin. "Now that the National Guard and Reservists Debt Relief Extension Act bears President Biden’s signature, the legislation can support service members going through financial difficulty."
Graham added, "I’m proud this measure supporting members of the National Guard and Reserves was signed into law. Providing relief for these service members who served their country while on active duty is an issue both sides can embrace."
The National Guard and Reservists Debt Relief Extension Act of 2023 will reauthorize the National Guard and Reservists Debt Relief Act of 2008, which exempted qualifying members of reserve components of the Armed Forces and the National Guard from provisions in the Bankruptcy Code that limit access to Chapter 7 bankruptcy based on recent income. The limits could otherwise prevent National Guard members and reservists from receiving financial relief in bankruptcy due to their higher pay during active duty compared to their civilian jobs. The National Guard and Reservist Debt Relief Extension Act ensures that they are not penalized for their service.
With the signing of this legislation, the financial burden on National Guard members and reservists experiencing financial hardship while serving their country will be alleviated for the next four years.
To learn more, click on this link: https://www.judiciary.senate.gov/press/releases/durbin-graham-react-to-president-biden-signing-their-national-guard-and-reservists-debt-relief-extension-act-into-law
